Nepal Electricity Authority Faces Rs 50.01 Billion Unpaid Dues

Biratnagar. Nepal Electricity Authority has accumulated electricity tariff arrears of Rs 50.01 billion that it has not been able to collect for a long time. Energy, Water Resources and Irrigation Minister Birajbhakta Shrestha has directed the Authority to collect the amount, which was pointed out by the 63rd report of the Auditor General.

The ministry has also made public the details (list) of electricity arrears. According to the public details, large industrial houses to local levels owe billions of rupees in tariffs.

According to the arrears details of 'Dedicated Feeder and Trunk Line' published by the Nepal Electricity Authority, industries under the Madhesh Provincial Office have the highest arrears. Industries in the Birgunj and Simara areas alone owe more than Rs 12.0383 billion.

Of this, Jagdamba Steel Pvt. Ltd. has arrears of Rs 4.693945498 billion.

Similarly, Shivam Cement owes Rs 2.491110938 billion. Reliance Spinning Mills in the Biratnagar area of Koshi Province has arrears of Rs 2.193121361 billion, Maruti Cement Pvt. Ltd. of Siraha owes Rs 1.382193778 billion, and Ashok Steel owes Rs 0.969267249 billion.

Even the government-owned Udayapur Cement Industry has arrears of Rs 0.5815 billion in the list.

The situation of industries in the Parasi and Bhairahawa areas of Lumbini Province is also similar. The total arrears of industries in this area have exceeded Rs 5.3459 billion. Of this, Laxmi Steel owes Rs 1.124380101 billion and Sarbottam Cement owes Rs 0.927905502 billion.

Arghakhanchi Cement Industry's Rs 1.5026 billion and Vishal Cement's Rs 0.0410 billion are also yet to be collected. The arrears from 'Dedicated Feeder and Trunk Line' alone published by the Authority amount to Rs 26.958896 billion.

Another large portion of the arrears is from streetlights used by local levels. According to the data published by the Authority, the arrears for streetlights from local levels in all 7 provinces have reached billions. The arrears for streetlights from local levels in Sudurpashchim Province alone have reached Rs 7.948754 billion. With a 25% additional fee, this amount reaches Rs 9.935943517 billion, according to the Authority's details. In this province, Dhangadhi Sub-Metropolitan City, Bhimdutt Municipality, and Tikapur Municipality have arrears in the billions.

The situation of streetlight arrears in Madhesh Province is also dire. In the Janakpur area alone, there are arrears of more than Rs 44.1 million, while municipalities in the Lahan, Rajbiraj, and Jaleshwor areas have millions of rupees in outstanding tariffs. According to the details, Jaleshwor Municipality has arrears of Rs 77.741 million and Malangawa Municipality has arrears of Rs 91.277 million. In Madhesh Province alone, there are Rs 2.349059 billion in arrears.

In Koshi Province, Biratnagar Metropolitan City has arrears of Rs 153.248 million and Budhiganga Rural Municipality has arrears of Rs 91.548 million. A total of Rs 701.155 million in arrears is yet to be collected in Koshi Province.

In Bagmati Province, there are arrears of Rs 3.595346 billion. Of this, Kathmandu Metropolitan City alone has arrears of Rs 1.986371 billion.

Similarly, Gandaki Province has arrears of Rs 204.125 million, Lumbini Province has Rs 787.5 million, and Karnali Province has Rs 52.316 million in arrears.

In a meeting of the Authority's board of directors and senior management, Energy Minister Biraj Bhakta Shrestha directed that the collection of arrears be kept on the daily agenda and moved forward. Minister Shrestha stated that the Authority should not delay in collecting arrears from all sectors except those in legal proceedings. 'Do as the law and rules dictate, whatever the process may be. There should be no favoritism,' he said.

The government has taken this seriously after the 63rd report of the Auditor General showed arrears of Rs 50.01 billion. The Authority is currently preparing to collect arrears from all titles including dedicated, trunk lines, internet service providers, and streetlights, including correspondence and, if necessary, cutting off lines.