KATHMANDU, August 11: Nepal Electricity Authority (NEA) earned net profit of Rs 16.09 billion in the last fiscal year, which was more than double of the amount that the public utility earned in 2020/21.
Along with the larger amount of net profit, NEA earnings in 2021/22 crossed Rs 100 billion, shows the unaudited financial report of the authority. With earning a high amount of profit and revenue in the review period, NEA has become the topmost entity among the public enterprises in terms of the financial transactions.
According to NEA, it earned a net profit of Rs 6.10 billion in the fiscal year 2020/21. The notable rise in the profit has been attributed to an increase in electricity production and consumption, rise in electricity export to India, reduction in electricity leakage and effective control of operating expenses.
NEA’s Managing Director Kulman Ghising said there was an increase in domestic energy consumption by 27 percent in the last fiscal year. Similarly, the energy production from NEA owned powerhouses grew 16 percent during the review period.
NEA succeeded in reducing electricity leakage to 15.38 percent last year. The leakage stood at 17.18 percent in 2020/21 while it was 25.78 percent in 2015/16.
In the review period, the state-owned power utility earned revenue of Rs 88 billion by selling its produce. Similarly, it gave a rebate of Rs 980 million to the NEA’s customers who paid electricity bills on time.
NEA sustained a loss of Rs 8.89 billion in the fiscal year 2015/16. However, it has been earning a good amount of profits in the successive year. According to NEA’s report, it earned profits of Rs 1.50 billion in 2016/17, which jumped to Rs 11.75 billion in 2019/20.