Kathmandu. KATHMANDU: Nepal Electricity Authority (NEA) has sought proposals from interested service providers to ease and simplify the electricity tariff collection process.

It has urged the firms working through electronic means to submit proposals for the necessary facilitation for the collection of fees. The authority will require a certificate of registration and renewal of the service provider, a certificate of obtaining a license from the payment service provider from the Nepal Rastra Bank to carry out transactions through electronic means.

Similarly, income tax and value added tax, tax clearance certificate up to the last fiscal year, memorandum of association and regulations of the service provider organization will also have to be submitted. You will have to self-declare that you are not legally ineligible for the proposed service. A commitment letter to submit bank guarantee as prescribed by the NEA, a commitment letter to collect electricity through electronic means for the customers of the remote areas, a commitment to maintain the confidentiality and security of the income data of the authority through the technology adopted by the service providing organization are required.

With the approval of the Authority to deposit the collected amount in the bank account as prescribed, maximum facilities should be provided for the collection of the collected amount through various means necessary and in operation for the payment of duty. The service provider organization will also have to submit the details of at least five subject-wise technical skilled human resources.

The proposer shall mention the details of the scope of the proposal while submitting the proposal. The service provider will have to provide details of network and agencies, provisions to link the service provider to the income system of the Authority and details of software and equipment to be provided by the service provider to the Authority. Details regarding the modalities and procedures to be worked by the service provider in coordination with the Authority and the time, method of depositing the collected amount with the Authority and its security will be required.

As per the NEA’s notice, the service will be provided free of cost to the customers who pay up to five hundred rupees. Similarly, the limit has been set to charge only five rupees per transaction for the customers paying tariff between five hundred and one to five thousand rupees. According to this proposal of the authority, the service provider will have to fix the fee.

Similarly, customers paying Rs 5,000 to Rs 10,000 will have to charge only Rs 8 per transaction. Similarly, a maximum of Rs 10 service charge can be charged for every transaction above Rs 10,000. The service provider will have to fix the fee based on the proposed service charge fixed by the authority. The bank has to come to the agreement within 15 days of the information given by the authority that the proposal of the service provider has been approved. For the security, the bank should keep a bank guarantee with a minimum term of one year from a commercial bank worth one crore rupees.

The bank will not be allowed to collect more than the amount deposited on a daily basis. The service provider will not be charged any service charge from the Authority while collecting the tariff. In case of any dispute between the service provider and the authority, a dispute resolution committee shall be formed under the chairmanship of the Director designated by the Board of Directors. The committee comprises a deputy executive director of the authority, director of the legal department and a representative appointed by the service providing organization. Similarly, the director of the Institutional Finance Department will be the member-secretary.