Nepal has taken a major step in reforming its electricity sector. The Nepal Electricity Regulatory Commission has issued a new Open Access Directive, allowing private companies to use the national electricity transmission and distribution network.
This move reduces the long-standing control of the Nepal Electricity Authority (NEA) and opens the door for competition in power transmission and distribution.
What the Open Access Directive Allows
Under the new directive, qualified electricity producers, industries, and power traders can access the electricity grid without being required to sell power exclusively through the NEA.
This means electricity can now be transmitted or distributed through the national network under regulated conditions, even if the user is not NEA.
Who Is Eligible for Open Access
The directive allows open access for:
- Power producers with large generation capacity
- Captive power plants used by industries
- Large industrial and commercial electricity users
- Cross-border electricity trading entities
Eligibility depends on voltage level, capacity size, and technical compliance with grid rules.
Charges and Rules Still Being Finalized
While the directive has been issued, full implementation will take time.
Detailed policies on:
- Transmission and wheeling charges
- System usage fees
- Settlement and deviation charges
still need to be finalized to make open access fully operational.
Until these frameworks are completed, practical use of open access will remain limited.
Role of Nepal Electricity Authority
Although NEA’s monopoly is being reduced, it will continue to play a key role in grid operation and system management.
NEA will act as the system coordinator for open access requests unless the government assigns this responsibility to another body.
Why This Change Matters
For years, Nepal’s power sector operated under a single-buyer system. Private producers had limited control over how and where they could sell electricity.
The Open Access Directive:
- Encourages private investment
- Promotes competition in the power market
- Supports industrial growth
- Improves efficiency in electricity use
Experts view this as a crucial step toward a modern and competitive energy sector.
What Comes Next
The success of open access will depend on:
- Clear pricing mechanisms
- Transparent approval processes
- Fair grid usage rules
Once these are in place, Nepal could see faster growth in electricity trade and better use of its power resources.
Also Read: Nepal Passport Ranked 96th in 2026 Henley Passport Index
