NEA disconnects electricity supply lines of five manufacturers for non-payment of electricity bills

KATHMANDU, July 15: The debate between Nepal Electricity Authority (NEA) and industrialists on pending bills of dedicated feeder could not reach a conclusion, with both sides sticking to their standpoints.

Once again, the issue has come to the limelight after the NEA stepped up efforts to disconnect electricity supply lines to those industrialists who have been denying paying the outstanding dues. Few days ago, the NEA cut the electricity supply lines of five production plants including Arghakhachi Cement, Reliance Spinning Mills, Gorahi Cement, Jagadamba Synthetic and Hulas Steel.

A total of 61 manufacturing companies are left to pay cumulative dues of Rs 6.60 billion. According to the NEA official, the power utility will cut the electricity lines of remaining 56 companies successively if they do not show intention to pay the amounts on their part.  

Citing power outage issues, the NEA, in 2015, enforced the rule to impose additional fees on industries that consume lots of energy through the dedicated feeder and trunk lines during the period of load shedding. The NEA had charged 65 percent as premium charge for the users of dedicated feeders and trunk lines on top of the normal tariff.

Under the dedicated feeder service, a factory that needed high voltage lines was permitted to receive direct electricity from a nearby substation, while those using trunk lines were provided with regular electricity directly through two substations. 

Manufacturers, however, have been denying paying the dues on the dedicated feeders and trunk lines. They have blamed the NEA for slapping the premium charge of period even after the load shedding was declared officially over.  

Citing to solve the entangled issue, the government on January 9 formed a committee under the leadership of former Supreme Court Justice Girish Chandra Lal with joint secretaries of the Ministry of Energy, Water Resources and Irrigation (MoEWRI) and the Ministry of Industry, Commerce and Supplies (MoICS) as members.

The committee has suggested the state-owned power utility take premium charges of electricity used during the period of February 2016 to April 2018. However, it has recommended charging a special fee based on the consumption amount recorded by the Time of the Day (TOD) meter. 

In the latest development, the state-owned power utility on June 23 issued a notice giving the companies a deadline of 15 days to clear their dues. However, the industrialists did not turn up to pay the amounts within the stipulated timeline that ended last Monday.    

The NEA has been refusing to implement the recommendation of the government formed committee. After the NEA sent the excel sheet record of the electricity use, the manufacturers have come up with other excuses for not paying the due amounts. According to a manufacturer, they have now started looking at the newly formed government for a soft corner.

Meanwhile, the NEA’s board meeting held on Thursday decided to facilitate the industrialists to clear their outstanding dues on dedicated feeders in 28-month installments. According to the NEA, the flexibility it has adopted will relieve these companies to settle the payments at a time of ongoing business slowdown.

 
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