NEA earned a profit of 15.36 billion in the first 6 months

Kathmandu; The Nepal Electricity Authority (NEA) has earned a profit of NPR 15.36 billion in the first 6 months of the fiscal year 2080/81. According to the financial details of the NEA's current fiscal year (unaudited), a total revenue around of NPR 67.29 billion has been generated from electricity sales, interest, and other income during this period.

In the same period a total expenditure of NPR 51.92 billion has been incurred on electricity purchase, administration, and other arrangements. The main sources of revenue for the NEA are electricity sales, purchases, and other income.

During the review period, the NEA has earned a profit of NPR 15.36 billion (before tax). In the previous fiscal year 2079/80, during the same period, the NEA's profit was NPR 10.91 billion. In comparison to the first 6 months of the previous fiscal year, the NEA's profit in the current fiscal year has increased by NPR 4.44 billion. The profit for the previous fiscal year was NPR 12.33 billion. The NEA has been consistently profitable in recent years, maintaining an annual surplus of NPR 8.89 billion in fiscal year 2072/73 and onwards.

Kulman Ghising, the Managing Director (MD) of the NEA, has been credited with successfully increasing revenue through better management of electricity leakage control, internal operations, and increased electricity exports to India. Additionally, effective cost control measures have also contributed to the significant profit earned during the first 6 months of the current fiscal year.

"Due to budget constraints, we have not been able to secure sufficient funds for investments from the government, in such a challenging situation, we have been investing billions of rupees annually from the profits earned by the organization," he said. "To become self-reliant in electricity, increase domestic consumption internally, and provide consumers with quality and uninterrupted electricity, more than NPR 10/12 billion investment will be required in generation, transmission, and distribution sector in the coming years."

During the current 6 months of the fiscal year, the NEA has collected NPR 45.49 billion from electricity sales. During this period, electricity purchases amounting to NPR 30.48 billion & 5.8 million have been made from energy producers within the country and imported from India. The NEA has imported electricity worth around NPR 28.50 billion from subsidiary companies and NPR 1.98 billion from India. In the review period, foreign expenses amounting to NPR 9.4 billion have been incurred through government allocates.

During the first 6 months of the current fiscal year, the NEA has exported electricity worth NPR 13.38 billion to India. The NEA has sold electricity to the Indian company NTPC Vidyut Vyapar Nigam (NVVN) Ltd. under the day-ahead market and according to the mid-term electricity trade agreement. NVVN has been selling the electricity in the state of Haryana.

In the review period, 1.48 billion units of electricity have been exported. Due to decreased flow of water in the rivers, the generation of hydropower plants has decreased, resulting in increased electricity imports from India to meet domestic demand. In the review period, 22.5 million units of electricity have been imported. With the start of the monsoon season, electricity exports are expected to resume.