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The Electricity Regulatory Commission (ERC) has decided to conduct a feasibility study for the development of a wholesale electricity market in Nepal. The 279th meeting of the ERC approved its annual plans and programs for fiscal year 2025/26.

According to ERC, the wholesale market would act as a bridge between producers, sellers and buyers of electricity, enabling direct energy trade and competitive pricing. It believes that such a platform will promote private sector participation, ensure long-term supply and make the power sector more competitive.

Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL) serve as wholesale electricity markets in India. Nepal Electricity Authority (NEA) has also been selling its surplus energy in the day-ahead market of the IEX. ERC officials say the feasibility study will examine legal and institutional frameworks, technological requirements, potential models for market development and phased implementation strategies. Based on the findings of the feasibility study, the ERC will develop a long-term policy roadmap and necessary regulatory provisions for the wholesale market.

The ERC has also approved plans to determine a cost-based, transparent structure for transmission and wheeling charges to promote open access and fair pricing. It is expected to improve power trade and attract investment in the energy sector.  The ERC has also said that it would also review the existing structure of Power Purchase Agreements (PPAs). The current PPA formats depend on the nature of the investment and there are separate PPA formats for projects developed by the private sector and government entities. The ERC plans to standardize the framework to ensure equal treatment for all investors.

It also plans to assess the actual cost of hydropower generation through a cost benchmarking study. The study will include analysis of river flow levels, discharge, and topography to estimate the likely cost of specific project types, giving investors clearer guidance on the viability of their investments. This will help formulate effective pricing strategies for electricity purchase agreements, according to the ERC. Likewise, it plans to verify and evaluate the technical and financial progress of hydropower projects through independent third parties or consultants. It also plans to introduce a distinct tariff structure for reservoir-based and other storage projects. 

With technologies such as pumped storage, battery storage, and reservoir-based hydropower playing an increasingly critical role in system stability and peak-time energy supply, the ERC plans to conduct technical, economic and regulatory studies to establish fair, transparent, and investment-friendly tariff rates. So far, no specific tariff structure exists for such projects. The ERC has also said that it would set clear criteria and justifications under which electricity can be curtailed or disconnected.

The Nepal Stock Exchange (NEPSE) plunged by 32. 00 points to close at 2, 728. 80 points on Monday. 

Similarly, the sensitive index dropped by 6. 18 points to close at 475. 00 points.

A total of 21,102,540-unit shares of 321 companies were traded for Rs 8. 17 billion.

Meanwhile, Mai Khola Hydropower Limited (MKHL) was the top gainer today with its price surging by 5. 90 percent. Likewise, Samudayik Laghubitta Bittiya Sanstha Limited (SLBSL) was the top loser with its price dropped by 4. 46 percent.

At the end of the day, the total market capitalization stood at Rs 4. 54 trillion.

In Madhes, climate change is reshaping daily life—from dwindling water sources to declining rice yields. Locals say they feel increasingly alienated from the very elements that once sustained them. “Neither the rice feels like ours anymore, nor the water,” many say, as the region struggles with dried-up springs, parched fields, and water scarcity so severe that families must walk miles just to fetch a bucket.

The crisis has intensified to the point that the Madhes government has officially declared the region a drought-hit zone. With no monsoon rains this year, paddy planting has been severely disrupted—deepening the struggles of a region that relies almost entirely on rain-fed agriculture. While the provincial government plans to request relief funds from the federal government, there is still no long-term strategy in place to address the growing water crisis.

“I remember when it used to rain nonstop for two months,” recalls 65-year-old Sumitra Sada from Mahottari district. “Back then, every man, woman, and child would be busy in the fields planting rice. But now the season has come and gone without enough rain. We try to pump underground water through borewells, but whenever we do that, the hand pumps across the village run dry.”

The crisis is not just environmental—it’s cultural. Traditional Madhesi meals, once celebrated for fragrant aged rice, homemade ghee, and fresh backyard vegetables, are disappearing. “Fifteen years ago, we used to store large quantities of aged rice for weddings and rituals,” says 75-year-old Bedananda Jha from Janakpur. “Now the granaries are empty. We’re forced to buy polished, tasteless rice from across the border.”

According to government data, Madhes currently produces 2.77m metric tons of paddy. But to meet national demand and reduce imports, the region would need to expand rice farming by nearly 190,000 hectares. Similar production gaps exist for corn and wheat, posing a serious threat to food security.

The region’s once-abundant water sources—rivers, hand pumps, and wells—are drying up. In places like Birgunj, groundwater levels have dropped so drastically that families must now dig as deep as 400 feet to install a hand pump, at a cost of over Rs 150,000. “Water that once came from 100 feet now requires machines and generators to access,” says local resident Umesh Mandal.

To cope, Birgunj Metropolitan City has begun distributing water through tankers and temporary tanks. But experts warn these are merely short-term fixes. “The water crisis will only deepen unless we invest in groundwater recharge and proper conservation,” says hydrologist Pratap Singh Tatar. “People used to share hand pumps; now each home wants its own. There’s no regulation on irrigation borewells, and water is being over-extracted without recharge.”

Only three percent of Madhes residents use piped water from the national utility, while over 70 percent depend on hand pumps and tubewells. But with groundwater levels falling even in rural areas, the future looks bleak.

Experts also point to the degradation of the Chure hills—once considered the “lifeline” of Madhes. Forests that used to absorb rainwater and replenish underground aquifers are being destroyed due to logging, grazing, and encroachment. As the hills go bald, less water flows down to the plains.

“If we fail to protect Chure, Madhes could turn into a desert,” warns environmentalist Vijaya Singh Danuwar. “Chure is our mother. It traps monsoon clouds and releases water gradually. Without forests, there’s no mechanism to hold or distribute the rain.”

Farmers across Madhes are being pushed to the brink. With unreliable rainfall and limited irrigation, they now spend up to Rs 500 an hour to pump water using fire trucks just to transplant rice seedlings. By early July last year, 45 percent of paddy planting was completed. This year, it’s just 25 percent.

Although irrigation coverage increased slightly to 273,410 hectares in 2023/24, most of it depends on canals, ponds, and borewells—many of which are now failing due to water shortages.

Once known as Nepal’s rice bowl, Madhes now struggles to feed itself. While the total area under cultivation may have grown slightly, yields have declined. Agricultural economist Devendra Gauchan blames climate change: “We’re seeing more droughts, heatwaves, floods, and pest outbreaks—all of which reduce productivity. This region, which once exported rice, now imports it.”

Experts say the water crisis in Madhes is not just a natural disaster, but a human-made one—driven by poor planning, unchecked groundwater extraction, climate change, and government inaction.

“We can’t stop climate change,” says hydrologist Tatar, “but we can minimize its effects. What’s happening in Madhes is a warning. If we don’t act now, the cost tomorrow will be unbearable—for food, for water, and for life itself.”

The price of gold has increased by Rs 400 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 193, 300 per tola today. It was traded at Rs 192, 900 per tola on Sunday.

Similarly, the price of silver has increased by Rs 35 and is being traded at Rs 2, 315 per tola today.