Although the Nepal Electricity Authority (NEA) earned NPR 125.27 billion from electricity sales in the fiscal year 2081/82 (2024/25), its profit fell.
According to the report released on Sunday during its annual anniversary, NEA’s profit decreased by NPR 5.395 billion in the fiscal year 2081/82. In the previous fiscal year 2080/81, the profit had been NPR 13.30 billion, but it dropped to only NPR 9.06 billion in 2081/82.
The authority stated that the decline in profit was due to increased leakage, higher expenses on foreign loan repayments as the U.S. dollar appreciated, and provisioning for outstanding dues of dedicated and trunk lines, which reduced the balance sheet profit.
However, NEA’s total assets increased. Compared to the previous fiscal year, assets rose by 6.2 percent, reaching NPR 684.91 billion in 2081/82. Operating expenses rose by 10.15 percent.
Managing Director Hitendra Dev Shakya stated that appreciation of foreign currencies, including the Japanese yen and the U.S. dollar, alone caused a loss equivalent to NPR 28 billion. “An increase in administrative expenses and a reduction in the average electricity sales price have also contributed to the decline in profit,” Shakya said.
Including electricity sales and other sources, NEA’s total revenue by the end of fiscal year 2081/82 reached NPR 138.87 billion. The authority reported that total expenditure, including operating costs and interest payments, amounted to NPR 129.81 billion. An additional loss of around NPR 5.5 billion occurred due to provisioning for dues related to dedicated lines and outstanding payments with the Government of Nepal.
