Nepal Electricity Authority Resumes Efforts to Collect Outstanding Dedicated and Trunk Line Dues

Kathmandu. The Nepal Electricity Authority (NEA) has once again issued notices to industries to collect long-standing outstanding dues related to dedicated and trunk line electricity tariffs.

The authority has notified various industries, urging them to clear their arrears immediately. During the tenure of the then Energy Minister Kulman Ghising last Ashoj, the NEA had disconnected power to 25 industries that failed to pay their dues. Following the disconnection, many industries paid their first installment.

The NEA had requested these industries to pay the second installment promptly, but except for a few, most industries have been reluctant to do so.

Some industries approached the Electricity Regulatory Commission with review petitions, but the commission dismissed these petitions, clearing the path for the collection of dues.

Following the election on 21 Falgun, a government with nearly a two-thirds majority was formed. The new government has been working on a 100-day action plan.

However, electricity arrears were not included in the 100-day agenda. Despite this, with the Ministry of Energy showing interest, the NEA has resumed sending notices to industries to collect the remaining dues.

The NEA has issued a final notice to industries in the Bhairahawa region to pay the installments for the remaining dedicated and trunk line electricity tariffs.

The letter sent by the distribution center to the industries states, 'Despite repeated public notices and correspondence to pay the arrears from Magh 2072 to Baishakh 2075, the industries have ignored the requests.' According to the notice published in Gorkhapatra on 2082/06/12, the NEA provided an installment facility of up to 28 months. However, the industries have only paid one installment so far.

The letter clarifies that all consumers, except those with interim orders from the court, must pay their installments. It states, 'Please pay the remaining installments as soon as possible; otherwise, action will be taken in accordance with the Nepal Electricity Authority Electricity Tariff Collection Regulations, 2078.'

The NEA has previously issued notices through Gorkhapatra on various dates urging industrialists to pay their dues, warning that power supply to non-compliant industries could be disconnected.

While the NEA warns of action under the 2078 regulations, industrialists claim this move contradicts the Supreme Court's order and the directives of the Office of the Prime Minister and Council of Ministers.

On Kartik 21, the Prime Minister's Office directed the Ministry of Energy and the NEA to arrange for an administrative review of the dedicated and trunk line dispute.

The government had agreed to a middle-ground proposal put forward by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Dhakal, which involved paying dues in installments while keeping legal avenues open.

However, after the NEA failed to proceed with the administrative review, the industrialists went to court. On Mangsir 22, the Supreme Court issued an order to the Ministry of Energy and the NEA to implement the Prime Minister's Office's directive.

The NEA has provided a facility to pay the total outstanding amount in 28 installments. Fearing power disconnection, some large industries have already paid their second installment. Ashok Steel has paid 6.3 million rupees as a second installment.

This industry still owes the NEA a total of 175.81 million rupees. Similarly, Hulas Steel Industries Pvt. Ltd. has paid a second installment of 5.043 million rupees. Hulas Steel's total outstanding amount is 141.205 million rupees.

During the load-shedding period, the NEA provided 20 hours of electricity through trunk lines and 24 hours through dedicated feeders to industries on the condition of paying an additional 65 percent premium fee.

There were more than 250 customers using this electricity. However, some industries have been reluctant to pay the dues from the beginning. Arrears of approximately 7.5 billion rupees from 46 industries for the period between Magh 072 and Baishakh 075 remain to be collected.

For the past five months, the collection of industrial electricity arrears has been almost at a standstill. When Kulman Ghising became the Energy Minister in the interim government, most industrialists started paying installments in Kartik. However, after Kulman resigned as Energy Minister in Poush, the collection process stalled.

It was found that 58 industries were required to pay dues for the period from Magh 072 to Baishakh 075. Of these, 12 industries have paid all their dues. Two government industries have provided written commitments to pay. Following the latest action, 35 industries had entered the installment payment process.

Out of the total 5.9456 billion rupees in arrears for electricity consumed by industries during the load-shedding period, only 238.772 million rupees have been collected so far. A total of 5.7068 billion rupees remains to be collected.

Reliance Spinning Mills received an interim order after paying its first installment. Including Reliance, seven industries have obtained interim orders against the NEA from the court. Three additional industries have not even come forward to pay their dues.

Arrears from 46 industries, including government entities, those that stopped paying installments, those with interim orders, and those not in contact, remain to be collected.