Abstract
The Andhi Khola Hydel and Rural Electrification Project (AHREP) was formally commenced in a June 1982 agreement between the United Mission to Nepal and His Majesty's Government of Nepal. It was established as a pilot project for the “development of appropriate technology and suitable methods and tariffs for rural electrification.” By virtue of its being a pilot project many novel innovations were implemented at AHREP. The focus of this paper is confined to a consideration of tariff. Its specific purpose will be to document field experiences resulting from the implementation of a peak-demand tariff. The unique contribution of this paper to the annals of rural electrification is that while much data in the literature is available regarding the consumption patterns of metered consumers, to the best knowledge of the author this is the first paper ever published summarising comparative data of metered and peak-demand consumers. The basic conclusion of this treatise is that technically speaking, experience with a peak-demand tariff at AHREP has been positive. This paper specifically demonstrates the benefits of load-distribution-over-time achievable at the household level utilising current limiters and “two-tier” meters, and also the broader implications of such upon system load factors. Recognition of these benefits, of course, does not negate broader valid concerns including the potential theft of electricity, the reliability and accuracy of load monitoring devices, the uneconomical use of electricity, etc., to which a peak-demand tariff regime is indeed vulnerable. Despite these legitimate constraints, the author wishes to articulate the opinion via this paper that based upon actual and extensive field experience, the AHREP peak-demand tariff is worthy of documentation and consideration for potential duplication in a broader realm throughout Nepal – and with due sensitivity given to context, possibly abroad.
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