KATHMANDU: As Prime Minister (PM) KP Oli and Finance Minister Bishnu Prasad Paudel were busy congratulating each other after taking their oaths of office on Monday at Sheetal Niwas, a large delegation of industrialists reached Baluwatar and Singha Durbar with a list of what they called “urgent demands”.
One key request from the industrialists was for the government to waive the electricity tariffs for dedicated feeders, totaling approximately 8.5 billion rupees.
They urged that electricity supply should not be cut off, even if industrialists fail to pay their substantial arrears.
A team led by Chandra Dhakal, President of the Federation of Nepal Chamber of Commerce and Industry (FNCCI), along with outgoing President Shekhar Golcha, met with both the Prime Minister and Finance Minister to express their concerns.
During the meeting, Dhakal emphasized the need for an immediate resolution to the ongoing disputes regarding dedicated feeders and trunk lines, advocating for an environment where entrepreneurs can operate safely and efficiently.
Meanwhile, it may be noted that the Nepal Electricity Authority (NEA) cut off the power lines of Arghakhanchi Cement, Ghorahi Cement, and Reliance Spinning Mill on July 9, 2024 due to non-payment of electricity tariffs for consumption from dedicated feeders and trunk lines.
According to the NEA’s records, Arghakhanchi Cement, owned by Pashupati Murarka, owes over Rs 448.4 million for the dedicated line used during load shedding.
Similarly, Ghorahi Cement, based in Dang, has an outstanding amount of more than Rs 508.5 million for the same period.
Reliance Spinning Mills of Itahari, whose power was also cut on July 9, owes over Rs 753.6 million in electricity tariffs.
The day after cutting off the three industries, Hulas Steel in Simara also had its line disconnected on the same date due to an unpaid bill of Rs 14 million for the dedicated line used during load shedding.
The Jagdamba Steel Pvt Ltd in Simara also had its line cut as well, with outstanding dues amounting to Rs 1.6 billion.
Meanwhile, the NEA issued a notice in Gorkhapatra on July 15, urging industries to pay their tariffs for electricity consumed from February 2016 to April 2018 (the load shedding period).
The NEA has offered a concession to industries unable to pay in full, allowing them to settle the total amount over 28 months in installments.
The government led by Pushpa Kamal Dahal Prachanda, along with the CPN-UML, decided on May 9, 2024, based on the recommendation of the Girish Chandra Lal Commission, to pay the tariff for electricity used during load shedding.
Following this decision, the Ministry of Energy sent a letter to the Nepal Electricity Authority on June 2, 2024, instructing them to collect fees from industrialists for the specified period.
After receiving the Ministry’s letter, the Authority’s Steering Committee met on June 21 and decided to notify industries to pay the fees for the 28-month load shedding period within 15 days.
However, due to continued non-compliance from the industrialists, NEA Authority began cutting off the Bhatbhateni line.
57 industries owe approximately 8.5 billion
According to the Nepal Electricity Authority, 57 industries that utilized electricity 24/7 from dedicated lines during the 28 months of load shedding owe a total of Rs 8.47 billion, including additional fees, to the government.
Notably, there are prominent industries in Biratnagar, Duhabi, Itahari, Simara, Hetauda, Bhairahawa, Butwal, Dang, Nepalgunj, and other regions that have not paid their dues.
These industries have been seeking exemptions from electricity tariffs, often resorting to court or negotiations with the government.
See the list of 57 exempted industries:
Meanwhile, the Lal Commission, formed by the government to resolve the dispute over dedicated feeders and trunk lines, has categorized the issue into three distinct groups.
Based on these recommendations, the Council of Ministers has decided to collect fees only during load shedding on May 9, 2024.
The government has opted not to impose tolls before or after load shedding, given that the case is still pending in court.
However, industrialists are rejecting the Lal Commission’s report and are attempting to pressure the power center by stating they will not pay fees during load shedding.
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