Electricity exports increased, imports decreased
Kathmandu — While most of the government corporations are running at a loss one after another, the Nepal Electricity Authority (NEA) has managed to make significant profit. The latest example of how a troubled public enterprise can be made profitable with the positive guidance of the political leadership, meaningful initiative of the executive head of the organization concerned and hard work of the staff.
It has also become clear that any complex task can be carried out in a simple manner with proper use of available resources and responsibility towards the consumers. NEA has earned a profit of Rs 12.12 billion in the first six months of the current fiscal year. According to NEA’s financial statement (unrefined), it had made a profit of Rs. 6 billion 180 million in the last fiscal year 2077/78. Profit has doubled in the first six months of the current fiscal year.
NEA, which had an annual deficit of Rs. Last year, there was a significant decline in profits. NEA Executive Director Kulman Ghising said that the quality leap in the economic health of the organization was due to the control of electricity leakage, increase in the volume of electricity exports to India and reduction in electricity imports. He said that the organization has been able to earn significant profit in the first six months of the current fiscal year due to increase in electricity sales and other income. Executive Director Ghising said,
Similarly, the fact that the power purchase rate with 456 MW Upper Tamakoshi is slightly cheaper than other private sector projects is another important reason for the increase in profit. Similarly, 50 percent share of the 60 MW Khimti Hydropower Project operated by Himal Power has also come in the name of NEA. The purchase price of electricity for the project is also very cheap. “Consumer tariffs have been adjusted with effect from last December,” he said. This may affect profits as revenue declines slightly for the rest of the current fiscal year, but leakage control is still effective and financial discipline is tightened. We are working to reduce the profit by Rs 15 billion ‘, he said. NEA has allocated Rs 1.5 billion in FY 2073/74, Rs 2.84 billion in FY 2074/75, Rs 9.81 billion in FY 2075/76, Rs 13.27 billion in FY 2076/77, Rs.
NEA has earned Rs. 47.98 billion in the first six months of the current fiscal year. Similarly, Rs. 35.86 billion has been spent. The main income and expenditure of NEA is on sale and purchase of electricity respectively. NEA’s long-term debt of foreign donors has reached Rs 114 billion. The long-term debt of the Government of Nepal is Rs. 81.81 billion, while the long-term liability of the employees is Rs. 36.84 billion. NEA has a capital of Rs 165 billion. The remaining assets to be capitalized are Rs 152 billion, investment in subsidiary companies is Rs 35.34 billion and loan investment is Rs 32.50 billion. Similarly, liquid capital is equal to Rs. 85.10 billion.
Compared to the previous year, the export of electricity to India has increased in the first six months of the current fiscal year. Similarly, the import of insufficient electricity has decreased. Of the 316 million rupees exported to India in the last fiscal year, 805 million rupees has been exported in the first six months of the current fiscal year. On the basis of energy, the export of 44 million units last year has increased to 173 million units in the first six months of this year.
In FY 2076/77, the import of electricity increased from Rs. 13.42 billion to Rs. 21.82 billion in the last fiscal year. However, only Rs 2.58 billion has been imported in the first six months of the current fiscal year. Although imports will increase in January and February, it will not exceed Rs 10 billion this year, said Ghising. Compared to the previous year, the demand for electricity has increased by about 200 MW this year. About 660 MW of electricity has been added to the system, including 456 MW of Upper Tamakoshi.