Nepal Electricity Authority (NEA) has said that it was able to reduce electricity leakage by 2.45 percentage points in the last fiscal year 2017-18.

As per data released by NEA, it was able to meet its target to reduce the leakage of electricity. NEA had earlier set a target to reduce electricity leakage from 22.90 per cent to 20.45 per cent of the total electricity supply in the last fiscal. According to NEA, the 20.45 per cent electricity leakage figure is the lowest in NEA’s history.

At present, NEA loses 5.5 per cent of electricity through leakage in its transmission system and 14.5 per cent through its distribution system.

“In this fiscal, we plan to reduce the electricity leakage by 1.95 percentage points to 18.5 per cent, however if possible we will try to bring it down to around 15 per cent,” said Kul Man Ghising, managing director of NEA.

Currently, NEA has started taking strict action against electricity theft and has become more stringent in collecting dues. It has also installed high-capacity transformers, and upgraded the transmission and distribution system and substations to reduce electricity leakage.

In the last fiscal 2017-18, NEA was able to earn net profit of Rs one billion (unaudited). NEA has forecast to earn net profit of Rs 1.1 billion in this fiscal. In the last fiscal, NEA earned operating profit worth Rs 7.86 billion.

“After we complete the final audit, we will able to know the real net profit figure,” said Ghising.

As per Ghising, NEA was able to generate profit due to the end of load-shedding, reduction in the average price of imported and domestic electricity, control of administration and technical expenses, and implementation of financial reform measures.

According to NEA, it was able to save Rs four billion through control of electricity leakage.

In fiscal year 2016-17, NEA had forecast that it would face net loss of Rs 978.9 million but after the final audit, it actually made net profit of Rs 1.51 billion. However, it still has cumulative losses worth Rs 28.12 billion.

“In fiscal 2015-16, before I was appointed the managing director, NEA had faced a loss of Rs 8.89 billion, but now we have started generating net profit,” he stated.

Meanwhile, NEA expects to complete the construction of 14-megawatt Kulekhani-III, 60MW Upper Trishuli Three A, and 456MW Upper Tamakoshi hydropower projects by this fiscal.

“The country’s economic activities gained momentum after we were able to end load-shedding. Now we are more focused on upgrading our services,” Ghising added.