Describe the objectives and thrust areas of the National Electricity Policy and the National Tariff Policy.

National Electricity Policy (NEP)

Objectives:

1. Access to Electricity for All: Ensure that all households and rural areas have access to electricity, with a focus on achieving universal electrification.
2. Supply of Reliable and Quality Power: Provide reliable and quality power to consumers at reasonable rates, with special attention to ensuring minimal disruptions and fluctuations.
3. Efficiency in Power Sector Operations: Promote operational efficiencies across the power sector to reduce costs and improve service delivery.
4. Financial Viability: Enhance the financial health of the power sector by reducing subsidies and ensuring cost-reflective tariffs.
5. Environmentally Sustainable Development: Encourage the adoption of environmentally sustainable practices and technologies in power generation and distribution.

Thrust Areas:

1. Rural Electrification: Focus on extending the grid to remote and rural areas to achieve 100% electrification.
2. Generation Capacity: Increase installed capacity through conventional and renewable energy sources to meet growing demand.
3. Transmission and Distribution: Strengthen and expand the transmission and distribution network to reduce losses and improve reliability.
4. Private Sector Participation: Encourage private investment in power generation, transmission, and distribution to enhance competition and efficiency.
5. Regulatory Reforms: Strengthen regulatory frameworks to ensure transparent and fair pricing, reducing political interference.

National Tariff Policy (NTP)

Objectives:

1. Ensure Availability of Electricity to Consumers: Provide electricity to consumers at reasonable and competitive rates.
2. Promote Efficiency: Enhance efficiency in the electricity supply chain to reduce costs and improve service quality.
3. Facilitate Competition: Promote competition in the power sector to drive innovation and cost reductions.
4. Financial Viability of Utilities: Ensure that tariffs are set in a way that utilities can remain financially viable while providing affordable power.

Thrust Areas:

1. Cost-Reflective Tariffs: Implement tariffs that reflect the actual cost of supply, reducing the reliance on subsidies and cross-subsidies.
2. Multi-Year Tariff Framework: Adopt a multi-year tariff framework to provide regulatory certainty and stability.
3. Promotion of Renewable Energy: Set preferential tariffs and policies to encourage the use of renewable energy sources.
4. Open Access: Facilitate open access in transmission and distribution to promote competition and provide consumers with the choice of suppliers.
5. Reduction of Cross-Subsidies: Gradually reduce cross-subsidies to ensure more transparent and equitable pricing.

In summary, the National Electricity Policy focuses on universal access, reliability, efficiency, financial viability, and sustainable development, while the National Tariff Policy aims to ensure affordable and efficient electricity supply, promote competition, and maintain the financial health of utilities through cost-reflective tariffs and regulatory reforms.