The Nepal Electricity Authority (NEA) was established on August 16, 1985 (Bhadra 1, 2042) under the Nepal Electricity Authority Act, 1984. It was formed through the merger of the Department of Electricity under the Ministry of Water Resources, the Nepal Electricity Corporation, and several related development boards. This unification aimed to eliminate inefficiencies, overlaps, and duplication of work within the previously fragmented electricity organizations and to ensure the delivery of efficient and reliable services nationwide.

NEA’s primary objective is to generate, transmit, and distribute adequate, reliable, and affordable electricity across Nepal. This includes planning, constructing, operating, and maintaining all generation, transmission, and distribution facilities within both interconnected and isolated power systems. 

In addition to its core mandate, NEA is responsible for:

• Recommending long-term and short-term power sector plans and policies to the Government of Nepal.
• Proposing, determining, and implementing electricity tariff structures with prior government approval.
• Organizing training and educational programs to develop skilled manpower in electricity generation, transmission, distribution, and other related areas.