I. Introduction
Electric utilities in developing countries are in the process of privatization and restructuring, with primary focus on efficiency improvement in electricity generation, transmission, and distribution. As the investment required in generation of electricity is huge, even a small improvement in production efficiency may result in significant benefits [1]. This has created increasing interests in productive efficiency of electricity generation. In Nepal, hydropower plants are meeting more than 90% of electricity demand. There are 16 major hydropower plants and two thermal power stations owned by Nepal Electricity (NEA), amounting to 453.74 MW. Also, the total installed capacity of national grid including independent power producers (IPPs) and others is 609.1 MW [2].