The Nepal Electricity Authority (NEA) has prepared a draft ‘consumer tariff rate’ that seeks reduction of power tariff levied on households.

The move, the first of its kind, is aimed at increasing electricity consumption among the general public.

At present, the per unit rate of electricity rises along with the increase in consumption whereas the draft has proposed reducing the rate as consumption increases.

As per the existing tariff rate, general consumers pay five rupees per unit for consuming up to 20 units. The rate shoots up to Rs 13 per unit for consumers of above 400 units. The proposed draft hikes the rate for minimum consumption of up to 20 units to Rs 11.5, but the rate drops to three rupees per unit for consumption of over 400 units.

NEA has also proposed not to impose service charge for consumption of less than 20 units per month.

Currently, NEA charges three rupees per unit as service fee.

The draft was tabled at the NEA board a month ago and it will be approved in the next board meeting, scheduled towards the end of the week.

Meanwhile, the government is also preparing to provide 10 units electricity free per month for those who only use up to 20 units a month.

As per NEA data, more than two million households consume less than 20 units per month, while one million households only consume 10 units of electricity a month.