#NEA-Govt Row Over Outstanding Tariff Dues
Published On: July 22, 2024 07:30 AM NPT By: Republica | @RepublicaNepal
In a disturbing turn of events, the Nepal Electricity Authority (NEA) finds itself under undue pressure from both the government and influential industrialists to restore power to industries that have failed to pay their substantial dues. This unwarranted interference not only undermines the principles of good governance and the rule of law but also sets a dangerous precedent for the future. The expectation that industries should settle their dues for dedicated and trunk lines is fundamental to maintaining a fair and functional power distribution system. Any attempt to evade these responsibilities is unacceptable and must be condemned. The letter from the Electricity Regulatory Commission (ERC) pressurizing the NEA to reconnect the electricity lines of six manufacturers is a stark example of how industrialists, through the government, are attempting to exert their influence. This comes after the NEA defied verbal instructions from Prime Minister KP Sharma Oli to restore the power supply to the same industries. Such maneuvers make a mockery of regulatory independence and highlight a disturbing trend of using government power to serve private interests.
The NEA, an autonomous power utility, had made a principled decision to cut off the electricity supply to industries that have accumulated large dues. This decision, backed by a board meeting that included high-ranking officials such as the Energy Minister and Secretaries from the Ministry of Energy and the Revenue Department, was made in the interest of financial discipline and fairness. However, the government's subsequent attempts to overturn this decision through regulatory pressure undermine the credibility of these institutions and the rule of law. The long-standing dispute over the tariffs for dedicated feeders and trunk lines used by industrialists during periods of load shedding further complicates the issue. These services, which provided high-voltage lines directly from substations to factories, were critical during times of power scarcity. The NEA's decision in 2015 to impose additional fees on these high-consuming industries was a necessary measure to ensure the equitable distribution of electricity and financial sustainability. However, industrialists have persistently resisted these charges, seeking waivers and concessions at every turn.
The formation of a committee by the government to resolve this dispute, which eventually recommended waiving premium charges for certain periods, was a step towards addressing industrialists' concerns. However, the NEA's recent actions to enforce payment of dues reflect a legitimate and necessary attempt to uphold financial accountability. The Rs 6.60 billion owed by 61 manufacturing companies is a significant sum that cannot be overlooked. Allowing industries to evade these payments not only drains state resources but also sets a dangerous precedent that others may seek to exploit. It is imperative that the government supports the NEA's efforts to collect these dues rather than succumbing to pressure from powerful industrialists. The NEA's warning to cut electricity lines of the remaining companies if they fail to pay is a necessary measure to ensure compliance and uphold the principles of fairness and accountability. The pressure from the government and the ERC to reconnect power lines without payment undermines these principles and sends the wrong message. We urge the government and regulatory bodies to support, not undermine, the NEA in its efforts to enforce financial discipline. It is time to put an end to the practice of using government power to serve private interests and ensure that the rule of law prevails in all sectors.
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