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Figure 26. Extent that high cost of power utilities hinders business growth
from Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth
5.4 High cost of power utilities
Electricity tariff in Nepal is one of the highest in the South Asian countries and this has impacted consumption by both the households and industrial sector.
Figure 26. Extent that high cost of power utilities hinders business growth
The Nepal Electricity Authority (NEA) is charging an average of Rs 10+ and Rs 30 per unit for households and industrial users, respectively even if the cost per unit for the state-owned power utility has come down to Rs 2 per unit (Republica 2021).
5.5 Weak price competitiveness
Nepalese SMEs are currently facing challenges to compete with imported products in the domestic market as well as in the international markets. In most sectors, Nepal’s exports are curbed by high costs.
