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Board gives nod to survey on NEA restructing

KATHMANDU, DEC 27 -

Nepal Electricity Authority (NEA) board has endorsed a organisation and management (O&M) survey of the state-owned power utility.

The NEA board meeting, chaired by Chief Secretary Lila Mani Poudel, on Tuesday approved the survey that was conducted with an aim to start organisational and financial restructuring of the NEA.

“The survey was endorsed after five-hours of deliberation,” said an NEA board member, “The board has decided to implement the report with some amendments.”

Submitted some five months ago to the NEA board, there were concerns over the implementation of the O&M survey with the NEA senior management opposing it for fear of losing their position. The report has also recommended the NEA to downsize its employees and consolidate different business groups under it to keep the state-owned power utility efficient, proactive and professional. The NEA at present has over 9,000 people on its payroll across the country.

The report has recommended the NEA reduce its 10 departments, each headed by a general manager, to eight. “Existence of separate units to carry out similar tasks will only delay work and create confusion,” says the report.

The NEA has long been criticised for its gigantic, yet unproductive staff size. Even after the write-off of losses worth Rs 28 billion last year, the state-owned enterprise’s loss for the 2011-12 period stood at Rs 8.55 billion.

NEA board member Tek Nath Acharya, who had headed the three-member survey team, said that he had already received the suggestions and will incorporate them in the report within a week and forward it to the board.

NEA Chairman Paudel also instructed for a probe into the probable tariff evasion by some of the consumers who are NEA’s top 100 largest consumers. “In suspension of tariff embezzlement, the NEA had presented a list of top 100 largest consumers to the board,” added the member, “While checking their consumption trend, serious discrepancies have been spotted in some of the consumers.”

According to him, Paudel has order to probe the matter and identify any of the NEA staff who had been involved in the case.

Posted on: 2012-12-27 09:11