Industrialists allowed to pay the due amount in 56 installments with 5% security deposit

The Nepal Electricity Authority (NEA) has decided to collect the disputed arrears for dedicated and trunk lines in 56 installments. Additionally, the NEA’s Board of Directors (BoD) has decided to reconnect the currently disconnected electricity after the first installment is paid.

"Arrears for dedicated and trunk lines will be accounted for separately, each industry's arrears will be divided into 56 installments and the line will be reconnected immediately after the first installment is paid," said Energy Secretary Suresh Acharya, who is also a member of the NEA’s Board.

Acharya also informed that if, in the future, the authorized body decides that the disputed amount is not payable, the amounts already paid will be adjusted in subsequent bills.

The Electricity Regulatory Commission issued a directive requiring that the payment for dedicated and trunk line electricity charges be made in installments as determined by the NEA. Following this directive, the NEA board made its decision. The NEA is obligated to comply with the Commission's instructions.

"The Government of Nepal (Cabinet), in its decision on May 9, 2024, specified that disputed arrears for dedicated feeder and trunk line electricity charges from February 2016 to May 2018 be collected and settled periodically from the concerned consumers. The NEA shall set an appropriate amount to be collected.

Even if the line was previously disconnected due to unpaid charges, the directive states that the electricity line should be reconnected immediately once the consumer pays the installment amount,” the Commission instructed on Wednesday.

Similarly, if there is any verification or adjustment regarding the amount of electricity charges or any other aspect by an official body in the future, the Commission has directed that any amount already collected should be adjusted in subsequent bills. Based on this directive from the Commission, Secretary Acharya stated that the NEA Board has provided the option to pay the arrears in 56 installments.

Decision to Reduce the security deposit

During the administrative review of the NEA, the Board meeting decided to change the requirement to hold 25 percent of the disputed amount as a security deposit, reducing it to only 5 percent. Additionally, the Board has also decided to allow bank guarantees to be accepted as security instead of requiring cash deposits. Secretary Acharya provided this information.

The Board has also decided to activate the review committee within the NEA.

However, the industrialists have stated that they will respect the Board's decision but will not accept it. They argue that since the judicial inquiry commission has already indicated that the bills issued by the NEA are incorrect, it is inappropriate for the NEA Managing Director Kulman Ghising to prepare for the collection of dues based on the old bills.