When the government has appointed Kul Man Ghising a year ago for his second tenure as MD of Nepal Electricity Authority (NEA), NEA was in a terrifying position with an almost 50 percent decline in profit and escalating electricity loss.
However, MD Ghising changed the situation in one year increasing the profit of NEA by 164 percent and reducing the electricity leakage drastically.
Nepal Electricity Authority has increased its profit by 164 percent with a total profit of Rs.16 billion and electricity leakage has declined to 15.38 Percent.
Although MD Ghising does not have a magic stick, what he has is management capacity which he proved in his first four-year tenure ending decades of year load shedding and making bankrupt NEA a profit-making public entirety.
As Nepal Electricity Authority is celebrating its anniversary on August 17, NEA’s recently released financial statement showed a miracle in profit.
During the year 2077/78 fiscal year, NEA made a net profit of Rs.6.1 billion rupees limiting its profit. However, the profit of this fiscal year 2078/79 is Rs/16.09 billion.
According to MD Kul Man Ghising, NEA’s annual transaction in 2078/79 reaches over Rs.100 billion. Following this, NEA is now turned into as highest earning and profit-making public entity in Nepal. The consumption of electricity has increased by 27 percent, export increased, and 16 percent electricity generation increased from NEA’s powerhouses and declining leakage helping to swell annual income,” said MD Ghising.
NEA had a net loss of Rs.8.89 billion in the fiscal year 2072/73. Since that NEA has been making a profit each year. In the fiscal year 073.74, NEA made a net profit of Rs1.50 billion. In the last year of the first four-year tenure in 076/077, NEA’s profit was Rs/11.75 billion. However, NEA’s profit declined to Rs.6.1 billion in 2077/078.
Ghising said that the quality and dependable supply of electricity has now directed impacts on NEA’s financial position. NEA has also offered about Rs. 980 million discounts to the consumers who paid the tariff on time. NEA has made Rs.87 billion net income from selling electricity. This amount is 22 percent higher than the previous year.
MD Ghising also said that electricity leakage has also reduced to 15.38 percent from 17.18 percent in the previous year.
When MD Ghising took the charge as an MD in 2072/73, the leakage was 25.78 percent. When he left completing four years in 2076/77 it declined to 15.25 percent.
In his one-year absence in 2077/78, leakage has increa
sed to 17.18 percent.
After taking several effective steps, NEA is able to reduce 1.80 percent fixing it to 15.38. MD Ghising said that NEA has made about Rs. 2 billion from controlling the leakage. He said that NEA will launch more effective steps to reduce electricity theft and improve the quality of supply by installing transforms and distribution lines in the coming years. This will further reduce the leakage.
Electricity Import Decline and Export Increase
During the fiscal year 2078/79, the export of electricity to India has increased. NEA has been exporting electricity from 364 MW to 400 MW daily.
During 2077/078, Nepal exported 44 million units or (44 Gwh) of electricity. In 2078/79, NEA exported 493 million (493 Gwh) of electricity to India. NEA has already earned Rs.3.88 billion from export.
Despite increasing the domestic consumption of electricity by 21.28, NEA was able to reduce the import. NEA has imported 2806 Gwh of electricity worth Rs.2.80 billion in the fiscal year 2077/78 to meet the domestic demand. This fiscal year, Nepal imported 1543 Gwh worth Rs.1.54 billion.
Nepal imported Rs.21.82 billion worth of electricity in the fiscal year 2077/78. This year Nepal imported electricity worth Rs.15.45 billion. NEA was able to reduce the import by 9.49 in its system.
MD Ghising said that Nepal’s net import of electricity will end from the coming fiscal year and start net export. Pick demand for electricity was 1747 in the 2078/79 fiscal year and electric consumers reached 5.3 million.
With support from all his staff and backing from Minister Pampha Bhusal and other officials from the Ministry, MD Ghising has taken several reforms and effective programs to make the highest profit in the first year of his second tenure.
As he promised on his first day of the second tenure, MD Ghising has proved in a span of 12 months that he means business and truth. Despite criticism by his critics terming his announcement as populist, MD Ghising proves what he means.