Nepal Electricity Authority (NEA)

Nepal Electricity Authority (NEA) (Nepali: नेपाल बिधुत प्राधिकरण) was established in 1985 AD (2042 BS) under the Nepal Electricity Authority (NEA) Act. 1984 AD, through the merger of the Department of Electricity of Ministry of Water Resources, Nepal Electricity Corporation (NEC), and related Development Boards.

Nepal Bidhut Pradhikaran was established with the objective of affordable power by planning, constructing, operating, and maintaining all generation, transmission, and distribution facilities in Nepal's power system both interconnected and isolated.

The major responsibilities of NEA are to recommend to the government of Nepal, long and short-term plans and policies in the power sector; to recommend, determine and realize tariff structure for electricity consumption with prior approval of the Government of Nepal and arrange for training and study so as to produce skilled manpower in the generation, transmission, distribution, and other sectors.

The NEA emerged from the consolidation of various electricity organizations in Nepal. This merger was critical for streamlining operations and enhancing service reliability in the electricity sector. Let's delve into the key aspects of NEA:

1. Formation and Background

   • Origin: Formed through the Nepal Electricity Authority Act, 1984.
   • Merger: Combined the Department of Electricity, Nepal Electricity Corporation, and related Development Boards.
   • Purpose: Addressed overlapping functions and inefficiencies in the previously fragmented system.

2. Primary Objective

   • NEA's main goal is to ensure the generation, transmission, and distribution of sufficient, dependable, and cost-effective electricity.
   • Responsibilities include the planning, construction, operation, and maintenance of all power system facilities in Nepal, both interconnected and isolated.

3. Core Responsibilities

   • NEA advises the Government of Nepal on short and long-term power sector plans and policies.
   • It is responsible for proposing and implementing tariff structures for electricity usage, subject to government approval.
   • NEA also focuses on training and education to develop skilled professionals in various sectors of power generation, transmission, and distribution.

4. Management Structure

   • NEA is governed by a Board of Directors, ensuring diverse and expert oversight.
   • The board includes members from the Ministry of Energy, Ministry of Finance, and representatives from commerce, industry, finance, consumer groups, and the power sector.
   • The Managing Director serves as the Member Secretary and Chief Executive Officer.

5. Provincial and Divisional Presence

   • NEA operates through provincial offices located in key areas such as Biratnagar, Janakpur, Kathmandu, Pokhara, Butwal, Surkhet, and Attaria.
   • Additionally, there are division offices in Hetauda and Nepalganj, further extending NEA's reach and operational efficiency.

Organizational Structures:

The organizational structure of the Nepal Electricity Authority (NEA) is a comprehensive framework designed to address the multifaceted aspects of electricity generation, distribution, and management within the country. The key components and functions of this structure:

Board of Directors and Managing Director

At the apex of the structure is the Board of Directors, overseeing the strategic direction of NEA. The Managing Director, positioned under the Board, is responsible for the executive management and day-to-day operations.

Directorates and Service Areas

NEA's organizational framework includes several directorates, each focused on different service areas:

1. Distribution & Consumer Services Directorate

   • This division is tasked with planning and technical services, material management, and monitoring & information systems.

2. Generation Directorate

   • This directorate handles large and medium generation operations and maintenance, offering technical support and development for new projects.

3. Transmission Directorate

   • Responsible for grid operations, system operations, and the development of both 400 kV and 220 kV transmission line projects.

4. Planning, Monitoring & Information Technology Directorate

   • Focuses on power trade, system planning, and economic analysis, ensuring that NEA’s operations are efficient and economically viable.

5. Engineering Services Directorate

   • Manages project development, environmental & social studies, soil, rock and concrete laboratory, and electro-mechanical design.

6. NEA Subsidiary Company Monitoring Directorate

   • Oversees project management and the administration of subsidiary companies.

7. Administration Directorate

   • Handles human resources, general services, legal matters, and recruitment.

8. Finance Directorate

   • Manages corporate finance and accounting, maintaining NEA’s financial health.

Provincial Offices

NEA maintains a strong regional presence with offices in key provinces such as Kosi, Madhesh, Bagmati, Gandaki, Lumbini, Karnali, and Sudurpaschim. Each provincial office manages local operations, ensuring regional energy demands are met efficiently.

Specialized Divisions

Several specialized divisions within NEA provide support across the organization, such as:

• Energy Efficiency & Loss Reduction Department
• Internal Audit Department
• Project Management Department
• Social Safeguard and Environment Management Department

Committees and Sections

The Audit Committee is a vital part of NEA's governance, providing oversight and ensuring transparency. Additionally, various sections for finance, administration, and monitoring support the organization's operations.

Overall, the NEA's structure is designed to be dynamic and responsive to the needs of Nepal's power system, ensuring that all citizens have access to reliable and affordable electricity.