Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha said on Wednesday that private companies will be allowed to enter electricity trading before Dashain, announcing in Kathmandu that the policy arrangements required for their participation are in the final stage. Preparations are under way to issue letters of intent (LOIs) and no-objection letters (NOCs) to private firms seeking to trade electricity, he said at a programme held at the ministry.
Policy arrangements near completion
Shrestha’s announcement points to a forthcoming opening of electricity trading to private companies, an area for which the minister said the necessary policy framework is nearing completion. He did not describe the specific provisions or say when the final arrangements would be formally approved. The timetable he gave was that private-sector participation would be permitted before Dashain.
The minister also said that the process of preparing LOIs and NOCs for private firms is under way. Those documents form part of the preparations to allow companies to participate in electricity trading, but Shrestha’s remarks did not identify the firms that may receive them or specify how many applications are being considered.
The announcement places the focus on two connected steps: completing the policy arrangements and preparing the letters required for private companies. The minister described the policy process as being at its final stage, while saying that preparations for issuing the letters are already in progress. His statement did not provide a separate completion date for either step beyond the commitment to allow private-sector entry before Dashain.
Private-sector entry expected before Dashain
The timeline is the central element of Shrestha’s announcement. By setting Dashain as the deadline for permitting private-sector participation, he indicated that the government intends to move from policy preparation towards allowing private firms to trade electricity within the stated period. The remarks, however, did not specify whether all the policy arrangements and letters would be completed on the same date or through separate stages.
Shrestha made the statement at a ministry programme on Wednesday in Kathmandu. He said private companies would be permitted to enter the trading process, while describing the work needed to enable that participation as close to completion. No detailed implementation schedule, list of eligible companies or explanation of the approval criteria was included in the announcement.
The distinction between the policy work and the preparation of LOIs and NOCs is important to the process outlined by the minister. The policy arrangements establish the framework for participation, while the letters are among the administrative steps being prepared for private firms. Shrestha’s remarks indicate progress on both fronts, but do not set out the remaining steps in detail.
Details of the process remain unspecified
The statement did not provide information on which companies have applied, what conditions firms would have to meet, or how electricity trading by private companies would operate. It also did not give details about the volume of electricity that could be traded, the market arrangements involved or the role of public agencies after private firms are permitted to participate. Those matters were not covered in the minister’s remarks as reported.
For now, the government’s stated position is that the arrangements are at the final stage and that preparations are being made to issue LOIs and NOCs to private firms. The announcement offers a timeline for opening the process, but further details on the rules and the companies involved have yet to be specified.
Shrestha’s commitment sets a deadline for the planned entry of private companies into electricity trading before Dashain. Whether the timeline is met will depend on the completion of the policy arrangements and the steps involved in issuing the letters. The minister did not announce a more precise date, but said the preparations are progressing toward the stated deadline.
