KATHMANDU, Aug 18: The Nepal Electricity Authority (NEA) recorded a net profit of Rs 5.04 billion in the last fiscal year, a 49.2 percent decline from Rs 8.06 billion in the previous Fiscal Year (FY).
The state-owned utility’s net profit fell by Rs 3.97 billion year-on-year, extending its recent downward trend. The NEA had earned a net profit of Rs 13.31 billion in FY 2023/24.
According to NEA officials, fluctuations in the US dollar exchange rate were a major factor behind the sharp decline. The authority’s financial liabilities arising from exchange-rate fluctuations increased by 272.86 percent to Rs 11.51 billion.
NEA makes profit of Rs 10.67 billion
NEA Director General Dirghayu Kumar Shrestha said higher loan and interest liabilities, depreciation expenses and other costs contributed to the decline in net profit.
Despite the drop in net earnings, the authority reported growth in revenue and operating performance. Its total income reached Rs 166 billion, while revenue from electricity sales increased 18.2 percent to Rs 148.62 billion.
The NEA’s overall profit increased 13.17 percent to Rs 31.23 billion, while operating profit grew 7.28 percent to Rs 24.81 billion. The authority attributed the improvement to better operational performance, reduced electricity leakage and higher electricity exports.
The NEA’s total assets also grew by 8.9 percent to Rs 771.19 billion. Projects currently under construction represent an investment of Rs 206.26 billion.
Meanwhile, the authority is providing free electricity to 2.588 million domestic customers using 5-ampere meters. The average electricity selling rate stands at Rs 9.68 per unit, while average annual consumption per customer has increased to 2,088 units.
