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Private Power Producers Protest ‘Take and Pay’ Provision in Budget

Kamal 3 weeks ago 0 156

Private energy entrepreneurs in Nepal have taken to social media, protesting the government’s decision to introduce the ‘Take and Pay’ (Liu Ra Tir) system for electricity purchase agreements (PPA) in the new fiscal year budget.

Under this system, the government would only pay for the electricity it uses, instead of paying for the total electricity generated by hydropower projects. Entrepreneurs argue this move could severely hurt the private sector, discourage investment, and push the country back toward power shortages.

Online Campaign Targets Top Officials

Energy producers are now directly appealing to key government figures. They have publicly tagged Prime Minister Pushpa Kamal Dahal, Finance Minister Barshaman Pun, Energy Minister Shakti Bahadur Basnet, and NEA Executive Director Kulman Ghising on social media, urging them to withdraw the Take and Pay provision.

This digital campaign comes just days after developers handed over a memorandum to the Prime Minister and bombarded top officials with hundreds of SMS messages requesting the same.

Why Are Entrepreneurs Worried?

Entrepreneurs claim that this decision will:

  • Weaken the private sector’s role in the energy industry 
  • Risk the return of load-shedding (power cuts) 
  • Causes financial losses to investors 
  • Damage the overall economy 

The Independent Power Producers’ Association of Nepal (IPPAN) has strongly opposed the provision. According to IPPAN’s Vice President and protest coordinator Mohan Kumar Dangi, the policy shift will discourage private hydropower development, especially for Run-of-River (RoR) projects, which are most affected by the new model.

Ongoing Protests and Next Steps

Since Asar 6, private power developers have been staging a phase-wise protest. On the third day of their movement, they moved their campaign to social media to raise public awareness and pressure the government.

Dangi warned that if the government ignores these peaceful efforts, the protests will escalate. Planned steps include:

  1. Lobbying political party leaders in Parliament 
  2. Launching a nationwide street protest 
  3. Returning the keys of privately built hydropower projects to the government — a symbolic act of handing over control 

Background: The Budget Controversy

The controversy started when the budget for FY 2082/83 (announced on Jestha 15) stated that all future PPAs for RoR hydropower projects would be done under the Take and Pay model only. This was a major change from the previous Take or Pay model, where producers were paid even if electricity wasn’t consumed, offering more security for private investors.

Conclusion

The ‘Take and Pay’ decision has sparked serious concerns across Nepal’s private energy sector. Developers fear this could lead to a slowdown in future hydropower investments, and possibly, a return to unstable electricity supply. With pressure mounting both online and offline, the government’s next move will be critical for the future of Nepal’s energy landscape.

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