13,299 new homes added to the national grid last year
With the growing of the economy, the demand for the electricity consumption in the country for the domestic consumption has been increased according to the annual report of the Bhutan Power Corporation Limited 2014.
According to the annual report 2014 maintained by the corporation during the summer season the demand for the electricity reached up to 333.14 MW as compared to 314 MW in the previous year.
The addition has been mainly due to service connection of the rural home in the country side brought about by extensive rural electrification coverage made by the company. The report stated that during the year additional of 13,299 customers were added and today the company served more than 1, 59,796 customers.
To meet the domestic consumption of the power, BPC had purchased 2064.30 Million Units ( MU) of energy from Druk Green Power Corporation Limited ( DGPC) during the year as compared to 1,901.73 MU during the previous year, according to the report.
The report further stated that of the total purchases, royalty energy accounted for 1059. 2 MU for the year as compared to 1,116.03 MU in the previous year. The internal generation from embedded mini and micro hydro owned by the company was 16.699MU during the year.
The total sale for the year was 1,977.182 MU as compared to 1,841. 4657MU in previous year reflecting a growth of about 7.37 percent over the previous year, states the report.
On the borrowing side, the report stated that the company had not taken any additional borrowing during the year to finance its capital investments. However, the company continued to depend on soft loans provided for financing rural electrification works.
These soft borrowings are made available to the company by the Asian Development Bank ( ADB), the Japan International Cooperation Agency ( JICA) and the Austrian Federal Government (ADA) on behalf of the Royal Government of Bhutan, according to the report.
During the year, BPC has drawn Nu 135.344 million from JICA, Nu 161.945 million from ADB and Nu 22.849 million from ADA totaling to Nu 320.138million. For the previous year, the total borrowings were Nu 537.930 million, states the report.
Report further stated that the government of Bhutan still continues to support BPC in network expansion programs. For that the company received capital grant of Nu. 171.074 million during the year for rural electrification at Soe and Naro under Lingshi gewog, construction of 132kV D/ C transmission line from Phuntshothang to Motanga under Samdrup Jongkher Dzongkahg and for design, supply and installation of 2x300kw wind power generation project at Rubessa under Wangdue Dzongkhag. The report states that the construction of wind power generation will be the first of its kind that will be harnessed through wind power in the country.
The report stated that the company’s overall revenue earned during the year, the company earned gross revenue of Nu 7,275.06 million during the year as compared to Nu 6,405.57 million in the previous year. The overall revenue has grown by 13.57 percent from the previous year.
The revenue from the sale of electricity is Nu 4,032.66 million for the year as compared to Nu 3346.62million in 2013. But the total expenditures also increased as compared to the previous year. According to the report the expenditure for the year was reached to Nu 5,681.97 million as compared to Nu 5033.11 million in the previous year. This was mainly due to incurred for the purchase of power, finance costs and depreciation.
During the year the company could make net profit after tax of Nu 1,002.97 million as compared to Nu 963.27million in the previous year.
According to the report, the company spent Nu 1,668.54 million as compared to the previous year amounting to Nu 1,570.21 million for the capital works for network expansion and for augmenting and improving the ageing grid network.
While, the corporation has made a significant progress today as about 97 percent of the Bhutanese homes all over the country have access to grid electricity supply as compared to 94 percent in the previous year, states the report.
Meanwhile, in the 11th FYP, the corporation will work towards reaching grid electricity to three more remote gewogs of Soe, Naro and Lingshi. However Lunana will be the last gewog remaining to be electrified in future, according to the report.