CIAA to NEA: Stop supplying power to staff for free

KATHMANDU, NOV 22 -

The Commission for Investigation of Abuse of Authority (CIAA) has directed the Ministry of Energy and the Nepal Electricity Authority (NEA) to stop supplying free electricity to its employees.

The NEA has been distributing 125 units of electricity in the rainy season and 75 units in the winter season to its 9,107 staffers for the last nine years even when its financial health has been deteriorating. “The NEA’s decision to provide free electricity to its staff cannot be considered fair and justifiable. Hence, the NEA board has been told to scrap this facility immediately,” said the CIAA in a directive issued on Monday. Implementation of the CIAA’s order will result in a saving of 1.125 million units of electricity monthly. As per the current electricity tariff, the free electricity that NEA has been providing to its staff costs Rs. 10.6 million per month.

The state-owned power utility incurred a net loss of Rs 6.51 billion in fiscal 2010-11, and its accumulated loss has touched Rs 27.53 billion as of the end of the last fiscal year. “The overall picture and trend of the financial condition by the end of the fiscal year 2010-11 is crippling and asks for an immediate review of the retail tariff and effective financial restructuring for the sustainability of the organization,” said the NEA in its latest annual report.

The CIAA said the NEA’s decision to distribute free electricity to its staff was against the government’s policy formulated with the view of addressing the energy crisis. The directive was based on the earlier government’s decision.

The government, while declaring  an energy crisis on March 23, had decided not to provide free electricity to NEA staff and scrap special facilities granted by earlier governments. Similarly, the anti-graft body had asked the NEA to make public the names of those involved in stealing electricity including the names of their fathers and grandfathers.

Source: Kantipur