The deadline set by the Nepal Electricity Authority (NEA) for industrialists to clear arrears related to electricity used through dedicated feeders and trunk lines expires today, Thursday. According to the NEA, no industrialist had submitted the outstanding amount within the deadline. A total of 49 industries still owe approximately Rs 8.4 billion in arrears, including fines.

The NEA had previously cut off the power supply to six industries to pressure industrialists who failed to settle their dues, despite repeated warnings. However, following direct verbal instructions from Prime Minister Oli and written directives from the Electricity Regulatory Commission, the NEA's Board of Directors reinstated the power supply to these industries on July 24. The reconnection came on the condition that if the arrears were not cleared within three months, further action would be taken to recover the outstanding payments.

NEA Executive Director Kulman Ghising stated that the authority is prepared to take legal action if the dues are not paid within the deadline. "The same penalties that apply to general customers who do not pay their tariffs will be enforced for industrialists. This could include measures such as cutting off the power supply, as permitted by law," Ghising said. He also noted that discussions are ongoing with the Ministry of Energy and the Department of Electricity Development regarding the issue.

Industrialists have argued that the NEA has not provided satisfactory bills or the necessary data from the Time of Day (TOD) meters, which has led to delays in clearing the arrears.

There is no written instruction from the government to collect 22 billion: NEA

On October 10, the Nepal Electricity Authority (NEA) issued a notice to 49 industries, instructing them to pay outstanding arrears amounting to approximately Rs 8.4 billion.  

Prior to this, on October 8, the authority had sent separate letters to these industries, urging them to clear their dues. On August 25, Prime Minister KP Sharma Oli posted on Facebook, stating that not just Rs 6 billion but Rs. 22 billion should be collected from industrialists. 

Initially, the Prime Minister opposed the authority's effort to recover Rs 8 billion but later revised his stance, demanding Rs 22 billion through social media after facing widespread criticism. However, the authority is not seeking to immediately collect the full Rs 22 billion. "Since there are no written instructions from the government to raise Rs. 22 billion, we are currently focused on collecting over Rs 8 billion in arrears, which are not legally disputed," said NEA Executive Director Kulman Ghising in an interview with New Business Age. He added, "We are trying to collect the arrears from the period that is not under legal review."

Previously, when the Auditor General identified arrears of Rs 21.88 billion, industrialists refused to pay. In response, the then Pushpa Kamal Dahal-led government formed a commission under former Supreme Court Justice Girish Chandra Lal to investigate the issue. 

Based on the commission’s recommendations, the government decided to collect Rs. 6 billion in arrears. Prime Minister Oli’s party, CPN (UML), was also part of the coalition government that made this decision. Now, the NEA is trying to collect Rs 8.4 billion, which includes a Rs 2 billion penalty added to the commission's recommended amount. 

The current government became upset with the NEA’s leadership after the authority halted electricity supply in June to pressure industrialists to pay their dues.

According to the NEA, companies such as Jagdamba Steel, Reliance Spinning Mills, Shivam Cement, Maruti Cement, Ghorahi Cement, Arghakhanchi Cement, Hulas Steel, Laxmi Steel, Butwal Cement, and Sarvottam Cement owe approximately Rs 8.4 billion, including fines.