KATHMANDU, Sept 13: In the ongoing dispute over Dedicated and Trunk Line charges, the Nepal Electricity Authority (NEA) has once again issued a notice to the industries concerned, demanding the settlement of arrears. Following Prime Minister KP Sharma Oli’s directive to resume power supply to industries whose connections were cut off, the NEA, which resumed power supply on July 24, has started sending notices asking the industries to settle their arrears by October 24. 

The NEA claims that the outstanding dues amount to approximately Rs 6.5 billion. The dispute, which has stalled in the Public Accounts Committee of parliament and has not been officially resolved, seems to be further complicated by the NEA’s latest notice. The issue of the dedicated and trunk lines has led to continuous disputes between the ruling parties and the opposition.

The NEA issued a reminder through distribution centers on Wednesday, urging industries to settle their outstanding dues for dedicated and trunk line services by October 24.

Although the NEA had previously sent a notice on June 10, demanding payment from 61 industries within 15 days, the industries did not comply. As a result, the NEA cut power lines to industries such as Arghakhanchi Cement, Jagdamba Cement, Reliance Spinning Mills, Jagdamba Synthetic, Hulas Steel, and Ghorahi Cement from July 10 to 12, which led to increased tensions. The NEA reports that nearly Rs 6.7 billion remains unpaid.

Following Prime Minister KP Sharma Oli’s directive to resume power supply, the NEA board reconnected the power supply to those industries on July 23. The board agreed with NEEA Managing Director Kulman Ghising to restore power with a three-month deadline to collect the outstanding dues.

Despite government efforts to resolve the dedicated and trunk line dispute over the past nine years through various commissions, no final resolution has been reached. According to the Lal Commission’s report, which was formed by the government, industries are willing to pay the electricity charges, but they claim that the NEA disconnected the power unjustly.

The commission directed that, according to the Consumer Protection Directive 2080, specifically Section 13, Subsection 10, which states that electricity supply should not be disconnected before resolving complaints, the power supply should be restored.

Since 2018, there has been an ongoing dispute between the NEA and industries over the payment of electricity tariffs for services provided through dedicated feeders and trunk lines. The Authority has repeatedly cut and restored power supply to the industries in question.

To resolve the dedicated and trunk line dispute, the government formed a commission. Industries have been requesting the implementation of the recommendations made by the judicial commission led by former Supreme Court Justice Girish Chandra Lal, which was established to study the dispute.

The Lal Commission recommended that no additional charges be paid from July 2015 to December 2018 and from April 2018 onwards. For dedicated feeders, the commission recommended collecting charges based on legal proof from January 2016, and for trunk lines, from July 1, 2016.

The Cabinet had directed the NEA to collect fees according to the commission’s recommendations. Industries have been requesting the NEA to provide evidence of their electricity usage.

 
• Dedicated_and_Trunk_Line_charges
 
• NEA
 
• industries
 
• settlement
 
• arrears