Kathmandu, Oct 28 (IANS): Nepali authorities are encouraging consumption of more power by cutting electricity tariff by 2.84 per cent on average, as the South Asian country is generating a surplus of hydropower.

The Electricity Regulatory Commission has waived energy charges for households that consume less than 20 units per month, though they have to pay a minimum service charge of 30 NPR ($24) each month, reports Xinhua news agency.

For households consuming 150 to 250 units per month, the rate is cut by half rupee per unit to 9.5 NPR.

Reduced tariffs are offered as well for industries using more power, and the new measures come into effect on November 17 for a year, the Commission said.

"We have lowered the tariffs to promote the use of electric ovens at homes, promote electric vehicles and increasing use of electrical facilities for irrigating the farmlands," Dilli Bahadur Singh, chairperson of the commission, told the press, noting the rate for powering irrigation facilities is to be cut by 40.69 per cent.

Most households in Nepal's urban areas are using gas to cook foods.

According to Nepal Electricity Authority (NEA), the country currently has an installed capacity of some 2,000 megawatts (MW), but the nationwide peak-hour demand was just over 1,500 MW on Wednesday. In other times, demand for electricity drops to below 1,300 MW.

Nepal's proposal of selling surplus energy to India has not been accepted yet, said Suresh Bahadur Bhattarai, the NEA's spokesperson.