Industries Agree to Pay First Installment Disputed Electricity Dues as Security Deposit, NEA Demands Installment

Defaulting industries owing dues for the usage of dedicated feeders and trunk lines have agreed to pay the first installment as a security deposit, based on a middle-ground proposal initiated by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). However, the industries have set several conditions, and it remains unclear whether the government and the Nepal Electricity Authority (NEA) will accept them.

Following discussions with affected industries, FNCCI on Monday proposed that the NEA reconnect disconnected power lines immediately after receiving the first installment as a deposit, and allow industries to pursue legal review of the dues. FNCCI presented the proposal to the prime minister and relevant ministers.

Responding positively, the group of industrialists issued a statement on Tuesday expressing willingness to deposit the first installment if electricity supply to industries is restored. The group clarified that this should not be interpreted as acceptance of the NEA’s claims.

The industries have demanded written confirmation that the amount paid will be recorded strictly as a security deposit, a written guarantee of immediate reconnection of power supply, and assurance that their legal right to contest the dues in the future will remain intact.

Speaking at a press conference organised by the FNCCI on Tuesday, former president of the Cement Manufacturers’ Association, Dhurba Thapa, said industries are ready with cheques for the deposit. “We are fully prepared to deposit the amount. However, we need written assurance from the NEA that the payment is accepted as a deposit and that disconnected lines will be restored,” he said.

Meanwhile, NEA Executive Director Manoj Silwal stated that electricity supply would be restored once the industries pay the installment, but confirmed no formal discussions have yet taken place between NEA and the industries regarding this arrangement. “It is too early to say what will be done. Once industries come forward with the payment and their demands, NEA will make clear its position,” he said.

Silwal added that while industries may label the payment as a deposit or disputed amount, NEA will treat it as part of the installment plan. FNCCI President Chandra Prasad Dhakal expressed optimism that the long-standing dispute is moving toward resolution rather than further escalation.

Uncertainty Over Subsequent Installments

Despite agreement on paying the first installment as a deposit, uncertainties remain over future payments. Industries have stated they will only deposit the amount equivalent to the first of the 28 installments proposed by the NEA. The NEA has warned that failure to pay subsequent installments could result in disconnection at any time.

Silwal reiterated that industries must continue to pay installments, and any interruption in payment would lead to power being cut again.

Previous Deposit to Be Refunded

Previously, industries had deposited 5 percent of the disputed dues as a security amount while seeking a review of the dedicated feeder and trunk line charges. This was based on the last bill issued by the NEA. However, after Kulman Ghising became Energy Minister and chaired the NEA board, the committee formed to address this issue was dissolved. Following the dissolution, NEA announced it would refund the 5 percent deposit to the industries.