NEA to save Rs 2.5bn
KATHMANDU: There is something to cheer for Nepal Electricity Authority (NEA), the power utility steeped in huge loss, as it has achieved substantial progress in loss reduction.
NEA has reduced leakage to 23 per cent in the first six months of this fiscal as compared to 27.78 per cent in the corresponding period of last fiscal, according to Kulman Ghising, managing director of NEA. “We have generated Rs 1.25 billion revenue from leakage control in six months of this fiscal and if we maintain this progress we will have additional Rs 2.5 billion revenue at the end of this fiscal from leakage control.” As per Ghising, NEA has been trying to control leakage to the best of its ability except for unavoidable technical losses.
The power utility has been losing around Rs 15 billion (as per the current tariff structure) every year through leakage. He also said that NEA is going to obtain a loan of $120 million from Asian Development Bank to enhance the distribution system to end load shedding in a sustainable manner. “Our distribution system in Kathmandu cannot bear a load of above 400 megawatts. This is why we are going to enhance the distribution system eyeing the electricity demand in Kathmandu in the future.”