NEA records profit growth, earns over Rs. 16 billion

By Laxman Kafle, Kathmandu, Aug. 11: The profit of Nepal Electricity Authority increased by about 164 per cent in the last fiscal year 2021/22.

As per the preliminary financial report of the NEA, the utility earned a profit of Rs. 16.09 billion in the last fiscal year 2021/22, said the NEA.

The profit of the NEA was limited at Rs. 6.10 billion in the previous fiscal year 2020/21.

The annual income of the authority exceeded Rs. 100 billion in the last fiscal year, said Kul Man Ghising, Managing Director of the NEA.

With this feat, the Authority has become the highest earning and profit-making organisation among the public institutions, said the NEA.

“When energy consumption increased by 27 per cent, sales income increased. Similarly, as electricity exports increased, we were able to increase electricity production by about 16 per cent from the powerhouses owned by the authority and reduce the leakage and expenses. Due to all these, the net profit of the Authority has increased,” said Ghising.

In the year 2015/16, the Authority had a loss of Rs. 8.89 billion and in the following years, the Authority has been continuously making profits. 

In the year 16/17, the NEA made a profit of Rs. 1.50 billion and had increased the profit to Rs. 11.75 billion in the fiscal year 2019/20. However, in the year 2020/21, it had decreased to Rs. 6.10 billion.

Ghising said that since the power supply is becoming reliable and qualitative, its direct positive impact will be on the financial condition of the Authority.

The Authority earned Rs. 88 billion from the sale of electricity in the last fiscal year. About Rs. 980 million has been given to the customers as discount that pay the electricity tariff on time according to the electricity tariff collection regulations.

After discount, the NEA made net income of Rs. 87 billion from the sale of electricity, which is 22 per cent more than the previous year.

Power leakage down to 15.38%

Through the campaign to control technical and non-technical leakage, electricity leakage was reduced to 15.38 per cent in the last fiscal year.

In the electricity system, there was 25.78 per cent leakage in the year 2015/16, and it continuously decreased in the following years to 15.25 per cent in the year 2019/20. However, it increased to 17.18 per cent in the year 2020/21.

MD Ghising said that the steps taken to control leakage in the year 2021/22 were made more systematic and effective, and the leakage was reduced by 1.80 percentage points to 15.38 per cent compared to the previous fiscal year.

“The NEA has earned about Rs. 2 billion more than the previous fiscal year from leakage control alone,” he said.

“To control leakage, to control theft, to be strict in the collection of dues, to reduce technical leakage, transformers, distribution lines and strengthening of substations will be carried out more effectively and systematically as a campaign,” he said.

Power export up, net imports down

In the year 2021/22, electricity exports to India have increased while imports have decreased.

Currently, the electricity not consumed in Nepal is being exported to India from about 364 MW to about 400 MW daily.

About 44 million units (44 Gwh) of electricity was exported in the fiscal year 2020/21, while in the year 2021/22, 493 million units (493 Gwh) of electricity was exported.

The Authority earned Rs. 3.88 billion from electricity export in the last fiscal year. Compared to the previous year, the Authority has succeeded in reducing 

the import of electricity despite an increase of 21.28 per cent in domestic electricity consumption in the year 2021/22.

In 2020/21, about 2.806 billion units (2,806 Gwh) of electricity was imported to meet the domestic demand, but in 2021/22, it decreased by 45.05 per cent to 1.543 billion units (1,543 Gwh), said NEA.

The electricity worth Rs. 21.82 billion 

was imported in the fiscal year 2020/21. In the year 2021/22, the import of electricity decreased to Rs. 15.45 billion.

Deducting the exported electricity from the electricity imported by the Authority, the net import is 1.05 billion units. Based on the amount, electricity worth only Rs. 11.58 billion was imported.

Out of the energy available in the system, the share of net import has dropped to 9.49 per cent, said the NEA.

MD Ghising said that net import would end and net export would start from the current fiscal year 2022/23.

In the fiscal year 2021/22, the electricity peak demand reached 1,747 megawatts. The number of electricity customers, including community customers, has reached 5.3 million.