August 1, 2017
The state-owned power corporation Nepal Electricity Authority (NEA), which posted a net loss of Rs 8 billion in the fiscal year 2015-16, has been able to significantly reduce its losses in the succeeding year by increasing the power tariff and controlling power leakage.
The net loss of Rs 970 million, which represents a drop of 88 percent, was also achieved partly due to the increase of Rs 8 billion in the revenue over the Rs 34 billion posted in the previous fiscal year.
The Managing Director of the NEA, Kulman Ghising led a relentless drive to control energy leakage which resulted in savings of at least Rs 2 billion. According to Ghising, the weighted average tariff rate which increased by 9 percent contributed an additional Rs 5 billion to the NEA cash flow.
Reduction in the administrative expenses and imports of high-priced energy have also contributed to the NEA’s improved financial performance.