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NEA plans 15 pc hike in power tariff
Nepal Electricity Authority (NEA) has proposed an increase of electricity tariff by around 15 percent to gradually recover accumulated losses, reduce loss and create fund for hydropower development.
According to a report unveiled during the NEA's 23rd anniversary, NEA incurred a loss of 25.15 percent in the fiscal year 2007-08, which stood at 26.71 percent the previous year.
Arjun Kumar Karki, managing director of NEA said, "NEA earned Rs 15,405.03 million from sale of electricity in 2007-08, which is 6.61 percent higher than last year's figure. It earned Rs 655.24 million as other income."
NEA has incurred a net loss of Rs 1,312.16 million after deducting interest, foreign exchange loss and provisions. However, it earned a profit of Rs 314.19 million the preceding year. Accumulated loss by the end of 2007-08 has reached Rs 7,133.77 million.
The power demand has been growing at the rate of 11.31 percent. But NEA hopes the load shedding, which reaches up to 40 hours a week in winter, could be scrapped by next five years.
Source:www.nepalnews.com
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