NEA Made A Profit Of 15.36 Billion In Six Months

NEA Made A Profit Of 15.36 Billion In Six Months

Feb. 28, 2024, 4:39 p.m.

In the first six months of the current financial year (FY) 2080/81, Nepal Electricity Authority (NEA) made a profit of 15.36 billion rupees. The NEA's financial statement for this period shows that it earned a total of 67.28 billion rupees from the sale of electricity, interest, and other income. It spent a total of 51.92 billion rupees on electricity purchase, administrative projects, and other expenses.

The NEA's main sources of income and expenses are electricity sales and projects, respectively. During the review period, the NEA earned a profit of Rs 15.36 billion (before deductions), which is an increase of 4.44 billion rupees compared to the same period in the previous year when the profit was 10.91 billion 6 million rupees.

During the review period, the Authority earned a profit of Rs 15.36 billion (before deductions), which is an increase of 4.44 billion rupees compared to the same period in the previous year when the profit was 10.91 billion 6 million rupees. It is important to note that the NEA's profit is subject to change based on various factors. Last year's profit was 12.33 billion rupees. The NEA had an annual loss of 8.89 billion in 2072/73, but has been profitable since then.

According to Kulman Ghising, the managing director of the NEA, this is due to controlling electricity leakage, increasing income, reducing expenses, exporting more electricity to India, and increasing internal consumption. The NEA has achieved significant profits in the first six months of this year.

"Due to budget limitations, we cannot obtain sufficient funds for investment from the government. Therefore, we invest billions of rupees annually in infrastructure expansion, strengthening, and electrification projects using profits earned by the organization," stated MD Ghising.

NEA Profit and loss.jpg

To achieve self-sufficiency in electricity and provide reliable service to consumers, an investment of over 10-12 trillion rupees is needed for production, transmission, and distribution projects.

The NEA has collected 45.49 billion rupees from electricity sales in the first six months of this year, but this is not enough to cover the necessary costs. During this period, Nepal has purchased electricity worth 30.48 billion rupees from energy producers within the country and imported from India.

In the first six months of the current year, Nepal Electricity Authority has exported electricity worth 13.385 billion rupees to India. Additionally, during the same period, Nepal has imported electricity worth Rs. 1.986 crore.

The authority exports to India the electricity saved during the rainy season after consumption within the country.

NEA is selling electricity to the Indian company NVVN through competition in the day-ahead market on IEX. NVVN is selling electricity in the state of Haryana.

During the review period, 1,47,6,400,000 units of electricity were exported. Due to the dry season, the flow of water in the rivers has decreased, and the electricity production of hydroelectric projects has also declined. Now, electricity is being imported from India to meet domestic demand.

During the review period, Nepal imported 225 million units of electricity. Once the rainy season begins, Nepal will resume exporting electricity. In the last six months, Nepal exported electricity worth 13 billion to India and imported electricity worth Rs 2 billion.

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