NEA losses balloon to Rs 5.74 billion
KATHMANDU, AUG 18 -
Nepal Electricity Authority’s (NEA) losses net loss rose to Rs 5.74 billion in 2013-14 from Rs 3.71 billion in 2012-13. The accumulated loss reached Rs 19.31 billion as of last fiscal year-end.
The government had written off NEA’s accumulated losses worth Rs 28 billion three years ago in line with its financial restructuring plan, but its impact has so far been negligible. The power tariff was also hiked by 20 percent last year.
NEA says it started to face losses ever since it started purchasing power from Khimti Hydropwer Project in US dollar terms in 1999. The situation worsened following a similar agreement with Bhotekoshi Power Project.
NEA’s officiating Managing Director Ram Chandra Pandey, however, said the power utility was able to cut its system losses in 2013-14. “The system losses decreased to 24.79 percent in
2013-14 from 25.11 percent in 2012-13,” he said at NEA’s 29th Annual General Meeting (AGM) here on Sunday.
“This, we believe, is the result of our continued effort and measures taken to curb electricity theft. We are committed to intensifying our efforts to curb theft,” said Pandey, adding NEA was also able to recover Rs 42.5 million from blacklisted customers, and Rs 680 million from government offices. NEA spends the highest in purchasing electricity from independent power producers. Of its total operating expenses of Rs 28.87 billion last fiscal year, it spent Rs 16.38 billion in purchasing power —up 20 percent year-on-year.
Despite the heavy rise in expenses, its revenue from electricity sales grew by just 8.9 percent to Rs 27.62 million in 2013-14. Other income such as surcharge, interest income, lease rent, service charge and dividend, among others, contributed Rs 1.59 billion.
According to NEA’s annual report, the annual peak power demand in fiscal year 2013-14 is estimated to be 1,201MW. Of the total 791MW power actually supplied, 436.4MW was contributed by NEA Hydro, 22MW by NEA Thermal, 216.4MW by independent power producers and the rest 116.2MW was imported.
On the occasion, Energy Minister Radha Gyawali stressed the need for focusing on measures to end load-shedding within the next three years and curb corruption at NEA. “The vision I have taken of “Ujyalo Nepal, Sambriddha Nepal” can only be achieved by understanding our immediate needs and moving forward,” said Gyawali.
Chief Secretary Lila Mani Poudel said there is a serious need for focusing on increasing energy production, developing transmission lines, enhancing quality, reducing system losses and preventing leakage. Stating projects like Upper Tamakoshi, Upper Arun and Dudhkhola can be completed in time, he stressed on the need for focusing on things that are achievable. Energy Secretary Rajendra Kishore Kshetri, referring to the haphazard working style of the NEA board, said the ministry was working on “code of ethics” for changing the way the NEA board functions. “I giving my individual effort on it,” he said.
‘Won’t give up to pressure over Chilime’
Energy Minister Radha Gyawali said on Sunday she will not bow to the pressure of Rasuwa locals, who are demanding reinstatement of Kul Man Ghising, former Managing Director of Chilime Hydropower Company.
Gyawali said “promotion of anarchism” within a system “is not tolerable”, and added accusations against her are “baseless”. “A government staffer needs to obey the decisions taken by the government,” said Gyawali. “Promoting anarchism within a system will not take us anywhere. I won’t give up to the pressure being exerted in support of Ghising,” she said at the 29th annual general meeting of Nepal Electricity Authority (NEA).
Chilime locals and political parties, except for the CPN (UML), have been obstructing regular work at Chilime’s site office and construction of Chilime’s subsidiary projects demanding the reinstatement of Ghising. Ghising was called back to the NEA headquarters as per the NEA board’s decision. Apart from the NEA Employees’ Union affiliated to the CPN-UML, the party Gyawali represents, leaders of all other four trade unions, speaking on the occasion, slammed the minister for getting involved in less important matters sidelining major tasks.
Source: The Kathmandu Post
