Two and a half decades have been forgone but the state-owned Nepal Electricity Authority (NEA) is still struggling ‘big time’ to deliver to its potential. This ‘wait and see’ principle in the power sector has accrued immense costs to the society throughout and is not forward looking at all. NEA’s performance is terribly low when gauged against basic energy indicators such as supply security and tariff rates given what can be achieved. High and persistent system losses, overstaffing, over-the roof- generation costs and high overheads are just some of the current problems facing NEA. Undoubtedly, the vertically-integrated power sector is a proven example of yet another failure story in the country. The ongoing planned power outages of 11 hours per day are certainly a wake-up call to restructure and remodel the electricity sector. Furthermore, the current model is not conducive towards a sustainable low carbon economy which every nation will have to eventually converge to in the future.
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