Kathmandu, Feb. 29: Nepal Electricity Authority has made a profit of Rs. 15.36 billion in the first six months of the current fiscal year 2023/24. As per the NEA’s preliminary financial report of the first six months of the current fiscal, it has earned a profit of Rs. 15.36 billion (before tax deduction) during the review period.

During the period, the NEA has made a total income of Rs. 67.28 billion, earning from sale of electricity, interest and other income. In the meantime, around Rs. 51.92 billion has been spent on electricity purchase, administration and projects.

The Authority’s main income and expenses are in electricity sale and purchase and projects respectively. The profit of NEA is Rs. 4.44 billion higher during the first six months of the current fiscal year as compared to corresponding period last year.

The NEA had earned a profit of Rs. 10.91 billion during the first six months of the last fiscal year 2022/23. In the last fiscal year 2022/23, NEA’s profit was Rs. 12.33 billion. The NEA, which had an annual loss of Rs. 8.89 billion in fiscal year 2015/16, has been continuously making profits from the following years.

The Authority has collected Rs. 45.49 billion from electricity sales in the first six months of the current fiscal year. During the review period, electricity worth Rs. 30.48 billion has been purchased from energy producers within the country and imported from India, according to the NEA. During the review period, around Rs. 9.03 billion has been spent on overseas projects allocated by the government.

Managing Director of NEA Kul Man Ghising said that they have succeeded in making a significant profit in the first six months of the current fiscal year due to the control of electricity leakage, increase in income due to increased export electricity to India and increased domestic consumption and control expenses as well.

“Due to budget limitations, we are not able to get enough funds for investment from the government. In such a complicated situation, we are investing billions of rupees every year in infrastructure development for strengthening, electrification projects for electricity generation, transmission and distribution from the profits earned by the organisation,” said Ghising.

“In order to become self-reliant in electricity, to increase internal consumption and to provide quality and reliable electricity to consumers, an investment of more than Rs. 1,000-1,200 billion is required in the coming years in the projects of production, transmission and distribution. The profit of the organisation is not enough for cash flow,” he added.

Electricity export of Rs. 13 billion, import of Rs. 2 billion

In the first six months of the current fiscal year, the utility has exported electricity worth Rs. 13.38 billion to India. During the same period, electricity worth Rs. 1.98 billion has been imported, said the NEA.

The NEA is exporting electricity during rainy season and imported electricity in dry season to meet the domestic demand. The Authority has been exporting surplus electricity to India during the rainy season for the past two years.

The Authority is selling electricity in Indian Energy Exchange (IEX) through competition in the day-ahead market and according to the mid-term electricity agreement to NTPC Vidyut Vyapar Nigam Ltd (NVVN). The NVVN is selling the electricity in the state of Haryana.

During the review period, around 1.476 billion units of electricity have been exported. With the onset of the dry season, the flow of water in rivers and streams decreased and the electricity production of hydropower projects declined, hence electricity is being imported from India to meet the domestic demand of the country.

During the review period, around 225 million units of electricity have been imported from India. Once the rainy season starts, electricity export will resume again, said the NEA.