In a controversial move backed by Prime Minister Pushpa Kamal Dahal, the state-owned Nepal Electricity Authority (NEA) has disconnected the power lines of various industries across the country. The Authority cites outstanding bills amounting to billions of rupees and is severing electricity connections to industries facing reduced manufacturing activities due to the economic downturn, jeopardizing thousands of jobs.

NEA has already cut the lines of nine industries in pursuit of disputed tariff spanning several years. Managing Director of the NEA, Kul Man Ghishing, said he took the decision following directives from various agencies including the Electricity Tariff Fixation Commission. He seems to have got the support of Prime Minister Dahal.

However, Finance Minister Dr. Prakash Sharan Mahat, a Cabinet member overseeing the country’s economy, has raised objections to the Authority’s policy. Dr. Mahat, who represents Nepali Congress party in the coalition, said that cutting power lines to industries during ‘challenging economic times’ was not justified.

The ongoing dispute reveals a lack of consensus among ministries indicating a broader challenge in coordinating economic policies.

The NEA has already disconnected lines for nine industries, including major players like Jagdamba Steel, Reliance Spinning Mills, Ghorahi Cement, and Arghakhanchi Cement. The NEA claims these industries owe significant sums as arrears.

In response, industrialists argue that the NEA has not provided sufficient evidence to support its billing claims, demanding transparency in the form of consumption data or Time of Day (ToD) meter records. The dispute threatens not only the affected industries but also the broader economic stability and employment landscape.

Pawan Golyan, founder of the Reliance Spinning Mill, highlighted that the NEA had previously instructed them to follow general household load-shedding schedules when provided with dedicated meters. Compliance with NEA directives was consistently maintained, aligning operations with national energy guidelines.

End of loadshedding

The government’s declaration of the end of nationwide load shedding in May 2018 brought relief to the industrial sector. However, ongoing disputes have arisen, prompting the formation of a committee in 2018 to address the matter. The committee, chaired by Bhakta Bahadur Pun, found no outstanding dues from Reliance Spinning Mills related to dedicated lines and suggested a two-year payment plan for electricity tariff.

Despite the committee’s recommendations, industrialists insist on obtaining consumption data or Time of Day meter records before making payments. Golyan argued that the NEA’s insistence on billing without providing such evidence is a one-sided perspective aimed at bolstering the Authority’s balance sheet.

Industrialists including Sahil Aggarwal of Jagdamba Steel and Bishnu Neupane of Sarbottam Cement, assert their willingness to pay based on transparent billing practices. The disagreement has led to economic repercussions, with the NEA’s actions resulting into rendering thousands of employees and workers ‘jobless.’. The ongoing standoff underscores the need for a fair and evidence-based resolution that considers the economic impact on industries and employment.

NEA Fails to Provide TOD Meter Data in Court

The Nepal Electricity Authority (NEA) has come under scrutiny as it failed to furnish Time of Day (TOD) meter data to the court in an ongoing case concerning the dispute over dedicated and trunk lines.

Kul Man Ghising, Managing Director of the Authority, is seeking an additional fee from 61 industries for the utilization of extra electricity through dedicated and trunk lines during the load shedding period. In response, some industrialists have taken legal action against the Authority, resulting in the NEA cutting off the lines of nine industries for non-payment of the additional fee.

In the legal proceedings initiated by the industrialists, the court has sought TOD meter data through various NEA offices. However, the relevant offices have informed the Court that they are unable to provide the TOD meter data as it has been deleted.

A case involving Shivam Cement against the NEA is currently pending in the Makwanpur District Court. The court had requested TOD meter data from the Authority on August 15, 2023.

In its response to the Makwanpur district court on September 4, NEA stated that it was unable to provide the requested data as TOD records couldn’t be maintained for an extended period.