Nepal Electricity Authority (NEA) has recorded a profit of Rs 15.36 billion in the initial six months of the current fiscal year (FY) 2080/81. As per the unrevised financial statement for this period, the authority generated a total revenue of Rs. 67 billion 287 million from electricity sales, interest, and other sources. Expenditures for electricity procurement, administrative, and project-related purposes amounted to Rs 51,920,710,000 during this period.
During the assessment period, the Authority garnered a profit of Rs 15.36 billion (pre-deductions). In the corresponding period of the preceding fiscal year 2079/80, the Authority’s profit amounted to Rs 10.91 billion 6 million.
Compared to the initial six months of the prior year, the Authority’s profit for the corresponding period of the current year has surged by Rs 4 billion 444.6 million . The profit registered last year stood at Rs 12.33 billion. Notably, the Authority faced an annual loss of Rs 8.89 billion in the fiscal year 2072/73 but has since maintained a streak of profitability in the subsequent years.
Kulman Ghising, the executive director of the authority, attributed the significant profit achieved in the initial six months of the current year to the successful efforts in controlling electricity leakage, boosting income, and managing expenses through increased electricity exports domestically and to India.
“Due to budget constraints, government funding for investment is insufficient,” explained Executive Director Ghising.
“Despite this challenging situation, we allocate billions of rupees annually from the organization’s profits to projects involving electricity generation, transmission, distribution infrastructure expansion, and electrification,” He added.
Ghising emphasized the need for investments totaling more than 10-12 trillion rupees in the coming years for projects related to production, transmission, and distribution in order to achieve self-sufficiency in electricity, increase internal consumption, and deliver quality and reliable electricity to consumers. However, he noted that the organization’s profits are insufficient to meet the cash flow requirements for such investments.
In the first six months of the current year, the authority generated revenue amounting to Rs. 45 billion 493.8 milllion from electricity sales. During this period, electricity purchases from domestic energy producers and imports from India totaled Rs. 30 billion 485 million. Additionally, imports of electricity from the authority’s subsidiary and related companies amounted to Rs. 28 billion 499.6 million and Rs. 1 billion 986.2 million rupees, respectively.
| Financial Year | Profit (Rs) | Loss (Rs) |
|---|---|---|
| 2072/73 | 8 billion | 89 crores |
| 2073/74 | 1 billion | 50 crores |
| 2074/75 | 3 billion | 44 crores |
| 2075/76 | 9 billion | 81 crores |
| 2076/77 | 11 billion | 75 crores |
| 2077/78 | 6 billion | 9 crores |
| 2078/79 | 13 billion | 37 million |
| 2079/80 | 12 billion | 33 crores |
| 2080/81 (6 months) | 15 billion | 36 crores |
Source: Nepal Electricity Authority
During the initial six months of the current year, the Nepal Electricity Authority exported electricity amounting to Rs. 13 billion 385 million to India, while importing electricity worth Rs. 1.986 Crore during the same period.The authority exports surplus electricity to India after meeting domestic demand during the rainy season. Through competitive bidding in the day-ahead market and under the Mid-Term Power Agreement, the authority sells electricity to the Indian company NTPC Vidyut Vyar Nigam Ltd-NVVN. NVVN further distributes the electricity in the state of Haryana.
Related: Damak View Tower, A Government Build 18 Story Business Tower Raises Concerns Over Its Feasibility
Throughout the evaluation period, 1,476,400,000 units of electricity were exported. As the dry season commenced, the water flow in rivers and canals diminished, leading to a reduction in hydroelectric project output. Consequently, electricity is currently being imported from India to satisfy domestic demand.Approximately, 225 million units of electricity were imported during this assessment period. Once the rainy season resumes, electricity exports will recommence.
About Nepal Electricity Authority (NEA)
Nepal Electricity Authority (NEA) was established on August 16, 1985 (Bhadra 1, 2042) under the Nepal Electricity Authority Act of 1984. This was achieved by merging the Department of Electricity of the Ministry of Water Resources, Nepal Electricity Corporation, and relevant Development Boards. This merger was intended to address the inefficiencies inherent in fragmented electricity organizations, which led to duplicated efforts and overlapping responsibilities. By amalgamating these entities, the aim was to enhance operational efficiency and ensure consistent and reliable service provision.
