NEA makes Rs. 8.5 billion profit in three months

By A Staff Reporter,Kathmandu, Dec. 2: Nepal Electricity Authority has earned a profit of Rs. 8.5 billion in the first three months of the current financial year 2022/23.  As per the preliminary financial report of the first three months of the current fiscal of the NEA, the pre-tax profit of the Authority stood at Rs. 8.5 billion by spending around Rs 24.48 billion during the review period.

The NEA has generated income of Rs. 32.98 billion from the sale of electricity, interest income and other income during the review period, said the NEA.

The utility has purchased electricity worth Rs 14.15 billion from the private sector during the period.

A net income of Rs. 22.20 billion has been generated by selling the electricity generated by the power houses owned by NEA and purchased from the private sector within the country.

In the first three months of the current fiscal year, the NEA was able to generate income of Rs 6.17 billion by selling electricity in the competitive Indian market. In the year 2015/16, the Authority bore a loss of Rs. 8.89 billion and in the following years, the Authority has been continuously making profit.

In the year 2016/2017, 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 declined to Rs. 6.09 billion. In the last fiscal year 2021/22, the Authority had earned a profit of Rs. 16.16 billion.

Managing Director of NEA Kul Man Ghising said that the Authority was able to earn significant profit during the first quarter of the current fiscal year due to control in electricity leakage, increase in income and cost control.

He said that increasing the export of electricity to India and domestic consumption has also contributed to increased income of the NEA.

Ghising said that the profit amount was spent on expanding and strengthening the transmission and distribution of infrastructure to increase electricity consumption and provide quality electricity to the consumers.

He said, “Around Rs. 300-400 billion should be invested in order to increase the consumption of electricity, provide affordable and quality electricity to the consumers within 4-5 years. There is no situation to get the required amount from the government due to the limitation of resources, so we will spend the profit amount for the infrastructure development on production, transmission and distribution.”