28th February 2025, Kathmandu
The Nepal Electricity Authority (NEA) recorded a profit of NPR 11.36 billion during the first six months of the current fiscal year 2081/82 (2024/25). This financial success is attributed to increased electricity sales, exports, and effective cost management.
NEA Mid-Year Profit
Revenue and Expenses
In the six months from Shrawan to Poush, NEA generated NPR 70.44 billion in total revenue. The majority of this income came from electricity sales, along with interest earnings and other sources.
During the same period, the authority spent NPR 59.08 billion on power purchases, administrative expenses, and various projects. The financial report, published under the Right to Information (RTI) Act, highlights the company’s continued profitability.
Electricity Sales and Purchases
Domestic Sales: NEA collected NPR 53.18 billion by selling electricity within Nepal.
Power Purchases: The authority bought 6.31 billion units of electricity from its subsidiaries and private power producers at NPR 34.84 billion.
Imports from India: Nepal imported 242 million units of electricity, costing NPR 1.65 billion.
Exports to India: NEA exported 1.77 billion units to India, generating NPR 13.09 billion in revenue.
Electricity exports have significantly outpaced imports, contributing to NEA’s overall profit growth.
Financial Turnaround
In FY 2072/73, NEA faced a loss of NPR 8.89 billion. However, consistent improvements in revenue collection and power trade helped reverse this trend. In the previous fiscal year 2080/81, NEA recorded a profit of NPR 14.46 billion, continuing its positive financial trajectory.
Investment in Infrastructure
NEA has been reinvesting its profits in key development areas:
NPR 13.35 billion has been allocated for power generation, transmission, and electrification projects.
NPR 10.49 billion has been used for direct foreign aid reimbursements in energy development projects.
Future Outlook
NEA’s financial success has positioned it as a key player in Nepal’s energy sector. The authority aims to expand electricity distribution, strengthen transmission lines, and enhance power exports.
With rising domestic production and increased regional trade, NEA is expected to maintain its growth momentum. Further infrastructure upgrades and cross-border trade agreements could boost its earnings in the coming years.
Nepal’s electricity sector is undergoing significant changes, and NEA’s strategic planning will be crucial in shaping the country’s energy security and economic growth.