Nepal Electricity Authority (NEA) has disconnected the power supply of Jagadamba Steel located in Siraha. The NEA disconnected the power supply at 9 PM last night after the company failed to pay the outstanding dues for receiving electricity supply through dedicated lines and the fines for that.

According to the NEA, Jagadamba Steel has not paid Rs 1.6 billion including 25 percent fines for late payment for receiving electricity supply through dedicated lines. With this, the number of industrial units whose power supply has been disconnected by the NEA has reached six.

Earlier on July 9, the NEA disconnected the power lines of Reliance Spinning Mills, Arghakhanchi Cement, Ghorahi Cement and other industries.

According to the NEA, the power lines of the industries that have not paid the premium fees during the period of load-shedding from mid-January to mid-February 2016 to 2018 have been disconnected.

Industrialists have been protesting against the NEA for disconnecting power supply. Claiming that the NEA has started harassing and threatening them, the industrialists have warned that if the NEA does not connect the power lines, they will disconnect the power supply to all the industries in the country by themselves and shut down the industries.

The industries were able to consume electric power through dedicated and trunk lines, for which premium fees were charged. Even though the industries paid regular fees, the premium charges have not been paid. While the NEA went ahead with disconnecting the electricity supply after its repeated calls on the industries to pay the dues were ignored, the industrialists have been protesting against this.

Based on the recommendations of the High-Level Probe Commission, the Cabinet meeting decided to charge additional fees for the use of dedicated and trunk lines during the disputed period (from mid-February 2016 – mid-May 2018) since load shedding was in effect during that time and the electricity tariff for that period had already been determined by the then Electricity Regulatory Commission.

The NEA’s 973rd Board of Directors meeting held on June 18, decided to grant a deadline of 15 days to the industries to pay the outstanding dues along with 25 percent fines for consuming electricity through dedicated and trunk lines from mid-January to mid-February 2016 to mid-May 2018.