The Domestic electricity tarriff policy approved by the Royal government of Bhutan establishes guidelines for a sector considered as a priority in the country for poverty reduction and sustainable development.  

The policy aims at: 1) ensuring fairness to both service customers and service providers; 2) ensuring recovery of the actual cost of efficient business operation of electric utilities and enable investments in expansions; 3) providing affordable tariff to improve the quality of life of the people through targeted subsidy mechanism; 4) promoting transparency in tariff setting; 5) promoting conservation of the environment to ensure sustainability of the hydropower resource; 6) promoting sustainable economic and industrial growth.