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.
In the budget, the government has put forward a policy in the hydropower sector that 'electricity purchase agreements will be made in accordance with the take and pay concept of run of river projects'. However, while answering questions from MPs in the House of Representatives on Monday, Energy Minister Deepak Khadka said that the policy of 'Take or Pay' has been introduced instead of 'Take and Pay'.
Minister Khadka did not utter the word 'take and pay' in response to the question asked by the parliamentarians about the allocation of the Ministry of Energy. "In order to promote private sector investment in hydropower and transmission sector, a policy framework has been prepared for take-or-pay agreement, tariff bidding system, transmission line, electricity business participation, and the participation of the private sector in the development and construction of transmission line has been increased in the public private partnership model," said Khadka.
Deputy Prime Minister and Minister of Finance Bishnu Prasad Paudel's budget statement submitted on May 15 states that in the item number 227, 'Substations and transmission lines will be constructed in accordance with the schedule of completion of the hydroelectric project.' A policy of electricity purchase agreement will be taken so that the balance between electricity production and consumption is maintained . Power purchase agreement will be made in accordance with the take and pay concept of the Run of River project.'
Hydropower producers and parliamentarians raised questions about this arrangement. The hydropower producers have announced the protest.
MPs have questioned that they have confused by saying another arrangement without mentioning the arrangement brought in the budget.
'Take and Pay' is a system in which the Nepal Electricity Authority buys electricity from the producer only on the basis of need and only pays for it, while 'Take or Pay' is a system in which the payment must be made according to the contract regardless of whether the electricity is purchased from the producer or not. Currently in implementation According to the provision of 'take or pay', there is a provision that the authority will be fined if the producer fails to provide electricity as per the contract. In Take and Pay, if the authority does not purchase electricity, the electricity produced by the producer may be wasted.
