NEA posts Rs. 11.36 billion profit in 6 months

KATHMANDU, FEBRUARY 28: The Nepal Electricity Authority (NEA) recorded a profit of Rs. 11.36 billion in the first six months of the current fiscal year 2024/25

During the review period, the NEA generated a total revenue of Rs. 70.44 billion from electricity sales, interest, and other sources, while expenditures on electricity purchases, administrative costs, and various projects amounted to Rs. 59.08 billion. As a result, the projected pre-tax profit for the first half of the fiscal year stands at Rs. 11.36 billion.

The NEA, which reported an annual loss of Rs. 8.89 billion in fiscal year 2015/16, has been consistently profitable in subsequent years. In the last fiscal year alone, it recorded a profit of Rs. 14.46 billion. The authority has been reinvesting its profits in infrastructure development, focusing on electricity generation, transmission, distribution, and electrification projects.

During the review period, the NEA collected Rs. 53.18 billion from electricity sales. It purchased a total of 6.31 billion units of electricity, including 1.15 billion units from its subsidiaries and affiliated companies and 5.16 billion units from private producers, at a total cost of Rs. 34.84 billion.

Additionally, 242 million units of electricity were imported from India at a cost of Rs. 1.65 billion, while 1.77 billion units were exported, generating revenue of Rs. 13.09 billion.

In the first six months of the current fiscal, the NEA spent Rs. 13.35 billion on various electrification and development projects with the financial support from both gthe overnment and foreign development patners. Additionally, Rs. 10.49 billion was directly disbursed through foreign aid.