Public Notification: Bhutan Electricity Authority, Thimphu

October 2 | Kuensel

BEA/CEO/BPC/2019-20/247

This is to inform that the Bhutan Electricity Authority (BEA) had received the following generation and end user tariff revision proposal from its licensees, Druk Green Power Corporation (DGPC), Mangdechu Hydroelectric Project (MHP) and Bhutan Power Corporation (BPC) for the tariff period 2019/2020 to 2021/2022.

Table 1: Proposed cost of generation and supply

Proposed Cost of Supply (Nu/kWh)
Druk Green Power Corporation
i) Generation Cost 1.70
Mangdechhu Hydroelectric Project
i) Generation Cost 3.91
Bhutan Power Corporation
i) High Voltage (HV) 2.24
ii) Medium Voltage (MV) 5.82
iii) Low Voltage (LV) 5.89
iv) Export Wheeling 0.316

The BEA based on the comprehensive review of tariff revision proposal and taking into consideration the comments received from the electricity customers/licensees during the public hearing held on 30th April 2019 as well as the written comments received thereafter, BEA approved DGPC tariff of Nu 1.42 per kWh and MHP tariff of Nu 3.77 per kWh and following average HV, MV, LV and Wheeling cost of supply as shown in Table 2 below.

Table 2: BEA approved BPC’s cost of supply

Average Generation Cost (Nu/kWh) BPC Network Cost (Nu/ kWh) Total Cost of Supply (Nu/kWh)
High Voltage (HV) 1.50 0.76 2.26
Medium Voltage (MV) 1.50 3.65 5.15
Low Voltage (LV) 1.50 3.56 5.06

In keeping with subsidy allocation principles of Domestic Electricity Tariff Policy 2016 (DETP), the Royal Government of Bhutan (RGoB) has approved the subsidy allocation of Nu 1,478.57 million per year to LV and MV customers with effect from 1st October 2019.

Accordingly, the per unit subsidy allocated to different block of Low Voltage (LV) consumers and Medium Voltage (MV) consumers are as shown in the Table 3 below.

Table 3: Per unit Subsidy to LV and MV consumers

RGoB subsidy per unit (Nu.)
1st October 2019 to 30th June 2020 1st July 2020 to 30th June 2021 1st July 2021 to 30th June 2022
Low Voltage
LV Block I (Rural) 0 -100 kWh 5.06 5.06 5.06
LV Block I (High landers) 0 -200 kWh 5.06 5.06 5.06
LV Block I (Others) 0 -100 kWh 3.78 3.78 3.78
LV Block II (All) 101 – 500 kWh 2.38 2.38 2.38
LV Block III (All) > 500 kWh 1.49 1.46 1.42
LV Bulk 1.00 0.96 0.92
Medium Voltage 0.86 0.65 0.45

Considering the BEA approved cost of supply and subsidy injection by the RGoB, the BEA is pleased to hereby announce the new electricity tariff of BPC for the period 1st October 2019 to 30th June 2022 as shown in Table 4 below.

Table 4: Approved BPC Tariff Schedule

unit Existing 1st October 2019 – 30th June 2020 1st July 2020 – 30th June 2021 1st July 2021 – 30th June 2022
Low Voltage
LV Block I (Rural) 0 -100 kWh Nu./kWh 0 0 0 0
LV Block I ( High landers) 0 -200 kWh Nu./kWh 0 0 0
LV Block I (Others) 0 -100 kWh Nu./kWh 1.28 1.28 1.28 1.28
LV Block II (All) 101 – 500 kWh Nu./kWh 2.68 2.68 2.68 2.68
LV Block III (All) > 500 kWh Nu./kWh 3.53 3.57 3.60 3.64
LV Bulk Nu./kWh 4.02 4.06 4.10 4.14
Medium Voltage
Energy Charge Nu./kWh 2.16 2.24 2.45 2.65
Demand Charge Nu./kVA/M 300 325 325 325
High Voltage
Energy Charge Nu./kWh 1.59 1.50 1.50 1.50
Demand Charge Nu./kVA/M 262 292 292 292
Wheeling Charges Nu./kWh 0.195 0.270 0.270 0.270

(Chief Executive Officer)

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