The Nepal Electricity Authority (NEA) has significantly reduced electricity leakage, achieving steady profits for eight consecutive years.

According to a report submitted to the Ministry of Energy, Water Resources, and Irrigation, the state-owned power utility limited electricity leakage to approximately 12.73 percent in the last Fiscal Year (FY) 2022/23.

Embracing the principle that reducing leakage is as important as generating revenue, the NEA has made substantial efforts to minimize unauthorized electricity theft and technical losses.

Eight years ago, the NEA faced a leakage rate of 25.78 percent. By FY 2022/23, the rate had been reduced to 13.46 percent, and in FY 2023/24, it was further lowered to 12.73 percent.

The NEA earned a profit of Rs 14.46 billion in the last FY. Back in FY 2015/16, it had suffered a loss of Rs 8.89 billion, but by FY 2016/17, it turned a profit of Rs 1.50 billion, marking the beginning of its profitability. Since then, the NEA has consistently recorded profits.

Eight years ago, the NEA had an accumulated loss of Rs 34.61 billion, but it now holds a profit of Rs 47.41 billion. Additionally, the NEA has made significant progress in electrification.

In FY 2015/16, the electrification rate was only 58 percent. Three years ago, it stood at 89.8 percent, and it has now reached 99 percent.

Managing Director Kul Man Ghising stated that the NEA has focused on improving its financial performance, ensuring good governance, electrifying every household, and expanding as well as strengthening transmission and distribution infrastructure to provide sufficient, reliable, high-quality, and safe electricity supply.

Ghising also emphasized that the NEA has prioritized advancing major hydropower projects, increasing domestic electricity consumption, and exporting surplus power.

After the country overcame load-shedding and electricity supply became stable, the NEA has addressed emerging challenges in the system. It has worked to expand, improve, and automate infrastructure through technology to ensure consumers receive reliable and high-quality electricity.

According to ICRA Nepal’s credit rating, the NEA has consistently achieved a "Double A Plus" rating. In the last FY, the NEA earned Rs 17.7 billion by exporting surplus electricity to India.

Notably, the NEA became a net electricity exporter in the last FY by exporting electricity worth over Rs 130 million, surpassing imports and marking a historic milestone.