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ECONOMY

ERC rules in favor of NEA in dedicated line arrears case

While hearing complaints filed by two industries, the ERC ruled that NEA’s decision to recover outstanding dues was valid and refused to issue an interim order.
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By REPUBLICA

KATHMANDU, Nov 17: The Electricity Regulatory Commission (ERC) has upheld the Nepal Electricity Authority’s (NEA) decision regarding the dispute over ‘dedicated’ and ‘trunk line’ electricity tariffs.



While hearing complaints filed by two industries, the ERC ruled that NEA’s decision to recover outstanding dues was valid and refused to issue an interim order.


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The complaints were lodged by Panchakanya Plastic Industries Pvt Ltd and Panchakanya Steel, which had long been refusing to pay the electricity tariff for the dedicated and trunk lines provided by the NEA.


Most recently, the NEA had given them a 21-day deadline and disconnected their power lines on October 21 and 22. The industries later submitted an application to the ERC after paying the first installment as determined by the NEA. According to the ERC, the case was heard by a bench comprising Chairperson Dr. Ram Prasad Dhital and four other members.


Representing the NEA, Rajkumar Pokharel, Ramesh Kumar Ghimire, and Tularam Giri argued the case, while Rojan Khadka represented the industries, the ERC said.


The ERC concluded that the NEA had determined the tariff in accordance with legal provisions. It further ruled that disconnecting the power line for failing to pay the tariff within the stipulated time is consistent with the law. If dissatisfied with the decision, the applicant industries may take the matter to court.


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