NEA halves electricity leakage in eight years, boosts revenue by NPR 12 billion

KATHMANDU: The Nepal Electricity Authority (NEA) has made remarkable progress in reducing electricity leakage across its transmission and distribution systems, cutting the loss by half over the past eight years. This achievement, which not only improves operational efficiency but also generates substantial additional revenue, underscores NEA’s commitment to modernizing Nepal’s power infrastructure.*

In the fiscal year 2072/73 BS (2015/16), electricity leakage stood at a staggering 25.78 percent. However, through a series of strategic measures and rigorous implementation, NEA successfully slashed this figure to 12.73 percent by the end of the fiscal year 2080/81 BS. The reduction is significant, especially considering the initial distribution and transmission losses, which were 19.80 percent and 5.98 percent, respectively.

Breakdown of Leakage Reduction

As of the last fiscal year, transmission line losses have been reduced to 3.33 percent, while distribution losses have been brought down to 9.40 percent. This contrasts sharply with the figures from eight years ago when distribution losses alone accounted for 19.80 percent of the total electricity leakage.

The progress has been gradual but consistent. Electricity leakage dropped to 22.90 percent in 2073/74 BS, then further to 20.45 percent in 2074/75 BS, and dramatically to 15.32 percent in 2075/76 BS. Although there was a slight increase in leakage to 17.18 percent in 2077/78 BS, the NEA quickly addressed this issue, bringing the leakage down to 15.38 percent in 2078/79 BS and 13.46 percent in 2079/80 BS.

Leadership and Strategic Measures

Kulman Ghising, the Executive Director of NEA, has been a pivotal figure in driving these improvements. Under his leadership, the authority implemented a comprehensive strategy that targeted both technical and non-technical losses. Ghising emphasized the importance of a systematic approach, ensuring that the steps taken were not only effective in the short term but sustainable in the long run.

“Electricity leakage was a significant drain on our resources, leading to billions of rupees in lost revenue each year. The campaign we initiated to control both technical and non-technical leakage has yielded impressive results, particularly in reducing distribution losses. Our current leakage ratio is now lower than that of neighboring countries, which is a testament to our success,” said Ghising.

Financial Impact and Future Goals

The financial impact of reducing electricity leakage has been substantial. NEA reports that the reduction in losses has generated approximately NPR 12 billion in additional revenue over the past eight years. This newfound income has been reinvested into system expansion and improvements, further enhancing the efficiency and reliability of Nepal’s electricity grid.

Looking ahead, NEA is not resting on its laurels. The authority is now focused on reducing the electricity leakage rate to single digits, a goal that would place Nepal among the leading countries in terms of efficient power management. With continued investment in technology and infrastructure, coupled with effective leadership, NEA is well on its way to achieving this ambitious target.

The success story of NEA serves as a powerful example of how strategic planning, leadership, and targeted action can lead to significant improvements in national infrastructure, benefiting the economy and the population at large.