The Nepal Electricity Authority (NEA) has significantly reduced electricity leakage while maintaining steady profits for eight consecutive years.
A report submitted to the Ministry of Energy, Water Resources, and Irrigation shows that electricity leakage was reduced to 12.73% in Fiscal Year (FY) 2022/23, a remarkable improvement from 25.78% eight years ago. By FY 2023/24, the leakage rate had further declined to 12.73%. This achievement reflects the NEA’s commitment to minimizing unauthorized electricity theft and technical losses, recognizing that reducing leakage is as vital as generating revenue.
The NEA’s financial performance has seen a remarkable transformation. It recorded a profit of Rs 14.46 billion in FY 2022/23, a stark contrast to a loss of Rs 8.89 billion in FY 2015/16. Since achieving its first profit of Rs 1.50 billion in FY 2016/17, the NEA has consistently reported profitability. Over eight years, accumulated losses of Rs 34.61 billion have been reversed to an accumulated profit of Rs 47.41 billion.
Electrification efforts have also progressed significantly. In FY 2015/16, only 58% of the population had access to electricity. Three years ago, this rate was 89.8%, and it has now reached 99%. Managing Director Kul Man Ghising attributes this success to a strategic focus on improving financial performance, ensuring good governance, electrifying every household, and expanding and strengthening transmission and distribution infrastructure to provide a reliable, high-quality, and safe electricity supply.
The NEA has also prioritized advancing hydropower projects, increasing domestic electricity consumption, and exporting surplus electricity. In the last fiscal year, it earned Rs 17.7 billion by exporting surplus power to India, marking a historic milestone as the NEA became a net electricity exporter, surpassing imports with exports worth over Rs 130 million.
Post-load shedding, the NEA has faced new challenges in maintaining system stability. It has invested in expanding, upgrading, and automating infrastructure using advanced technologies to ensure consumers receive uninterrupted and high-quality electricity. Additionally, ICRA Nepal has consistently rated the NEA “Double A Plus,” underscoring its strong financial and operational performance.
