The Nepal Electricity Authority (NEA) Board of Directors on Wednesday decided not to disconnect electricity supply to industries defaulting on payments for dedicated feeders and trunk lines. Instead, the NEA has opted for alternative measures to recover the arrears.
NEA Executive Director Kulman Ghising previously sought to disconnect power to defaulting industries but faced resistance due to insufficient government backing. Consequently, the NEA has begun contacting regulatory agencies to freeze bank accounts, restrict share transfers, and block IPO approvals for the defaulters.
On Wednesday, the NEA sent a letter to Nepal Rastra Bank (NRB), requesting that withdrawals be restricted from the accounts of 34 industries while allowing deposits. These industries collectively owe Rs 6.40 billion in unpaid dues to the NEA.
The NEA has also requested the Office of the Company Registrar to freeze shares held by defaulters and their directors in other companies, preventing their use as collateral or transfer. Similarly, the NEA has approached the Securities Board of Nepal (SEBON) to deny IPO approvals for defaulting companies.
One of the defaulters, Reliance Spinning Mills, has applied for IPO approval. NEA has informed Pure Energy Limited and Hyatt Place Hotel that arrears owed by Pawan Golyan, the owner of Reliance Spinning Mills and an investor in these companies, will be deducted from their payments due under electricity purchase agreements.
Director Ghising noted that the NEA adopted these measures following a directive from the Electricity Regulatory Commission to explore alternatives to power disconnections, which could impact government revenue. The NEA Board endorsed this approach during its board meeting on Wednesday.
Earlier, Ghising faced criticism for ordering power cuts to 34 defaulters on October 24 without a guarantee of arrears recovery. While some connections were severed, others remained active due to court orders. The NEA’s 15-day deadline for repayment expired on Wednesday, but the Board opted against further disconnections.
Board member Kapil Acharya criticized the absence of a structured recovery plan, questioning why no repayment timeline or penalties were established. Meanwhile, Energy Minister Deepak Khadka instructed recalculations of arrears based on Time of Day (TOD) meters and ordered reconnections for previously disconnected industries. By November 13, electricity supply was restored to all 28 industries that had not cleared their dues.
