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Contents Complimentary Copy A YEAR IN REVIEW- FISCAL YEAR-2013/2014 Contents Complimentary Copy Message from the Chairperson 2 Board of Directors 3 Corporate structure of NEA 4 Deputy Managing Directors 5 Managing Director's Report 6 Generation Directorate 12 Transmission Directorate 25 Distribution and Consumer Services Directorate 35 Planning, Monitoring and Information Technology Directorate 53 Engineering Services Directorate 57 NEA's Subsidiary & Associate Companies 70 Central Activities 77 Administration Directorate 79 Finance Directorate 81 Highlights of FY 2013/2014 84 Balance Sheet as of July 16, 2014 85 Income Statement for FY ending July 16, 2014 86 Significant Accounting Policies 87 Tariff Rates 90 Statistics, Schematics and Maps 93-108 Front Cover Photo: PowerHouse area of Chameliya Hydroelectric Project Back Cover Photo: Dam of Chameliya Hydroelectric Project. NEPAL ELECTRICITY AUTHORITY Head Office: Durbar Marg, Kathmandu, Nepal Phone: +977-1-4153007/4153013, Fax: +977-1-4153009 Email: [email protected] Website: www.nea.org.np Nepal Electricity Authority 1 A YEAR IN REVIEW- FISCAL YEAR-2013/2014 Message from Chairperson It makes me really happy while expressing my thoughts as Nepal Electricity Authority (NEA)'s Chairperson on the occasion of its 29th anniversary. I want to convey my best wishes to all the employees of NEA and its consumers alike on this jubilant day. As a predominant player in the country's power sector, NEA has a crucial role to play to provide adequate and reliable electricity services to its consumers at an affordable price. Although with the introduction of Nepal Electricity Act, 1992, the country opened its power sector for private sector investment, and accordingly, a number of independent generation companies have added capacity of the Integrated Nepal Power System since then, NEA, being the sole state owned power utility, has a special position in country's power sector. In fact, sustenance of IPPs depends on NEA's health. Apart from energizing industries and other economic operations, NEA also serves as a medium in order for the Government to meet its obligations of equitable supply of electricity to as many consumers as possible by way of mainly rural electrification. Today, everyone of us involving in power sector is not in a comfortable position. Persistent load-shedding is really a bugbear. Although the problem might not have been solely due to our doings, it is now our responsibility to get rid of it. Whatever comes on our way, we must gird our loins to face it. The Ministry of Energy is preparing to establish a national Transmission Grid entity in order to prepare a non-discriminate highway for all power producers. Establishment of a power trading company may also be required soon in order to smoothen the process of power trading including the trading through long-term power purchase agreements. It has become almost certain that in a monsoon-hydro dominated power system as ours, trading and/or exchange of power with neighbouring country is inevitable. We are constantly working towards to conclude a power trade and transmission connection agreement with India. It is always good to start a work with considerable amount of discussion, but such discussion and debate should also have their limits. I feel that we already wasted valuable time in debating as to what is proper and what is not. They are segregated clearly when we start real work. We are again working on the new Electricity Bill and Nepal Electricity Regulatory Commission Bill, which remained in the previous parliament for a considerable length of time. We expect that great reforms will find their ways once these bills are enacted. We are prepared to make necessary decisions in order to remove all obstructions in the way to enhancing reliable and affordable electricity supply. In return, we want that no one questions NEA's project implementation capacity. Almost all of NEA's generation and transmission line projects that are under construction have undergone severe time overrun or cost overrun or both. Loss reduction is yet another area in which, I think, NEA should work hard. I see no reason why NEA's employees cannot overturn such situation. In the end, I would like to assure that a reform process by no means should adversely affect any one of NEA employees. I wish to congratulate all the NEA staff for their sincere efforts while performing their duties so far, and once again, wish that they would be successful in quest of their personal as well as organizational bright future. (Radha Kumari Gyawali) Minister for Energy Government of Nepal and Chairperson, Nepal Electricity Authority 2 Nepal Electricity Authority A YEAR IN REVIEW- FISCAL YEAR-2013/2014 Board of Directors Board of Directors Chairperson Radha Kumari Gyawali Minister for Energy Member Member Mr. Rajendra Kishore Kshatri Secretary, Ministry of Finance Member Secretary, Ministry of Energy Mr. Santosh Narayan Shrestha Member Member Member Mr. Laxman Prasad Agrawal Mr. Manoj Kumar Mishra Mr. Suraj Lamichhane Member Secretary Mr. Ram Chandra Pandey Officiating Managing Director, NEA Nepal Electricity Authority 3 A YEARINREVIEW- 4 NEPAL ELECTRICITY AUTHORITY Nepal ElectricityAuthority Organization Structure FISCAL YEAR-2013/2014 Revised Organizational Structure of Nepal Electricity Authority NEA Board Audit Committee Managing Director Internal Audit Department L-11 Acc. MD'S Secretariat, NEA Subsidiary L- 11 T Companies Loss Reduction Division L-10 Electrical Distribution & Consumer Generation, Planning , Monitoring & Engineering Services, Administration, Finance, Services, DMD L-12 T DMD L-12 T Transmision, Information Technology, DMD L-12 T DMD L-12 A DMD L-12 A DMD L-12 T Grid Operation Planning & Technical Generation Operation & Biratnagar Regional Department, Power Trade Department, Project Development Services Department, Office, L-11 T Maintenance Department, Department, L-11 T L-11 T Human Resource Accounts Department, L-11 T L-11 T L- 11 T L-11 Acc. Janakpur Regional Grid Development Department, Community & RE Office, L-11 T Generation Development Information Technology L-11 Adm. Department Department, Environment & Social Department, L-11 T Department, Study Department, L-11 T L-11 T Hetauda Regional Office, L-11 T L- 11 T General Service Corporate Finance System Operation Department, Finance Division, L-11 T Department, Department, L-11 Adm. L-11 Acc. L-10 Acc. Technical Support System Planning Department, Department, L-11 T Soil Rock and Concrete Kathmandu Regional L-11 T L-11 T Laboratory, Legal Department, Office, L-11 T Major Transmission L- 11 T .L-11 Adm Administration Division, Projects 400kV Major Generation Corporate Planning & L-10 Adm Construction Projects* L- 11 T Butwal Regional Office, Monitoring Department, L- 11 T NEA Training Centre, L-11 T L-11 T L- 11 T Material Management Div, Major Transmission Recruitment L-10 Electrical Administration Division, Projects 220kV Department, Pokhara Regional L-10 Adm L- 11 T Economic Analysis Electromechanical Design .L-11 Adm Office, L-11 T Department, L-11 Adm/Misc. Division, Monitoring & MIS Administration Division, Section, L-9, Electrical Finance Division, L- 10 Electrical L-10 Acc L-10 Adm Nepalgunj Regional Office, L-11 T Monitoring & MIS Finance Division, Administration Section, Section, L-9, Electrical L-10 Acc L-9 Adm Attaria Regional Office, Finance Section, L-11 T Monitoring & MIS Section, L-9, Electrical L-9 Acc Note : * Major Generation Construction Projects will be defined by the Board. T = Technical Services; A = Administration Services: Adm = Administration Group: Acc=Account Group A YEAR IN REVIEW- FISCAL YEAR-2013/2014 Deputy Managing Directors Deputy Managing Directors Mr. Birendra Kumar Pathak Mr. Ram Chandra Pandey Mr. Subash Dahal Deputy Managing Director Deputy Managing Director Deputy Managing Director MD's Secretariat Distribution & Consumer Services Directorate Planning, Monitoring & Information Technology Directorate Mr. Sher Singh Bhat Mrs. Gosai K.C. Mr. Sunil Kumar Dhungel Deputy Managing Director Acting Deputy Managing Director Deputy Managing Director Generation Directorate Administration Directorate (On Deputation to Tanahu Hydropower Ltd.) Mr. Lekha Nath Koirala Mr. Kanhaiya Kumar Manandhar Mr. Lila Nath Bhattarai Acting Deputy Managing Director Officiating Deputy Managing Director Finance Directorate Officiating Deputy Managing Director Transmission Directorate Engineering Services Directorate Nepal Electricity Authority 5 A YEAR IN REVIEW- FISCAL YEAR-2013/2014 Managing Director's Report On the occasion of 29th anniversary of the founding of Nepal Electricity Authority (NEA), it is my pleasure to report on the activities of NEA over the past fiscal year 2013/14. Our efforts during the past fiscal year continued in aiming to function NEA on a sound commercial basis so as to make it capable of undertaking future challenges of development, and to provide our valued customers electricity of acceptable quality and affordable price. NEA is no more the sole player in the country’s power sector. With the emergence of the private sector enterprise, particularly in electricity generation, it is imperative that NEA improve its operational efficiency not only for its sustenance but also equally if not more for the development of Nepal’s power sector. On this occasion, I would like to take this opportunity to affirm our commitment to perform better and deliver better results in the days to come. With this note, I now present my report on the activities of NEA during past fiscal year 2013/14. Operational Performance The annual peak power demand of the Integrated Nepal from the IPPs, operation of costly diesel plants and all Power System (INPS) in fiscal year 2013/14 is estimated possible import under power exchange agreement and to be 1,201 MW, with 410 MW power estimated to power trade with India. Till the supply capability of NEA have been shed. Out of the 791 MW of power actually power system is substantially improved, I regret to say supplied, 436.4 MW was contributed by NEA hydro, 22 that load shedding is NEA’s compulsion.
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