Kathmandu, December 24

With a target to reduce its loss and control leakage, Nepal Electricity Authority (NEA) has started signing performance contracts with the chiefs of regional offices and project managers. In the first phase, the power utility will sign performance contracts with regional chiefs and in the second phase it will complete the signing process with project chiefs.

According to NEA, loss reduction, leakage control, reducing administrative expenses, outstanding due settlement and increment in the number of consumers are the criteria of the contract.

Managing Director of NEA, Kul Man Ghising, has started the system of signing performance contracts with the division and project chiefs to enhance their output. Ghising signed on a contract paper with chief of Biratnagar regional office of NEA, Bajra Bhushan Chaudhari, at the eastern regional office of NEA today.

NEA expects the performance contracts to enhance the output of its employees and subsequently contribute in making NEA a financially strong institution.

NEA also informed that it will continue with the performance contract system with chiefs of the offices and projects in the future too.

As per NEA, it will provide cash incentive to chiefs of distribution centres if they are able to achieve at least 50 per cent of the target regarding loss reduction and outstanding due settlement.

On the occasion, Secretary of Ministry of Energy, Anup Kumar Upadhyaya, directed the NEA staffers to implement the rules and regulations effectively in their working areas. “We have strong rules and laws for loss reduction and leakage control, so you have to implement them effectively,” he stated.

As per data maintained by NEA, it faced 22.9 per cent loss till mid-July and it has targeted to reduce it to 20 per cent by the end of this fiscal year.