Electricity regulation in Nepal began with the enactment of the Electricity Act, 1994, which established a tariff fixation commission responsible for setting consumer electricity tariffs. Subsequently, the Hydropower Policy, 2001 envisioned a regulatory authority for the electricity sector. The enactment of the Electricity Regulatory Commission Act, 2017, and the Electricity Regulatory Commission Rules, 2018, provided the legal basis for the establishment of the Electricity Regulatory Commission. This full-fledged regulatory body is tasked with maintaining the balance between the demand and supply of electricity by simplifying, regulating, systematizing, and ensuring transparency in the generation, transmission, distribution, and trade of electricity.

The Commission also regulates electricity tariffs, protects the rights and interests of electricity consumers, and aims to make electricity service reliable, accessible, high-quality, competitive, and safe. Electricity Regulatory Commission (Commission) is the autonomous and independent regulatory authority responsible for regulating overall Nepal's electricity sector. ERC was established on May 9, 2019, pursuant to Electricity Regulatory Commission Act, 2017 and Electricity Regulatory Commission Rules, 2018. Commission operating as an autonomous and organized regulatory body represents a significant milestone in Nepal's journey toward a well-governed and sustainable electricity sector.

Mission

In order to improve the quality and reliability of electricity services and to increase transparency and accountability among the stakeholders related to the power sector, formulate and implement regulatory instruments specified in the prevailing laws and regulations. Necessary advice and advice to the Government of Nepal on policy reforms to make the distribution or trade arrangements reliable and effective

Vision

To make electricity generation, transmission, distribution or trade simple, regular, systematic and transparent, to balance the demand and supply of electricity, to regulate electricity tariff, to protect the rights and interests of electricity consumers, to make electricity market competitive and to make electricity service reliable, accessible, quality and The vision of this commission is to make it safe and establish it as a successful regulatory body of Nepal's power sector.