The government is showing a fine example of "good" governance by hiking the electricity charges in a nation that has widespread poverty and unemployment. The Nepal Electricity Authority is waiting for the right time to raise the tariffs by up to 30 percent, which the water resources ministry has already approved. The Council of Ministers has not decided on the tariff hike as yet. NEA sources say the decision has been deferred to prevent protests that could result from incitement by members of the ruling Nepali Congress party, which is now neck deep in electioneering. The ruling side does not want its opponents to use this as an issue.
Electricity generation is very expensive in Nepal, perhaps the highest in all of South Asia. Even in Bhutan, whose geography and economics resemble that of Nepal, the generation cost per megawatt is $1,300 while in Nepal it is $2,000. Still no one seems concerned. The opposition parties are good at shouting strongly worded slogans against price hikes and even force nation wide strikes. But they don't really look into the root to identify the real causes leading to the high prices.
The reason why they do so is because they have also been in government (and have an idea of the spoils). While they are in power, they also don't pass up a single chance to make extra change and thus have also indirectly contributed to the price hikes. The main reason why tariffs have to be increased is widespread corruption, kickbacks, and the recruitment and retention of excess staff.
The NEA has for long served as a place that water resources ministers have used to earn extra money. That's why all ministers who have taken charge of the ministry at any time in the past have to take the moral responsibility for what we're being forced to bear today.
The electricity leakage in Nepal is also among the highest in South Asia. In fact those giving clearances to expensive hydro-projects are also responsible for the tariff hikes. But as the saying goes "a thief will have the loudest voice"; no wonder they shout the loudest while protesting the tariff hikes.
Before complying with the Asian Development Bank's conditionality to raise electricity tariffs, it is very important that the government makes public the facts about electricity generation in the country. Any hike in tariffs would be considered okay only if the public understands and accepts arguments in its favour. If that were not done, all blame would fall squarely on the NEA and the government.