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Pricing of Electricity

Pricing of Electricity

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This study is a comparative study of pricing the electricity between Norway and Nepal. The study endeavors to describe and analyze, and by doing so, to contribute to the knowledge of pricing in one developed nation and in one developing nation. In order to tackle this general purpose, two theoritical perspectives have been applied namely:the technical perspective and the institutional perspective. Each country in this study is represented by the case of major companies. Statkraft from Norway and Nepal Electricity Authority (NEA) from Nepal are selected for the study. Qualitative research is chosen for the study and interviews are the main source of data collection. The findings of my study have revealed significant differences in pricing the electricity in countries involved. The case of Norway shows that electricity pricing is based on the dynamic approach where spot pricing is considered. On the contrary, the case of Nepal shows that electricity pricing is determined more or less on ad hoc basis, as it is very much influenced by government decisions and other actors present in the environment.