The Electricity Regulatory Commission has instructed the Nepal Electricity Authority (NEA) not to disconnect electricity supply to industries. On Tuesday, the Commission sent a four-point letter directing the NEA to cut power lines only for industries that fail to pay their dues. The letter follows a Cabinet decision made on November 25 to calculate and collect arrears, including charges based on Time-of-Day (TOD) meters, within 15 days.

Subsequently, on October 27, the NEA’s board of directors issued a notice requiring payment of arrears by November 12. The deadline for industries to settle arrears related to dedicated feeder and trunk lines ends on Wednesday.

In its letter, the Commission instructed the NEA to continue the recovery process while also calculating dues based on the TOD meter system. On November 2, the Ministry of Energy formed a committee under the coordination of Arvind Kumar Mishra to study the pricing and technical aspects of TOD meters. The Commission also directed the NEA to refrain from taking further action until the committee submits its report to the government.

Disputed consumers are continuing to pay their regular monthly electricity tariffs. Since the matter of dedicated feeder and trunk line tariffs is under government investigation, it is deemed unjust to subject consumers to punitive actions before the investigation concludes. The Commission’s letter specifies that no further actions should be taken until the committee’s report is submitted and the government establishes the facts or provides further instructions.

Commission Chairman Ram Prasad Dhital stated that actions would remain on hold pending the committee’s report. “The investigation committee formed by the ministerial decision has already begun its work, so we must wait for their findings before proceeding further,” he said.

The Ministry of Energy spokesperson Chiranjeevi Chatout confirmed that the committee began work on Sunday. “The committee has requested and received details from the NEA,” he said. The letter emphasized that recovery efforts in accordance with prevailing laws would continue, but coercive actions, such as disconnecting power to industries, have been paused to allow for arrears to be reconciled.

If any consumer opts to pay outstanding amounts, the Commission instructed the NEA to reconcile the accounts as per the Cabinet decision of November 25 and collect the amounts determined by the investigation.

NEA Managing Director Kulman Ghising mentioned that the regulatory commission’s letter had been received, but the NEA’s board of directors had not yet made a decision. “We received the commission’s letter, but the board will decide how to proceed. A board meeting is scheduled for Wednesday,” he said.

The NEA last disconnected electricity for 40 industries on October 8. However, power for two government-owned and seven other industries with interim court orders remained intact. According to the NEA, 12 of the 40 industries have started paying their arrears in installments. Following protests from the private sector over the unilateral disconnection of power, the Cabinet meeting on October 25 decided to calculate tariffs based on the TOD meter system and required the NEA to reconnect power within 24 hours. Based on this decision, the NEA’s board resolved on November 27 to restore electricity supply.

In the case of dedicated feeders, a 24-hour continuous power supply is required, while trunk lines must provide at least 20 hours of uninterrupted power, even during six-hour load-shedding periods. A commission led by former judge Girish Chandra Lal recommended recalculating charges based on the duration and days of electricity supplied under the norms at that time and collecting adjusted fees.

The NEA claims that arrears for the period between January 2016 and April 2018 total NPR 6.6 billion. With an additional 25% fee for delayed payment, the arrears amount rises to NPR 8.25 billion.

The recently formed Mixed Coordination Committee, based on the report by the Girish Chandra Lal-led commission, has been tasked with determining the outstanding charges for customers who consumed electricity through dedicated and trunk lines, including TOD meters, during the specified period. The committee is responsible for collecting and verifying details and evidence related to these charges.

Source: Kantipur