A longstanding dispute over the electricity tariff for dedicated feeders and trunk lines has placed industrialists and the Nepal Electricity Authority (NEA) at odds. Industrialists are steadfast in their refusal to pay outstanding amounts, while the NEA threatens to cut power lines to the industries until payments are made.

On June 24, NEA sent a letter to 61 industries, demanding payment of arrears within 15 days. The deadline expired on Tuesday, and none of the industrialists paid within the deadline. Consequently, NEA began cutting power lines to the industries. On Tuesday, NEA cut the lines of Reliance Spinning Mills, Ghorahi Cement, and Arghakhanchi Cement. On Wednesday, it cut lines to Jagdamba Synthetic and Hulas Steel, followed by Jagdamba Steel on Thursday.

Shashikant Agarwal, owner of Reliance Spinning Mills, contested the NEA's demand, stating that the letter sent to industrialists did not specify the amount of electricity used or the basis for the charges.

"The authority has sent us a letter, not a bill. The amount to be paid should be clearly disclosed with details on electricity usage. However, the authority just sent a letter and arbitrarily asked for money. We cannot pay under these circumstances," he told New Business Age.

According to NEA, Ghorahi Cement owes Rs 406.8 million, Reliance Rs 602.9 million, and Arghakhanchi Cement Rs 358.8 million. Jagdamba Synthetics, whose line was cut in the second phase, owes Rs 160.4 million, and Hulas Steel owes Rs 112.9 million. Jagdamba Steel, which had its line cut on Thursday, owes Rs 1.28 billion. The NEA has billed the industrialists with an additional 25% penalty on these amounts.

NEA remains resolute in collecting the outstanding amounts and will continue cutting lines until payments are made. Manoj Silwal, Deputy Executive Director of NEA, stated that if the dues are not paid, the process of cutting lines will persist and intensify.

Silwal refuted the industrialists' claims of unclear billing, asserting that all bills were clearly detailed and sent in an excel sheet. He urged industrialists to focus on paying the outstanding amounts and resolving the dispute swiftly.

In response to the line cuts, industrialists have sought intervention from Prime Minister Pushpa Kamal Dahal and senior leaders of the newly formed government. A group of industrialists met with the Prime Minister and other leaders on Thursday to address the issue.

Last December, as the tax dispute escalated, the government formed a judicial inquiry committee led by former Supreme Court justice Girish Chandra Lal. The committee reported that industrialists should only pay fees from January 2072 to May 2075. According to NEA, industrialists owe about Rs 8.25 billion for that period, including Rs 6.658 billion in additional taxes and a 25% fine.

The industrialists insist that while they are willing to make payments, the NEA must provide clear evidence of electricity consumption.