KATHMANDU: The Nepal Electricity Authority (NEA) has issued a new notice demanding that industries settle their arrears related to Dedicated and Trunk Line charges by October 24. This move follows a previous directive from Prime Minister KP Sharma Oli to restore power supplies to industries whose connections were cut off. The NEA had resumed power supply on July 24 after a hiatus and is now seeking payment of approximately Rs 6.5 billion in outstanding dues.
The dispute over these charges has been ongoing for years and remains unresolved, causing continued friction between ruling parties and opposition groups. The issue, which has stalled in the Public Accounts Committee of Parliament, has become more contentious with the NEA’s latest demands.
Previously, the NEA had sent a notice on June 10, instructing 61 industries to settle their dues within 15 days. When the industries failed to comply, the NEA cut power to several major players, including Arghakhanchi Cement and Jagdamba Cement, between July 10 and 12. This action heightened tensions and left nearly Rs 6.7 billion in unpaid dues.
After Prime Minister Oli’s intervention, the NEA reconnected power on July 23, with an agreement to collect the outstanding dues within a three-month deadline. Despite the government’s repeated efforts over the past nine years to resolve the dispute, including various commissions and directives, a final resolution remains elusive.
The Lal Commission, established to address the issue, found that industries were willing to pay but argued that the NEA had disconnected power unjustly. According to the commission’s report, the NEA was directed to follow the Consumer Protection Directive 2080, which stipulates that power should not be cut before complaints are resolved.
The ongoing dispute dates back to 2018 and involves disagreements over the payment of electricity tariffs for services provided through dedicated feeders and trunk lines. The NEA has repeatedly cut and restored power in response to these disputes.
The Lal Commission had recommended that no additional charges be collected from July 2015 to December 2018, and from April 2018 onwards. For dedicated feeders, charges should be based on legal proof from January 2016, and for trunk lines, from July 1, 2016.
The Cabinet had instructed the NEA to adhere to these recommendations, but industries are demanding concrete evidence of their electricity usage. The NEA’s latest notice reiterates the need for settlement by the October 24 deadline, aiming to resolve the long-standing issues surrounding these charges.
The dispute has seen numerous legal and administrative challenges, with the NEA and industries locked in a protracted battle over the fairness and legality of the charges. The government’s intervention and the formation of various commissions highlight the complexity and persistence of the issue.
As the deadline approaches, both the NEA and the industries are expected to continue their negotiations. The resolution of this dispute is crucial for maintaining industrial operations and ensuring fair practices in electricity billing.
The situation remains fluid, with ongoing debates and legal scrutiny shaping the future of electricity tariff collections and dispute resolution mechanisms in Nepal.
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