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Nepal Electricity Authority in deep trouble ?


Nepal Electricity Authority in deep trouble

While most of the state-owned enterprises are struggling to sustain themselves, there was positive news from the Nepal Electricity Authority (NEA). The state-owned power utility has maintained steady profit for eight consecutive years, significantly reducing leakage to 12.73%. It has stated that it limited electricity theft and technical losses to approximately 12.73 percent in the last fiscal years. However, barely eight years ago, the NEA faced a leakage rate of 25.78 percent.

The success of NEA should serve lessons to all other state enterprises to ensure that they not only serve the people, but also stand as a commercially viable entity. The success of NEA is largely attributed to its Managing Director Kulman Ghising, who not only helped end the prolonged load-shedding crisis in the country, but also transformed NEA as an organization, paving the path to even start exporting Nepal’s surplus electricity to India and Bangladesh. One key lesson from the NEA’s success may be the right man in the right place. It was under Ghising’s leadership that the NEA earned a “Double A Plus” ICRA rating, reflecting the transformation of an organization once plagued by losses into a profitable entity.

It is disheartening to know now that the NEA is in loss of around 50 billion Rs after one month of Ghising’s forceful departure.

Please enjoy this satirical VDO before and after Kulaman’s departure.

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