KATHMANDU: The Nepal Electricity Authority (NEA) on Tuesday disconnected power lines to six large industries that failed to clear outstanding dues related to the use of dedicated and trunk lines.
Power supply to Triveni Spinning Mills, Shivam Cement, Jagadamba Steels, Reliance Spinning Mills, Ghorahi Cement, and Argakhanchi Cement was cut off after repeated notices to settle their arrears went unheeded, NEA spokesperson Rajan Dhakal said.
“Thirty-one industries still have unpaid dues. We disconnected six major ones today, and discussions are underway on further action against others,” Dhakal said.
The NEA had issued a 21-day public notice on September 28, asking industries using dedicated feeders and trunk lines to clear their dues by October 19. The authority had also allowed those unable to make lump-sum payments to pay in 28 monthly installments. However, as no industries came forward to settle their accounts within the deadline, the NEA began cutting their lines.
According to NEA data, Jagdamba Steels owes Rs 1.6 billion, Shivam Cement Rs 778.8 million, Reliance Spinning Mills Rs 753.7 million, Ghorahi Cement Rs 508.5 million, Argakhanchi Cement Rs 448.4 million, and Triveni Spinning Mills Rs 321 million. These dues date back to January 2016 to April 2018, when the industries allegedly consumed power through dedicated lines without paying the proper fees.
The dispute over dedicated feeder and trunk-line charges, one of the longest-running issues between the NEA and industrialists, had earlier been reviewed by a commission led by Girish Chandra Lal, formed under the government of then Prime Minister Pushpa Kamal Dahal ‘Prachanda’. The commission had recommended a negotiated settlement.
However, after the KP Sharma Oli government dismissed NEA Managing Director Kulman Ghising, the authority temporarily halted its collection efforts and offered industries another review opportunity in April this year.
Following the Gen-Z movement, Ghising was appointed Energy Minsiter of the interim government, and one of his first policy moves was to resume the recovery drive. Tuesday’s disconnections mark the beginning of NEA’s renewed effort to collect billions in long-pending dues.
Meanwhile, 26 industries had written a joint letter to Prime Minister Sushila Karki on October 17, requesting that the NEA refrain from cutting their power lines and arguing they were unfairly excluded from the review process. With disconnections now underway, tensions between the NEA and private industries appear set to escalate once again.
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