The revision in electricity tariff, scheduled July this year, will be implemented although the Chamber of Commerce and Industries and the Industrialists Association of Bhutan have requested the government to remove the raise.
Both the associations said the implementation of revised tariff would have wide ranging implication across the economy, with industries already on a downward spiral incurring huge losses today.
Economic affairs minister, Norbu Wangchuk said the government was handicapped when it came to removing the raise since it was the Bhutan Electricity Authority, an autonomous institution that fixes, approves, and announces the revision.
“There is a misconception that it is the government who fixes electricity tariff. The government does not have the authority to schedule electricity tariff. The Bhutan Electricity Authority, according to the electricity act and their own tariff determination regulation, fixes the rates.”
This means the raise in electricity tariff will continue till July next year after which the government, through a policy issue, hopes to intervene in fixing the rate taking account of the economic situation.
The policy, which is being prepared by the ministry, awaits a final discussion with the industries after which it will be implemented next year.
The minister also said that the Electricity Act 2001 would also most likely be amended in the coming session of the parliament.
“During the last parliament session, some National Assembly members raised the need to amend the electricity act. There were some deliberations and after that the house had commissioned a review of the policy and accordingly commissioned a committee. The committee would be submitting their report during the coming session.”
Even though electricity tariff will be revised, industrialists are still relying on a hope that the revision would be deferred till December, this year.
The president of the Association of Bhutanese industries, Sonam Tobgay said the revision would have serious implication on the economy.
Over a telephone interview, the president said, the revision was coming through during peak monsoon when activity in the construction sector would slow down.
Since the industries are already facing a difficult time, the revision would have serious implication on the overall health of the economy, the president said.
