NEA earns profits of Rs 8.50 billion in Q1, backed by leakage reduction and energy export

Kathmandu; Nepal Electricity Authority (NEA) earned profits of Rs 8.50 billion in the first three months of the current fiscal year.

The authority earned total revenue of Rs 32.98 billion during mid-July and mid-October this year. Of the amount, the state-owned public utility generated revenue of Rs 22.20 billion from selling of electricity produced by the NEA-owned power plants and hydropower projects operated by the private sector, according to the NEA.

Likewise, the NEA gained a notable amount from exporting electricity to India. The NEA records show that the cross-border power trade provided the authority with revenue of Rs 6.17 billion during the review period.

NEA started selling excess monsoon electricity produced in the country through competition in the day-ahead market of the Indian Energy Exchange Limited (IEX) from June 2. The average price per unit of exported electricity is Rs 7.91.

Initially, 39 megawatts of electricity produced by the two power plants were sold to IEX on a daily basis. Later on, from June 10, the NEA started selling 364 MW of electricity, produced by six hydropower plants, in the Indian market at competitive rates.

NEA has been securing profits for the past six years. In the fiscal year 2019/20, the NEA earned profits of Rs 11.75 billion, which was reduced to Rs 6.09 billion in the following year. In the last fiscal year, the amount surged to Rs 16.16 billion.

NEA Managing Director Kulman Ghising said a growth in profit was due to the NEA’s constant effort to reduce power leakage in the distribution system and increased domestic consumption and exports to India.

Ghising said the authority has been investing its profit amount in the enhancement of the infrastructure related to the distribution system to ensure the reliable and quality electricity supply to the public. According to him, Nepal needs an additional investment of up to Rs 400 billion in the next five years to strengthen electricity supply across the country.