NEA Reissues Notice to Settle Rs 6.5 Billion in Arrears Amid Ongoing Dedicated Line Dispute

The Nepal Electricity Authority (NEA) has issued another notice to industries, urging them to settle outstanding arrears related to Dedicated and Trunk Line charges by October 24. This follows Prime Minister KP Sharma Oli’s directive to restore power supply to industries whose connections had been cut off earlier. The NEA resumed supply on July 24, but the unsettled dues, totaling approximately Rs 6.5 billion, remain a point of contention.

The longstanding dispute between the NEA and industries has escalated over unpaid charges for services through dedicated and trunk lines, with the issue now stalled in the Public Accounts Committee of parliament. Despite earlier notices, including one sent in June, industries have not complied with the NEA's demands. In response, the NEA disconnected power to several major industries in July, including Arghakhanchi Cement, Jagdamba Cement, and Ghorahi Cement, before resuming supply on the Prime Minister's directive.

Efforts to resolve the nine-year dispute have included the formation of a government-led commission, known as the Lal Commission, which recommended the settlement of charges based on legal evidence. However, despite government intervention and ongoing discussions, no final resolution has been reached, with industries requesting proof of their electricity usage and fairness in billing.