NEA-Industrialists Dispute Over Unpaid Bills Remains Unresolved; NEA Offers 28-Month Installment Plan
The ongoing dispute between the Nepal Electricity Authority (NEA) and industrialists over unpaid bills for dedicated feeder lines remains unresolved, with both parties firmly maintaining their positions.
The issue has resurfaced as the NEA intensifies efforts to disconnect electricity supply lines to industrialists who have not paid their outstanding dues. Recently, the NEA cut the electricity supply to five production plants: Arghakhachi Cement, Reliance Spinning Mills, Gorahi Cement, Jagadamba Synthetic, and Hulas Steel.
A total of 61 manufacturing companies owe a cumulative Rs 6.60 billion in unpaid bills. According to an NEA official, the power utility plans to successively disconnect the electricity lines of the remaining 56 companies if they do not demonstrate an intention to pay.
In 2015, during periods of load shedding, the NEA enforced a rule imposing additional fees on industries consuming large amounts of energy through dedicated feeder and trunk lines. A 65 percent premium charge was applied on top of the normal tariff for these users. Dedicated feeder service allowed factories requiring high voltage lines to receive direct electricity from nearby substations, while trunk line users received electricity directly through two substations.
Manufacturers have refused to pay the dues, arguing that the NEA continued to charge the premium even after the official end of load shedding. To address the issue, the government formed a committee on January 9, led by former Supreme Court Justice Girish Chandra Lal, with joint secretaries from the Ministry of Energy, Water Resources, and Irrigation (MoEWRI) and the Ministry of Industry, Commerce, and Supplies (MoICS) as members.
The committee recommended that the NEA charge premium rates for electricity used between February 2016 and April 2018, with a special fee based on consumption recorded by the Time of the Day (TOD) meter. On June 23, the NEA issued a notice giving companies a 15-day deadline to clear their dues, which ended last Monday. The industrialists did not comply within the stipulated timeline.
The NEA has declined to implement the committee's recommendations and, after sending an excel sheet record of electricity use to the manufacturers, faced further excuses for non-payment. Manufacturers are now reportedly seeking leniency from the newly formed government.
In a recent development, the NEA's board decided on Thursday to allow industrialists to clear their outstanding dues for dedicated feeders in 28-month installments. This measure aims to ease the financial burden on companies during the ongoing business slowdown.
