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NEA’s Net Income Projected to Cross One Billion

Nepal Electricity Authority (NEA) has stated that its net income is going to exceed the amount predicted in the fiscal year 2016/17. It had the target of Rs 1.01 billion in the last fiscal year.

One of the main reasons that NEA has been able to increase its income is controlling power theft. It has made an extra income of approximately Rs. 4 billion from controlling power leakage.

However, NEA’s total loss still amounts to Rs. 28.12 billion. According to Kulman Ghising, NEA Executive Director, the NEA budget of last year has estimated the loss to be around Rs. 2.50 billion. With the aid of administrative and fiscal reforms, they had been able to take NEA into profit.

Other reasons that have aided NEA to increase their income are the price drop in the average power purchase rate from India and independent power generators, decrease in various expenses, and termination of load-shedding and the effective financial restructuring.

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