The Nepal Electricity Authority (NEA) has disconnected power supply to six major industrial firms for failing to clear long-standing electricity dues accrued from the use of dedicated and trunk lines.
According to NEA spokesperson Rajan Dhakal, the power supply to Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills was cut off on Sunday morning after repeated reminders went unheeded.
“The lines of these industries were disconnected after they failed to pay electricity bills despite multiple notices and sufficient time,” Dhakal said.
The dispute over the payment of electricity tariffs for dedicated and trunk lines dates back to 2018, when the issue first came to light. A special committee led by then NEA board member Bhakta Bahadur Pun conducted a detailed study and submitted a report to the NEA board meeting on May 14, 2018, highlighting the significant amount of unpaid dues.
Since then, the NEA has been pursuing the recovery of the arrears, but the process has remained stalled due to legal and procedural complications. The matter has reached various state bodies, including the Public Accounts Committee of the Federal Parliament, the Commission for the Investigation of Abuse of Authority (CIAA), and even the courts, as industries contested the NEA’s claim.
Industrialists have argued that they should not be charged for dedicated or trunk lines, asserting that they never used such facilities. However, NEA maintains that the charges are legitimate and governed by its regulations.
In its most recent attempt to recover dues, the NEA had issued a public notice on September 28, giving the defaulting companies 21 days to clear their outstanding payments. The authority had also offered the option to pay the dues in installments, but the companies reportedly failed to comply within the deadline.
Dhakal said the decision to disconnect the electricity supply was in line with the Electricity Tariff Collection Regulations, 2078 (2021). “The NEA was left with no choice but to enforce the disconnection after repeated non-compliance,” he added.
The disconnection of power to some of Nepal’s largest industrial producers is expected to have ripple effects on production and employment in the manufacturing sector, with industry leaders urging the government to mediate and resolve the long-standing dispute.
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