Clash of Energy ministry and NEA leads suffering of energy sector of the nation

Kathmandu December 15- A tussle between the Ministry of Energy (MoE) and the Nepal Electricity Authority (NEA) has taken its toll on the development of the country’s energy sector. The dispute couldn’t have come at a worse time when the country is reeling under a severe power shortage with the winter season setting in, and fuel shipments from India sharply cut due to the embargo.  

The sour relations between the line ministry and the authority has affected its functioning, and it has not been able to hold a board meeting for the past four months. As a result, various procurement processes, the signing of power purchase agreements (PPA), payments to contractors and extension of project deadlines, among other tasks, have come to a standstill.

The relations are so strained that the MoE does not even recognize Mukesh Raj Kafle as the managing director of the NEA, indicating that the dispute has been taken to a personal level.   
Moreover, the ministry has not bothered to consult the NEA regarding the government’s plan to declare an energy emergency and address the ongoing power crisis.

According to the NEA, the procurement of transformers and electricity meters, the supply of fuel for the construction of major projects including Upper Tamakoshi, and the construction of a 5-km road connecting the powerhouse of the Trishuli 3A Hydropower Project with the dam site, among other urgent tasks, have stalled due to the ministry’s non-cooperation.

Major tasks like the construction of the Khimti-Barhabise 220/400 kV and Barhabise-Kathmandu 220/400 kV transmission line projects, Barhabise substation, Dana-Kusma 220 kV transmission line and substation at Dana, Kusma and a distribution master plan for the NEA, among others, are awaiting clearance from the NEA board.