October 13: The Electricity Regulatory Commission has directed Nepal Electricity Authority not to charge any kind of fine or penalty to the hydropower companies with the capacity of 10 Mega Watt in case of reduction of electricity generation due to natural causes.

The commission gave such directive to the NEA after it did not comply with the existing legal provisions.

The promoter company normally sign a power purchase agreement with NEA to provide a certain amount of electricity in a month. The company has to provide at least 80 percent electricity to the NEA as per the commitment within the stipulated time. If the company fails to provide electricity, they will have to pay fine to NEA. But the commission has made it clear that the NEA should not charge any fine in case the company fails to provide electricity as promised due to natural calamities.

It has been directed not to charge any fine in case of damage to the transmission line or substation due to floods, landslides, earthquake and other out of control conditions.