Nepal Electricity Authority Agrees to Reconnect Power Supply to Manufacturers
The Nepal Electricity Authority (NEA) has agreed to reconnect the power supply of six manufacturers on the condition that they clear their outstanding dues within the next three months. This decision comes amid significant pressure from Prime Minister KP Sharma Oli, who opposed the NEA's initial decision to cut the power supply.
During a board meeting held on Monday morning, the NEA consented to reconnect electricity lines to the six industries that have refused to settle dues for dedicated feeders and trunk lines pending for the past nine years. The NEA stipulated that these production plants must clear their dues within the next three months to have their power supply restored. "The NEA board is preparing a meeting minute in this regard," stated a board member of the NEA.
Last week, the state-owned power utility cut power supply lines to Arghakhachi Cement, Reliance Spinning Mills, Ghorahi Cement, Jagadamba Synthetic, Jagadamba Steel, and Hulas Steel. The issue of settling bills for dedicated feeders and trunk lines has reached a stalemate, with the NEA firm on recovering the outstanding dues while industrialists have refused to pay, citing various reasons. According to the NEA, a total of 61 companies owe Rs 6.60 billion for dedicated feeders and trunk lines, with an additional 25 percent fine.
The outstanding dues include Rs 1.60 billion from Jagadamba Steel, Rs 753.6 million from Reliance Spinning Mills, Rs 448.6 million from Arghakhachi Cement, Rs 205 million from Jagadamba Synthetic, and Rs 141.2 million from Hulas Steel. The NEA had disconnected the electricity lines of these manufacturers due to their defaults.
However, the NEA faced pressure to reverse its decision following the formation of a new government led by Prime Minister Oli. On Friday, Oli gave direct instructions to the NEA to reconnect the electricity lines of these companies. Despite these verbal instructions, the NEA initially decided not to reconnect the lines.
In response, the Electricity Regulatory Commission on Sunday wrote to the NEA, pressuring the utility to reconnect the electricity lines. Following mounting pressures from both the Prime Minister and the sector’s regulator, the NEA has now decided to restore the power supply under the new conditions.
In sessions of the House of Representatives on Sunday and Monday, Prime Minister Oli explained his stance on the disputes between the industrialists and the NEA. "I have never mentioned that the industrialists must not have to pay the bills of the electricity they had used. I only meant to end the long stalemate through dialogue," he stated.
