Electricity Regulatory Commission Incremental Fee Notice
Notice Regarding Implementation of Incremental Service Fee - The Electricity Regulatory Commission (ERC), Sano Gaucharan, Kathmandu, issues this notice to inform all stakeholders that the Incremental Service Fee is being implemented to streamline and systematize service fees charged under existing laws for regulatory services provided to consumers.
The fee amendment and implementation are based on the following laws and regulations:
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Electricity Regulatory Commission Act, 2074 – Section 42
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Electricity Purchase and Sale, and Licensee Integration, Merger, Share Purchase, Asset Transfer, Acquisition Guidelines, 2077 – Section 43
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Pre-Approval and Regulatory Guidelines for Public Share Offering by Power Companies, 2078
As per the authority granted by the above provisions, the following revisions to service fees have been made. These changes will be effective from 2082 Shrawan 1.
Amendments to Electricity Purchase and Sale Licensee Regulations, 2076
Sub-rule (2) of Rule 17 is replaced as follows:
For companies applying for the first time for pre-approval of share structure change:
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NPR 1,00,000 for up to NPR 100 million paid-up capital
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NPR 50,000 for every additional NPR 100 million
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The original bank voucher must be submitted to the Commission
Sub-rule (2a) has been added after Sub-rule (2):
For companies applying for the second time or thereafter for the same approval:
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NPR 1,00,000 for up to NPR 100 million of changed capital
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NPR 50,000 for every additional NPR 100 million
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The original bank voucher must be submitted to the Commission
Sub-rules (5) and (6) added after Sub-rule (4):
(5) "Share structure change" means any of the following changes exceeding 5% in the shareholding of an electricity licensee company, excluding changes in authorized or issued capital:
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(a) Share purchase and sale leading to a change in paid-up capital
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(b) Bonus shares or public issuance of shares
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(c) Transfer of ownership without change in paid-up capital
(6) In cases where paid-up capital remains unchanged but share transactions occur among existing or new shareholders:
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NPR 1,00,000 for transactions up to NPR 100 million
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NPR 50,000 for each additional NPR 100 million
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If both paid-up capital increase and share transactions occur simultaneously, the higher amount between the two will be used as the basis for fee calculation.
Amendment to Schedule 4, Clause (3)
The phrase “For projects above 1,000 MW, a lump sum of NPR 12,000,000 (twelve million)” is replaced with
“For projects above 1,000 MW, a lump sum of NPR 12,090,000 (twelve million ninety thousand)”
Amendment to Schedule 12 of the Guidelines for Licensee Mergers and Share Transactions, 2077
The clarification has been revised as follows:
For the purpose of this schedule, "Base Value" refers to:
(1) In case of mergers or amalgamations: The total of the paid-up capital of the involved parties
(2) In case of asset purchase/sale or acquisition: The higher of the applicant's current or post-change paid-up capital
(3) For first-time share purchase applications: The prevailing paid-up capital
For second or subsequent applications: The altered or increased capital
Amendment to Schedule 6 of the Public Share Offering Guidelines, 2078
The phrase “based on the paid-up capital after the proposed public share offering” is replaced with “based on the amount of the proposed public share offering”
