Tuesday 27th October 2020

Nepal Fiscal Budget 2020-21 Promises ‘Free Electricity’

This applies to household consumption less than 10 units 
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Nepal Fiscal Budget 2020-21 Promises ‘Free Electricity’

Here is good news for Nepalis in the country’s new fiscal budget for FY 2020-21!

Presenting the new budget, Finance Minister Yubaraj Khatiwada said households with consumption less than 10 units would get free electricity.

This will be a relief to around 800,000 Nepali households, who reportedly consume less than 10 units per month.

“To provide them with relief, the program of providing people consuming less than 10 units of electricity for free was introduced in the budget for the upcoming fiscal year,” the Minister for Energy, Water Resources and Irrigation Barshaman Pun said in a statement.

Pun adds that this decision aims to serve the poor and will be a relief to those unable to pay electricity bills.

Minister for Energy, Water Resources and Irrigation Barshaman Pun

According to the Ministry, the country has 4.1 million power-consuming households.

The new rules will be effective from July 16, 2020. Meanwhile, Nepal Government also decided to continue giving 25 percent exemption on power bills for all households until the lockdown ends.


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In a relief to the farming community, the government has announced an on-demand exemption on electricity usage for irrigation purposes.

Farmers with less than or equal to two bighas of land get this exemption on an individual and collective basis. In general, the government is also offering exemption on basic electricity fees totaled Rs 25 million.

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