Nepal Electricity Authority (NEA) once again cut off power supply to the industries that failed to pay their overdue tariffs for electricity consumed via dedicated feeder and trunk lines within the specified deadline on Thursday.
Despite reservations by Energy Minister Deepak Khadka, who also chairs the NEA board, NEA Executive Director Kulman Ghising ordered the disconnection of power supply to industries with outstanding dues. Following Ghising's directive, distribution centres cut off power to the respective industries on Thursday evening.
“Except for five industries that began clearing their dues in instalments and Reliance Spinning Mills, which is under legal proceedings, power to the remaining 43 industries has been disconnected,” said Ghising in an interview with New Business Age. According to NEA spokesperson Chandan Kumar Ghosh, five industries, including Rolpa Cement, have made partial payments as their first instalment. NEA had issued a public notice on October 10, requiring 49 industries to pay Rs 8.04 billion in dues, including penalties within two weeks.
Previously, on July 9, NEA disconnected power to six industries due to non-payment. Later, in response to a verbal instruction from Prime Minister KP Sharma Oli and a written order from the Electricity Regulatory Commission, the NEA board agreed to reconnect power to these industries on the condition that they settle their dues within three months.
With most industries still failing to pay their dues after the three-month period, the NEA board convened on Thursday morning to discuss further action but was unable to reach a decision.
During the meeting, Minister Khadka reportedly told Ghising not to disconnect the power supply to the industries, a board member informed New Business Age on condition of anonymity. “Since this issue is under discussion in a parliamentary committee, the minister suggested not cutting off power immediately,” the member said.
Ghising, however, is said to have asserted that since no written instruction has been received, the NEA would proceed according to the law.
“We have submitted all necessary documents to the concerned bodies, and they have all urged us to recover the dues. Hence, we aim to proceed legally against defaulters,” he told New Business Age.
Following Ghising’s move to disconnect power, Minister Khadka briefed the cabinet on the issue on Thursday, stating that as the matter is under parliamentary review, any further action should follow committee instructions. After the government refrained from issuing any specific directive and with no decision from the NEA board, Ghising met with some defaulting industrialists on Thursday afternoon to discuss the matter. During the meeting, he offered to increase the instalment period to make it easier for industries to settle their dues.
Previously, NEA had proposed a 28-month instalment plan for industrial dues, which the industrialists rejected. In a discussion between NEA and the industrialists on Thursday afternoon, Ghising reportedly stated that if they were willing to pay, the instalment period could be extended from 28 to 60 months, according to a board member. An industrialist present at the meeting confirmed the proposal to increase the number of instalments.
“In our discussion, Kulman Sir proposed that the instalment period could be extended from 28 months if we are willing to pay,” said Raghunandan Maru, president of the Nepal Cement Manufacturers Association. “However, we have rejected this proposal. NEA has not provided clear evidence that the power used by industries was indeed through the dedicated feeder and trunk line. Therefore, agreeing or disagreeing with the instalment plan holds no meaning.”
According to him, the industrialists are willing to pay if the NEA can provide data from the Time of Day (ToD) meters they requested. Ghising disconnected the power against the minister's wishes amid a period of strained relations with both the Prime Minister and the Energy Minister. Minister Khadka had previously issued a 15-point clarification to Ghising which he is likely to submit soon.