The Nepal Electricity Authority (NEA) has begun cutting the power lines of industries that consumed electricity through dedicated and trunk lines during the load-shedding period in the past but failed to pay premium charges.

During the past load-shedding period, some industries consumed electricity through dedicated and trunk lines without paying the premium charges. The authority has now started cutting the power lines of such industries.

On Tuesday morning, the Nepal Electricity Authority disconnected the power lines of Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement Industries, and Triveni Spinning Mills. The outstanding dues are as follows:

- Jagadamba: NPR 1.60 billion

- Reliance: NPR 753.7 million

- Shivam: NPR 778.8 million

- Ghorahi: NPR 508.5 million

- Arghakhanchi: NPR 448.4 million

- Triveni: NPR 321 million

These dues are for additional charges related to the use of dedicated and trunk lines during the period from Magh 2072 to Baisakh 2075 (approx. January 2016 to April 2018).

Manoj Silwal, the Managing Director of the Nepal Electricity Authority, stated that arrangements have been made for industries to pay their dues even during the public holidays of Tihar. He mentioned that if the first installment is paid under an installment plan, the disconnected lines can be reconnected at any time.

The outstanding dues are for additional charges incurred from using dedicated and trunk lines between Magh 2072 and Baisakh 2075 (January 2016 - May 2018).

Managing Director of the Nepal Electricity Authority (NEA), Manoj Silwal, stated that despite repeated calls for payment, the industrialists ignored them, forcing the Authority to begin cutting power lines.

According to Silwal, six industries alone owe over NPR 4 billion in unpaid electricity dues. He stated that their power lines would not be reconnected until they begin to pay the dues.

Silwal said,“We have disconnected the power supply to Jagdamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement Industries, and Triveni Spinning Mills. These industries alone owe about NPR 4 billion. Despite repeated written notices, they ignored them, so we were compelled to disconnect their supply. Until they start paying, the lines won’t be reconnected.”

According to him, even during the public holiday of Tihar, NEA has arranged for counters where the industries can make payments. The Authority is not insisting that the entire amount be paid at once - a 28-installment plan has been offered. Silwal added that if the first installment is paid, the disconnected power supply will be restored immediately.

Earlier, NEA had issued a 21-day notice warning that it would cut the electricity supply to industries that failed to pay their dues. Since the notice was issued on 12 Ashoj (September 28, 2025), two more industries have agreed to pay in installments. However, most others have maintained that they will not pay until the dispute is resolved.

Previously defaulting companies Ashok Steels and Hama Steels have started making payments in installments. Hulas Steel, Laxmi Steels, and Sarbottam Cement, which had already started installment payments earlier, have also continued with new installments, NEA reported.

There has long been a conflict between NEA and industrialists over these electricity dues. Even now, some industries are refusing to pay.

In a press statement issued by the group "Pidit tatha pratadit udhyog samuh (Nepal)" (Victimized and Harassed Industry Group - Nepal), it said:

“We appeal to every Nepali citizen and to the youth (Gen-Z) who have recently taken to the streets for good governance. This is a fight against institutional arbitrariness and baseless authority, which poses a threat to the economic future of every Nepali.”

The industrialists have claimed that there are serious flaws in NEA’s evidence and billing system.

The statement reads: “This is not just a dispute involving one or two companies - it is a shared issue affecting more than 30 major industries. The fact that no industry has acknowledged using premium services of dedicated lines for more than seven years proves serious flaws in NEA’s billing system and the evidence it relies on.”

The industries have demanded evidence, stating:“Our demand is transparent and fair. We have consistently requested that any liability should be determined only based on the report of the Red Commission formed by NEA and data from TOD meters (which show actual electricity usage during load-shedding). How can we be expected to pay when NEA has no proof that we used the service?”

The industrialists have described NEA’s actions as arbitrary and authoritarian, stating that the Authority has disregarded legal procedures.

They claim that after asking industries to submit applications for administrative review and even requiring a 5% bank guarantee of the total disputed amount, the NEA board unilaterally canceled the entire review process. This, they say, is an example of institutional injustice and a blatant disregard for the rule of law.

The affected industrialists have warned that NEA's actions will cause national-level harm:

“Threatening to cut off electricity is not a legitimate debt recovery strategy. It is a suicidal move that will severely damage the national economy,” the statement said.

According to the industries involved in the dispute, they collectively provide direct employment to more than 15,000 people.

If power is cut, these industries will shut down, leaving thousands of Nepali families jobless, which, amid the current economic downturn, will become a major social crisis.