The meeting increased the price of electricity by only 1.5 percent for 2026 compared to 2025.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
The 17th meeting of the Nepal-India Electricity Exchange Committee (PEC) has fixed the electricity price for 2026. The meeting increased the electricity price for 2026 by only 1.5 percent compared to 2025.
The meeting fixed the rate of electricity purchased through 132 kV transmission lines at 8.22 rupees (13 rupees 15 paisa) per unit, 8.91 rupees (11 rupees 58 paisa) per unit at 33 kV and 9.55 rupees (15 rupees 28 paisa) per unit at 11 kV. The issue of electricity purchase rate structure will be reviewed and discussed again in detail next year.
The meeting was led by Shakya, Executive Director of Nepal Electricity Authority, from Nepal, while Vijay Kumar Singh, Board Member of Central Electricity Authority, from India.
The price of electricity exchange through the 132 kV transmission line was fixed at 8.1 baht (12 rupees 96 paisa) per unit for 2025. The price of electricity through the 33 kV transmission line was fixed at 8.78 baht (14 rupees 04 paisa) per unit and the price of electricity imported and exported through the 11 kV transmission line was fixed at 9.41 baht (15.05 rupees). The then Executive Director Kulman Ghising was asked for an explanation by the then Energy Minister Deepak Khadka for agreeing to a high rate at that time.
The meeting held in Pokhara on Falgun 28 and 29 was attended by Senior Divisional Engineer Sanjeev Rai of the Ministry of Energy, Water Resources and Irrigation and a representative of the Ministry of Foreign Affairs and First Secretary of the Indian Embassy in Kathmandu Suman Shekhar.
It is expected that Nepal's electricity supply management will be further strengthened during the dry season in the coming Chaitra-Baishakh months. Currently, the Nepal Electricity Authority is importing about 12,000 to 14,000 megawatt hours of electricity daily, and this amount will increase further as the energy demand increases during the dry season.
The process of purchasing electricity through PEC for electricity exchange between Nepal and India has been continuously operating since 1992. The Authority also says that this mechanism, which has been in operation for more than three decades, has been established as an important basis for Nepal-India energy cooperation. The meeting determined the electricity purchase rate for the next one year, said Hitendre Dev Shakya, Executive Director of the Authority.
The Board of Directors of the Authority authorized the Executive Director to negotiate and agree on the electricity purchase rate and sign the agreement during the meeting.
During the negotiations, the Indian side proposed a 5.5 percent increase in the electricity purchase rate, citing the increase in costs related to electricity generation and supply. Nepal's side argued that there was no need for a rate increase, citing that the current market rate is relatively low based on a study of the Indian electricity market and available market indices.
