58% of industries resort to generators due to inadequate electricity supply: CNI

KATHMANDU, Aug 13: Amid the ongoing problems faced by the Nepal Electricity Authority (NEA) to provide consistent and high-quality electricity, a staggering 57.89 percent of industries have resorted to utilizing generators as an alternative power source.

The recently released industrial survey report by the Confederation of Nepalese Industries (CNI) sheds light on the prevalent issue of inadequate electricity supply. Due to the persistent lack of dependable and quality electricity from the NEA, many industries have been compelled to invest in generators to maintain their operations.

This necessary reliance on generators has resulted in a significant 8.05 percent increase in production costs for the manufacturing sector. Regrettably, this situation has consequently eroded the competitive edge of industries in Nepal.

The CNI study further reveals that industrialists have consistently voiced concerns regarding the below par quality of electricity supplied by the NEA. The inability of the authority to fulfill its electricity supply commitments has been attributed to insufficient investments in critical infrastructure such as transmission and distribution lines, as well as transformers.

Moreover, the consequences of power tripping during industrial operations extend beyond mere inconvenience. Raw materials are often compromised, leading to heightened production costs and reduced operational efficiency.

The mismanagement of electricity production by independent power producers, coupled with the NEA's inability to maintain voltage consistency, has amplified the challenges faced by industries. 

Addressing these challenges, the CNI report advocates for the allocation of specific feeders dedicated to commercial purposes, a measure that industrialists believe could enhance the overall electricity supply experience.

Industrial stakeholders assert that the provision of consistent, high-quality electricity is not only crucial for reducing operational costs but also for revitalizing the industry's competitiveness.