NEA’s Power & Profits
It is encouraging to note that Nepal Electricity Authority (NEA) was able to make a record high profit of Rs. 7.2 billion in the fiscal year 2018/19. The amount was 149 per cent higher than that of the previous fiscal year. NEA had earned just Rs. 2.89 billion as profit in the fiscal year 2017/18 while its profit had stood at 1.5 billion in the fiscal year 2016/17. The public enterprise (PE) had suffered a loss of Rs. 8.89 billion in the fiscal year 2015/16. However, NEA is suffering a cumulative loss of Rs. 15.22 billion. NEA has been able to achieve this through its initiatives to control power leakage, maintain fiscal discipline, and improve the situation of distribution lines and sub-stations. Managing director of NEA Kulman Ghising deserves the credit for improving the financial condition of this PE. He has earned a name with his reforms in the NEA’s management system and reducing losses. The nation has become free from power outage since he assumed office some three years back.
According to a news report published in this daily, Minister for Energy, Water resources and Irrigation Barsha Man Pun, who is also the chairman of the NEA’s Board, informed that electricity leakage was reduced to 15.32 per cent in the last fiscal year from 25.78 per cent in the fiscal year 2015/16. It is also worth mentioning that NEA deposited Rs. 15.59 billion, including Rs. 1.25 billion income taxes, Rs. 13.16 billion as interest of loans and Rs. 1.44 billion as royalty in the government’s account in the last fiscal year. Minister Pun added that the authority would make a major stride in electricity generation and its supply in the future.
NEA has completed the construction of 757 circuit kilometre lines and charged 606 circuit kilometres in the last fiscal year. Similarly, construction of about 9,722 circuit kilometres under the 33 KV transmission lines has already completed. It also built 40 new sub-stations and installed 6,581 transformers during the last fiscal year. The number of power consumers linked with the national grid shot up by 10 per cent to 78 per cent of the total households. Around 4.5 million households have now been linked with the national grid. With an annual increase in the demand for electricity in the domestic market, NEA, out of the total 7.55 billion units (GWh) of power being supplied, purchased 2.19 billion units worth Rs. 14.13 billion in the last fiscal year. Domestic private producers’ production and imported electricity accounted for about 2.81 billion units worth Rs. 23.03 billion. NEA was able to supply 2.55 billion units of electricity from its own production in the last fiscal year. Of the total supply, NEA’s contribution was 34 per cent while private producers’ 29 per cent. The remaining 37 per cent was imported.
It is good news that the country exported electricity worth 320 million during the last fiscal year. As the domestic power generation is expected to double by the next monsoon season, the country is going to become self-reliance in energy. Keeping this in view, NEA is working seriously to increase domestic power consumption and construction of more transmission lines to export power. It is developing charging stations for electric vehicles. When consumers are motivated to consume clean energy for transportation, cooking and other purposes, it will help reduce our huge dependency on imported fossil fuels and contribute to narrow down the widening trade deficit with India.