Nepal Electricity Authority earns Rs 11.36 billion profit in six months

KATHMANDU: The Nepal Electricity Authority (NEA) has reported a profit of Rs 11.36 billion in the first six months of the current fiscal year (FY) 2081/82 (2024/25). According to the details made public under the provisions of the Right to Information Act (voluntary disclosure), the NEA earned a total revenue of Rs 70.44 billion during this period from electricity sales, interest, and other sources.

The authority incurred a total expenditure of Rs 59.08 billion, which includes costs for electricity purchases, administrative expenses, and various projects. Consequently, the NEA has projected an unadjusted profit (before tax deductions) of Rs 11.36 billion from mid-July (Shrawan) to mid-January (Poush) of the current fiscal year.

Profit and Loss Status Over the Years

Fiscal Year |                      Profit (Rs)        Loss (Rs) 
————-                            ——————-|—————–
2072/73                                                                 8.89 billion
2073/74                                  1.50 billion                – |
2074/75                                  3.44 billion                – |
2075/76                                  9.81 billion                 – |
2076/77                                  11.75 billion                – |
2077/78                                  6.09 billion                 – |
2078/79                                  13.37 billion               – |
2079/80                                  9.41 billion                 – |
2080/81                                  14.46 billion               – |
2081/82 (6 months)            11.36 billion                – |

Source: Nepal Electricity Authority

In FY 2072/73 (2015/16), the NEA recorded an annual loss of Rs 8.89 billion. Since then, it has consistently remained profitable. In the last fiscal year, 2080/81 (2023/24), the NEA earned a profit of Rs 14.46 billion. The authority has been reinvesting its profits into expanding and strengthening infrastructure for electricity generation, transmission, and distribution, as well as electrification projects.

Revenue and Expenditure Details

In the first six months of the current fiscal year, the NEA collected Rs 53.18 billion from electricity sales. During this period, it purchased a total of 6.31 billion units of electricity, including Rs 1.15 billion from its subsidiaries and affiliated companies and Rs 5.16 billion from other private producers, amounting to a total purchase cost of Rs 34.84 billion. Additionally, 242 million units of electricity were imported from India at a cost of Rs 1.65 billion. Meanwhile, the NEA exported 1.7718 billion units of electricity to India, earning Rs 13.09 billion in revenue.

Investment in Development Projects

Under the development budget received from the government and foreign aid, the NEA spent Rs 13.35 billion on various projects and electrification initiatives during this period. An additional Rs 10.49 billion from foreign aid was directly disbursed for related expenses.

The NEA’s consistent profitability reflects its efforts to improve operational efficiency and expand Nepal’s energy infrastructure.