The profit of Nepal Electricity Authority (NEA) declined by around 27.65 percent in the third quarter of the current fiscal year 2022/23. The state-owned power utility has posted a profit of Rs 8.77 billion (before tax) in the review period compared to Rs 12.12 billion during the corresponding period of FY 2021/22. NEA's annual net profit in the last fiscal year was Rs 16.16 billion, a whopping 157.73 percent increase from FY 2019/20. However, with a sharp drop this year, NEA's profit may not reach the last year's profit level. According to NEA, its operating income dropped by 12 percent in the current fiscal year. The authority earned an income of Rs 84.60 billion in the first nine months of FY 2022/23 compared to Rs 95.95 billion during the same period of the last fiscal.

Data shows NEA's expenses declined by 9.54 percent in the third quarter of the current fiscal year to Rs 75.83 billion from Rs 83.83 billion in the corresponding period of the last fiscal year.

According to NEA officials, the profits have declined as it had to import more electricity this year due to the prolonged dry season and decrease in water levels in the rivers. NEA has been importing electricity from India during the dry season that runs from December to April. According to NEA, the run-of-the-river type hydropower projects produce less than 40 percent of their installed capacity during the dry season. NEA's Deputy Managing Director Pradip Kumar Thike said the authority's profit generally contracts till the third quarter of the fiscal year. "The actual picture of the NEA's profit will be visible by the end of the fiscal year," he said. In the meantime, NEA has also invested Rs 28.63 billion in shares and loans in various hydropower projects and rural electrification projects. The authority earned Rs 62.52 billion by selling electricity during this period. It has earned Rs 8.43 billion by exporting electricity to India. NEA has purchased electricity worth Rs 30.44 billion from the private sector power developer in this fiscal. Similarly, it has imported electricity worth Rs 12.28 billion from India during this period.