Following a commission meeting on September 10, 2083 BS, the ERC published the drafts for the 'Meter Installation and Operation Directive, 2083' and the 'Deviation Settlement Mechanism Directive, 2083' to gather feedback from the public and stakeholders. These guidelines are introduced under Section 51 of the Directive on Open Access to Electricity Transmission and Distribution System, 2082, and Section 43 of the Electricity Regulatory Commission Act, 2074.
Modernizing Metering for Transparency
The Meter Installation and Operation Directive, 2083 establishes strict standards regarding the location, type, ownership, and accuracy of energy measurements. As multiple producers and consumers will share transmission and distribution lines under the open access framework, the directive mandates an advanced metering system to precisely track generation and consumption.
Data will be automatically collected, transmitted, and stored using power line carriers, radio frequencies, and GSM 3G/4G technology, and managed centrally through the Meter Data Management System (MDMS). The commission anticipates this digital overhaul will ensure transparent measurements and form a fair basis for calculating fees, fines, and incentives.
Introducing the Deviation Settlement Mechanism
To safeguard grid stability and maintain frequency balance, the ERC proposed the Deviation Settlement Mechanism Directive, 2083. Under this framework, electricity producers and buyers must strictly adhere to pre-approved generation and consumption schedules.
Any variance between the scheduled plan and actual execution is classified as a 'deviation.' To mitigate the stress these variances place on the grid, the draft outlines a structured system of penalties and incentives:
-
Penalties: Projects causing a negative impact on the grid will face fines ranging from Rs 4 to Rs 16 per unit of deviation.
-
Incentives: Contributors who aid grid balance will receive incentives ranging from Rs 5 to Rs 20 per unit.
Expanding the Open Access Framework
The drafts were prepared by a specialized sub-committee coordinated by ERC member Lokraj Pathak, which included representatives from the Nepal Electricity Authority (NEA), the National Transmission Grid Company, the Independent Power Producers' Association of Nepal (IPPAN), and industry experts.
Previously, the commission published draft directives for 'Grievance Redressal' and 'Balance and Settlement.' Additional guidelines covering wheeling charges and grid connectivity are slated for public consultation soon.
Once fully implemented, these directives are expected to dismantle the monopoly of the NEA in power trading, mitigating single-entity risks and fostering a dynamic, open electricity market in Nepal.
