NEA Urges Action Against Defaulters After Government Bars Electricity Disconnection

Despite a government directive preventing electricity disconnections, the Nepal Electricity Authority (NEA) has sought alternative measures against industrial defaulters who failed to pay dues for using dedicated feeder and trunk lines.

The NEA had initially planned to cut power to 34 industries as the deadline to clear arrears ended on Wednesday. However, intervention from the government and the Electricity Regulatory Commission (ERC) halted this action. In response, the NEA has written to regulatory bodies, including Nepal Rastra Bank, requesting a freeze on the defaulters’ bank accounts. Letters were also sent to the Office of the Company Registrar and the Securities Board of Nepal, urging them to suspend share-related transactions of the defaulting companies until they settle their dues.

Previously, the Council of Ministers and NEA's Board of Directors had issued a 15-day deadline for industries to pay their arrears. However, a report by a technical committee under the ERC, chaired by former Supreme Court Justice Girish Chandra Lal, is still determining the final outstanding dues. Until this task is complete, the ERC has directed the NEA to refrain from disconnecting electricity lines.

Energy Minister Deepak Khadka also endorsed this decision through an NEA board meeting. While the government advocates leniency, the NEA continues to push for accountability, highlighting the long-standing issue of unpaid bills for facilities utilized during the load-shedding period.