Kathmandu. KATHMANDU: The Independent Power Producers’ Association of Nepal (IPPAN) has submitted a 12-point memorandum to the Electricity Regulatory Commission (ERC) demanding immediate implementation of the legal and regulatory provisions to ensure participation of the private sector in electricity trade. <\/p>\n
Newly appointed Chairman of the Electricity Regulatory Commission, Dr. A delegation led by NHRC Chairman Mohan Kumar Dangi today reached the Commission to congratulate and congratulate members Jayaraj Bhandari, Lokraj Pathak and Balaram Silwal for their successful tenure. <\/p>\n
On the occasion, IPPAN Chair Dangi pointed out the need for the Regulatory Commission to play a facilitation-oriented role for the development and expansion of the electricity sector and expected continuous dialogue and collaboration with the Commission to resolve the policy-level and implementation problems facing the projects being faced by the private sector. He was of the view that the Commission should focus on the big policy issues rather than the small procedural issues and should focus on creating environment for the country’s prosperity through energy. <\/p>\n
In the memorandum submitted to the Commission, the EPPAN urged the Commission to prioritize implementation of open access to electricity transmission and distribution system, allowing the private sector for bilateral power trade, preparing a model bankable power purchase agreement (PPA) as per the international practice, establishing a dispute resolution mechanism and making the approval process simple, transparent and time-bound. <\/p>\n
Likewise, the CPN has demanded to issue clear policy on take-pay PPA and contingency PPA, clear directives regarding merger, acquisition, cross-holding and share swap of hydropower companies and compensation for financial loss caused by delay in the construction of transmission lines. g. <\/p>\n
The EPPAN has also called for making pre-approval guidelines on public issue of electricity companies practical, incorporating the PPA period, license period and provision of investment through subsidiary companies, making corporate governance standards private sector-friendly, separate appropriate PPA for reservoir-based and pumped storage hydropower projects, proper cost based return, recognition of energy storage and necessary incentives. g. <\/p>\n
On the occasion, Chairman of the Commission, Dr. On the occasion, Chairman Ram Prasad Dhital said the private sector was an important partner in the development of the electricity sector and expressed commitment to work by prioritizing collaboration, dialogue and coordination with the private sector. Stating that the objective of the commission is not only regulation but also sustainable development of electricity sector, investment promotion and protection of consumers’ interests, he said initiatives would be taken for necessary reforms after positively studying the suggestions received from the private sector. <\/p>\n
Stating that regular dialogue between the Commission and the private sector was necessary to resolve the complex issues of the electricity sector, Chairman Dhital expressed the view that the Commission would focus on creating a transparent, predictable and investment-friendly regulatory environment in collaboration with all stakeholders. <\/p>\n
Points that the Electricity Regulatory Commission should address immediately<\/strong><\/p>\n 1. To immediately implement the necessary guidelines for the implementation of open access in the electricity transmission and distribution system, clear provisions regarding wheeling charge and use of the grid, <\/p>\n 2. To establish a clear Dispute Resolution Mechanism for the speedy resolution of disputes arising between the project developer, Nepal Electricity Authority and other stakeholders, <\/p>\n 3. To make the process of approval and approval by the Electricity Regulatory Commission simple, transparent and time-bound, <\/p>\n 4. To immediately implement necessary legal and regulatory provisions to enable the private sector to conduct business-to-business electricity trade, <\/p>\n 5. To prepare and implement the template of the Bankable Power Purchase and Sale Agreement (PPA) as per the international practice, <\/p>\n 6. To provide appropriate compensation for the financial loss to the project due to delay in the construction of the transmission line of the Nepal Electricity Authority, <\/p>\n 7. To remove confusion regarding Take and Pay PPAs and to issue clear policies and guidelines, <\/p>\n 8. After the completion of credit rating and underwriting by the Securities Board, the Commission should not repeat the mandatory process on the same issue of IPO, <\/p>\n 9. To clarify the guidelines on merger, acquisition, cross holding and share swap of hydropower companies in a manner consistent with the Companies Act and securities laws<\/p>\n .<\/p>\n 10. To amend the pre-approval guidelines related to the Public Issue (IPO) of the electricity company to make the PPA period, license period and investment through subsidiaries<\/p>\n practical.<\/p>\n 11. To make the standards related to corporate governance of licensees friendly to the private sector and to make practical amendments in the procurement process, participation and management of the concerned company, <\/p>\n 12. To make clear regulatory provisions for reservoir-based and pumped storage hydropower projects such as appropriate PPAs, cost-based returns, accreditation of energy storage and necessary incentives.<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. KATHMANDU: The Independent Power Producers’ Association of Nepal (IPPAN) has submitted a 12-point memorandum to the Electricity Regulatory Commission (ERC) demanding immediate implementation of the legal and regulatory provisions to ensure participation of the private sector in electricity trade. Newly appointed Chairman of the Electricity Regulatory Commission, Dr. A delegation led by NHRC Chairman […]<\/p>\n","protected":false},"author":9,"featured_media":309613,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45212,45159],"tags":[],"class_list":["post-309615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hydropower-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=309615"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309615\/revisions"}],"predecessor-version":[{"id":309616,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309615\/revisions\/309616"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/309613"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=309615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=309615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=309615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}