Industry Sector
Power and Utilities
Assurance and compliance support for energy and utilities.
Overview & Core Services
Who We Are & How We Help
We help energy teams improve regulatory reporting, project controls, and cost visibility.
Regulatory Audit
Checks aligned to sector rules.
Tariff and Cost Review
Better clarity on costs and pricing.
VALUE
Creation
Methodology
Creating Value For Your Business
We support reliable reporting that builds confidence for regulators and investors.
Clear project reporting
Reduced compliance risk
The URPCA Advantage
Why Choose URP?
01
Sector-ready methods
Aligned to utility regulations.
02
Project discipline
Focus on controls and accountability.
Insights
Sector Publications
Beyond Compliance: Transforming Audits into Strategic Business Insights
A financial audit shouldn't just be a regulatory checkbox. When executed correctly, an audit acts as a diagnostic tool that uncovers hidden operational inefficiencies...
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Restructuring for Resilience: Why Mid-Market Firms Need Fractional CFOs
Scaling a mid-market enterprise requires financial strategy that goes beyond basic bookkeeping. Discover how Fractional CFOs are providing high-level financial leadership without the full-time...
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The Future of Tax Compliance in Nepal: Navigating the 2026 Shift
As Nepal's regulatory frameworks evolve, businesses must adapt their financial reporting to align with the new digital taxation policies. Here is what you need...
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Frequently Asked Questions
The transition occurs at Commercial Operation Date (COD), defined in the PPA and verified through testing and NEA acceptance. From COD: depreciation begins, interest is expensed rather than capitalised, and revenue recognition begins. Setting the right COD has material P&L impact and is a focus of audit work. Cases where part of the project achieves operation while another part is under expansion require careful capitalisation boundary application.
Under NFRS, borrowing costs directly attributable to the construction of a qualifying asset are capitalised as part of the asset cost during the construction period. The capitalisation rate, the start and end dates of capitalisation, and treatment of temporary suspension are all judgement areas with material effect on capitalised cost. IDC capitalised inappropriately — beyond COD or on non-qualifying borrowing — overstates assets and understates current-period expense.
Hydropower projects have historically benefited from tax holidays under the Income Tax Act 2058 — full exemption for an initial period and reduced rates thereafter, with specific provisions varying by project size, commissioning date, and other criteria. Customs duty concessions apply to project equipment imports under specified conditions. The Industrial Enterprise Act 2076 and successive budgets refine these incentives; the timing of commissioning relative to incentive cut-off dates has material value.
PPA revenue is generally recognised based on energy delivered, metered at the interconnection point, and invoiced under the tariff structure specified in the PPA. Wet and dry season tariffs, deemed generation provisions (when NEA cannot evacuate), penalty provisions, and escalation clauses all affect revenue. Where the PPA contains substantive lease components or embedded derivatives, NFRS 16 and NFRS 9 require careful assessment.
Project lenders typically require periodic financial information — quarterly or half-yearly — reviewed or audited by the company's auditor. Specific covenant compliance certificates, debt service coverage ratio computations, and reserve account maintenance are common requirements. The auditor's report on these is in addition to the annual statutory audit and must align to the lender's facility agreement terms.