NEA is in profit by exploiting Nepalis, not by exporting electricity: Former minister Gyawali

Biratnagar / July 18: Former minister and energy expert Dipak Gyawali has emphasized the urgent need to pass the electricity bill, which has been pending for 12 years with 126 amendment proposals.

During a discussion on the power crisis held by the Industry Association Morang, Gyawali stressed the need for a revised act to ensure regular and high-quality production, transmission, and distribution of electricity in the country.

Gyawali said that Nepal Electricity Authority (NEA) should not have a monopoly over all sectors of electricity generation, transmission, and distribution. He argued that although the private sector is also involved in electricity production, its Power Purchase Agreements (PPAs) are managed by the NEA, creating a monopoly in the production sector.

Gyawali suggested that the electricity purchased by the private sector should be made available to other private sectors, especially to industrial sectors. He believed that the regularity and quality of electricity would improve if the responsibility for distribution was transferred from the NEA to other agencies.

Gyawali highlighted the challenges faced by industrialists and general consumers due to irregular and poor-quality electricity supply, noting that the current law only considers electricity as intended for illuminating houses.

He pointed out that the purpose of electricity extends beyond just lighting homes, emphasizing the need for a new Electricity Act to address these issues. Gyawali emphasized that the law should not be enacted hastily, and a nationwide discussion should precede its passage.

According to him, in the fiscal year 2022/23, Nepal purchased electricity worth Rs 19.44 billion from India and exported electricity worth Rs 10.45 billion to India.

Despite a trade deficit of Rs 8.99 billion, the NEA made a profit of 24 per cent in the same year. Gyawali raised concerns about how the authority managed to benefit from such a significant trade deficit.

He accused the NEA of exploiting Nepali citizens by offering cheap prices to India and charging higher prices to Nepali industrialists and consumers.

Rakesh Surana, president of the Industry Association Morang, highlighted the challenges faced by the industrial sector due to sudden power outages, questioning why Nepal experiences electricity disruptions from minor inconveniences such as light rain or a brief storm, unlike other countries where power outages are typically caused only by major natural disasters.