NEA did it again.

NEA has recently signed PPA with Nyadi Hydropower Limited, a subsidiary of Butwal Power Company (BPC). Nyadi Hydropower Limited is developing a 30 MW project in Lamjung district. According to the press release, NEA will buy energy at NPR 4.80 and NPR 8.40 per kWh during wet and dry season respectively. The developer is entitled to get three percent escalation for eight years.

This surprised me. The current standard PPA rates for wet and dry seasons are NPR 4.80 and NPR. 8.40 per kWh respectively. I have no issue at all. However, three percent escalation for 5 years is usually provided. There are many cases like this one. For example, Mistri Khola hydropower is entitled to get 15 escalations from date of PPA.

NEA never provides vital information like how PPA is calculated. When such information is hidden from public how we can not say that the officials of NEA are involved in corruption.


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