Amid flickering lights, NEA loses a billion rupees

As the expenses surged, the profit of Nepal Electricity Authority (NEA) declined by Rs 1.04bn in the last fiscal. The state-owned power utility posted a profit of Rs 12.33bn in the fiscal 2022/23. The NEA had logged a profit of Rs 13.37bn in the FY 2021/22. 

The authority’s net profit in the FY 2022/23 plunged by 7.77 percent compared to a whopping 119.18 percent growth in the FY 2021/22. 

According to NEA Executive Director Kulman Ghising, the profit took a beating due to a decline in power generation from hydel projects of the NEA and the private sector, as well as increased electricity imports to manage domestic power demand. 

Despite the decline in profit, the NEA’s operating income surged by 13.88 percent last fiscal. The authority earned an income of Rs 100.37bn in the FY 2022/23 compared to Rs 88.13bn in the FY 2021/22. 

Of the total income in the last fiscal, the NEA earned Rs 89.78bn from the distribution of electricity within the country and Rs 10.59bn from electricity export to India.

Due to the prolonged dry season and decrease in water levels in the rivers, the NEA imported more electricity from the southern neighbor last fiscal. The NEA spent Rs 19.44bn for electricity imports from India in the FY 2022/23.

The state-owned power utility has said that it is going to issue shares to the public. In a press conference organized by the authority on Thursday, Ghising said the process of issuing an initial public offering (IPO) has been initiated. According to Ghising, the NEA has received an AA+ rating from the rating agency ICRA Nepal for its IPO.