NEA's net profit jumps to Rs 7.2 billion

Published On: August 14, 2019 03:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug 14: Nepal Electricity Authority (NEA) has earned a net profit of Rs 7.2 billion in the Fiscal Year 2018/19. In the previous fiscal year, the NEA's profit was Rs 2.9 billion. It means the NEA increased its profit by 149 percent in the fiscal year. However, the authority is sitting on Rs 15.22 billion cumulative loss.

The authority has been earning profit and reducing its cumulative loss in the last three years. In the Fiscal Year 2015/2016, the authority's loss was Rs 34.61 billion; in 2016/2017, it was Rs 28.17 billion; and in 2017/2018, it was Rs 25.59 billion.

Organizing a press meet on Tuesday, Minister for Energy, Water Resource, and Irrigation Barsha Man Pun said that the power leakage has been reduced to 15.32 percent in FY 2018/19 compared to 20.45 percent in FY 2017/18. The power leakage in FY 2009/10 was 28.91 percent.

According to NEA's Managing Director Kulman Ghising, the authority has been running campaigns to control power theft, control leakage, tighten payment of due bills, and improve the situation of distribution lines and sub-stations. All these initiatives have helped reduce power leakage, according to him.

The leakage is 11 percent on the distribution side and 4 percent on the technical side. "We have reached South Asian standard in controlling distribution leakage. Now, we need to focus on technical leakage," said Ghising.

The NEA which was making annual losses of Rs 8.89 billion in the FY 2015/16, has been making continuous profits after the appointment of Ghising as its managing director.

According to Minister Pun, number of consumers connected to the national grid has increased by 10 percent in the last fiscal year.

Pun said that a new electricity act is being formed to match the federal structure after discussion with stakeholders. He said that the country has aimed to end the use of petrol, diesel, cooking gas and replace it with the use of electricity.

"We are about to finalize the criteria for establishing vehicle charging stations to encourage electric vehicles," said Pun. He said that the government is also planning to formulate policy to promote electric cooking in every household.

Pun said that to make Kathmandu wireless, preparation for underground wiring is going on. “We have already selected the contactor and the initial preparation has already started,” said Pun.

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