This volume presents a country case study of Nepal carried out by ARTEP as the implementing agency of the Regional Energy Development Programme (REDP) Phase II Activity A.l "Energy Pricing Strategy" of the Economic and Social Commission for Asia and the Pacific (ESCAP) being funded by the UNDP. Under this programme detailed studies were commissioned for five different countries including India, Nepal, Philippines, Sri Lanka and Thailand. The studies vary in scope and coverage but are all broadly directed towards the same objective: to critically examine energy pricing strategies and to identify alternative strategies which can meet multiple criteria, including economic efficiency, the basic energy needs of the poor, employment generation, containing inflation and other conservation and substitution objectives.