NEA Net Profit Nearly Halves to Rs 5.04 Billion

KATHMANDU; The Nepal Electricity Authority (NEA) saw its net profit nearly halve to Rs 5.04 billion in the last fiscal year, down 49.2 percent from Rs 8.06 billion a year earlier.

The state-owned power utility’s net profit declined by Rs 3.97 billion in a year, continuing a downward trend in recent years. The NEA had posted a net profit of Rs 13.31 billion in FY 2023/24.

NEA officials attributed the latest decline largely to fluctuations in the US dollar exchange rate. The authority’s financial liabilities surged 272.86 percent to Rs 11.51 billion due to the currency fluctuation, according to NEA data.

NEA Director General Dirghayu Kumar Shrestha said higher loan and interest liabilities, increased depreciation expenses and other factors contributed to the decline in net profit.

Despite the fall in net profit, the NEA’s overall financial performance improved in several areas. Its total income reached Rs 166 billion, with electricity sales alone rising 18.2 percent to Rs 148.62 billion.

The authority’s overall profit increased 13.17 percent to Rs 31.23 billion, while operating profit rose 7.28 percent to Rs 24.81 billion. The NEA attributed the improvement to better operational performance, reduced electricity leakage and increased electricity exports.

Meanwhile, the NEA’s total assets increased 8.9 percent to Rs 771.19 billion. Projects currently under construction account for an investment of Rs 206.26 billion.

The authority also provides free electricity to 2.588 million domestic customers using 5-ampere meters. The average electricity selling rate stands at Rs 9.68 per unit, while average consumption per customer has increased to 2,088 units.