ERC Orders NEA to Restore Electricity Supply to Six Industries Amid Ongoing Dispute
The Electricity Regulatory Commission (ERC) has directed the Nepal Electricity Authority (NEA) to reconnect the electricity supply to six manufacturers, escalating the ongoing conflict over pending bills for dedicated feeder use.
The ERC, in a letter issued on Sunday, pressured the NEA to restore the power lines, following the latter’s refusal to comply with verbal instructions from Prime Minister KP Sharma Oli. The government has leveraged the regulatory body to enforce its directive after the NEA’s initial noncompliance.
ERC Chairperson Ram Prasad Dhital confirmed the directive, citing the Electricity Consumer Welfare Protection Directive as the basis for the order. “Based on the clause of the directive, we have directed the NEA to reconnect the lines,” Dhital stated.
This development comes after the NEA’s board meeting on Friday, chaired by Energy Minister Deepak Khadka, decided against reconnecting power lines to the six industries. The decision was made despite the prime minister's verbal order. Other board members, including the Secretary at the Ministry of Energy and the Secretary at the Revenue Department, rejected Minister Khadka’s proposal to restore the power immediately, insisting on formal arrangements.
The dispute centers around the additional fees imposed by the NEA in 2015 for the use of dedicated feeder and trunk lines during load-shedding periods. These fees have been a point of contention between the NEA and industrialists, who argue against paying premium charges for specific periods.
In response to the dispute, the government formed a committee led by former Supreme Court Justice Girish Chandra Lal. The committee recommended waiving the premium charges for the initial six months and for the period beyond June 2018 when load shedding ended in the country. Despite these recommendations, the NEA recently cut the electricity supply to several production plants, including Arghakhachi Cement, Reliance Spinning Mills, Gorahi Cement, Jagadamba Synthetic, and Hulas Steel, and warned of further disconnections.
The NEA maintains that 61 manufacturing companies owe cumulative dues of Rs 6.60 billion, and it intends to continue cutting electricity lines for non-compliance. The ongoing conflict highlights the tension between the government’s directives and the NEA’s enforcement of tariff regulations.
