February 21: Nepal Electricity Authority (NEA) has made a profit of Rs 12.12 billion in the first six months of current fiscal year.     

According to the financial details issued by the NEA, the state-owned utility had made a profit of Rs 6.18 billion in the corresponding period of last fiscal year.

NEA is the public institution which earns the maximum profit.

The NEA, which was facing loss in Fiscal Year 2072/73, has been making profit every year since then.

NEA Executive Director Kul Man Ghising said that the NEA was able to maximize profit by controlling electricity leakage, increasing export of electricity to India, limiting import of electricity, increasing sale of electricity among others.

“Reduction in operational cost and steps taken to bring administrative and financial reforms also helped in increasing profit,” said Ghising, adding, “The electricity tariff for customers have been revised from mid-December. This will cause a slight reduction in income of NEA but we have taken effective measures to curb electricity leakage and to maintain financial discipline. We are expecting to generate profit of Rs 15 billion.”

In the six months of the current FY, electricity leakage has dropped to 14.45 percent from 17.18 percent in the corresponding period of previous FY. The NEA aims to limit electricity leakage to 15.5 percent in the current FY.    

During the review period, NEA made an income of Rs 47.98 billion while its expenses were Rs 35.86 billion.

The NEA’s long-term debt to the donors is Rs 114 billion. Similarly, the NEA is liable to pay a long-term loan of Rs 81.81 billion to the Government of Nepal and its financial obligation to the staffers is worth Rs 36.84 billion.

Electricity export up   

The NEA informed that the export of electricity has increased and import decreased in the six months of the current fiscal year (FY 2021/22).    

In the fiscal year, 2020/21, power worth Rs 316 million was exported to India. The figure increased to Rs 805 million in the first six months of the current FY.

Similarly, electricity import had increased to Rs 21.8 billion in the FY, 2020/21 from Rs 13.4 billion in the FY, 2019/20. But, the country imported power worth Rs 2.5 billion till date in the current fiscal year.    

According to Executive Director of NEA Ghising, electricity demand within the country has increased by approximately 200 megawatts as compared to the previous year. Approximately 660 megawatts electricity has been added to the national grid.