The Nepal Electricity Authority (NEA) has reported it is still at a Rs 5.26 billion in loss despite its accumulated profit reaching around Rs 46.47 billion in the last fiscal year, 2023/24, and making a profit of Rs 9.48 billion in the first eight months of the current fiscal year, according to its white paper obtained by New Business Age.

The loss is attributed to adjustments for the last 12 years under the tax provisions of the Income Tax Act and accelerated depreciation claims.

This ‘revelation’ contradicts claims made by former NEA Managing Director Kulman Ghising, who consistently asserted that the authority turned from losses to profits under his leadership. Ghising had previously stated that the NEA had accumulated a loss of Rs 34.61 billion until FY 2015/16 but had made consistent profits starting from FY 2016/17. 

During the third anniversary of his second term in August 2024, Ghising had also reported NEA’s net profit of Rs 13.31 billion for FY 2023/24. 

Ghising’s tenure abruptly ended in March, when the government removed him four months before the end of his term. He was replaced by Hitendra Dev Shakya, who had previously held the position before Ghising in 2021. 

His removal followed mounting tensions with Prime Minister KP Sharma Oli and Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, over issues surrounding electricity dues from industries, especially those connected to dedicated feeders and trunk lines during Nepal's peak load-shedding period. 

Minister Khadka was critical of Ghising’s leadership and had frequently accused him of fabricating profits for popularity. 

Ghising is widely credited with ending Nepal’s long-standing power shortages, with NEA declaring the end of load-shedding for industrial users in May 2018, a year after residential consumers were relieved from power cuts. 

In his first public statement since his dismissal, Ghising earlier this month had  condemned his removal as a “politically motivated act”, criticizing increasing political interference in Nepal's civil service, and hinted at a potential entry into politics.

Both Shakya and Ghising filed separate writ petitions at the Supreme Court, arguing that their dismissals in 2021 and 2025, respectively, as MD were illegal. However, the court has so far declined to issue interim orders on their petitions.