Thursday, November 21st, 2024

Cabinet decision halts NEA’s dues repayment installment scheme for industries


13 November 2024  

Time taken to read : 3 Minute


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KATHMANDU: The Nepal Electricity Authority (NEA) has warned that the installment scheme offered to industries with outstanding dues on dedicated feeder and trunkline usage may be discontinued.

The NEA had previously introduced a payment plan allowing up to 56 installments for these dues.

However, following the Cabinet’s directive on Sunday to collect dues within 15 days, it now appears that this option may no longer be available to industries.

The NEA had issued notices to 49 industries, setting a deadline of Kartik 8 to clear outstanding debts accumulated between Magh 2072 and Baisakh 2075.

After this deadline passed, the NEA disconnected power for 34 industries for the fourth time due to non-payment.

In response to the Cabinet’s directive to immediately reconnect power to industries and recover dues within 15 days, the NEA Board met on Tuesday and reconnected electricity for affected industries, according to NEA spokesperson Chandan Kumar Ghosh.

In a press conference on Wednesday, NEA Managing Director Kulman Ghising stated that reconnections were underway as per government instructions.

However, he emphasized that if payments are not made within the next 15 days, the NEA would proceed with legal actions, including possible disconnections.

“So far, 28 industries have not paid even a single installment. After the government directive, we are enforcing compliance. If these 28 industries do not settle dues within 15 days, we will follow through with the process, which may lead to disconnection,” Ghising stated.

The Cabinet also instructed the Ministry of Energy, Water Resources, and Irrigation to ensure dues are collected from industries using dedicated feeder and trunkline connections, based on Time of Day (TOD) meter readings, within 15 days.

Ghising asserted that NEA’s billing calculations, verified by regulatory bodies, have been deemed accurate.

“The dedicated trunkline bills are correct and based on TOD meter data. Various authorities, including the Public Accounts Committee, have dismissed objections to the bill’s accuracy,” Ghising said.

The NEA’s regulatory authority had previously instructed NEA not to reconnect power unless a single installment was paid.

However, reconnections are currently in process following the Cabinet’s directive.

“Repeated disconnections and reconnections should not be the solution. We must aim for a permanent resolution,” Ghising stated, adding that in the past, the NEA had allowed power reconnections upon partial installment payments.

Publish Date : 13 November 2024 19:11 PM

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