NEA Sets 35-Day Deadline for Defaulting Industries to Clear Electricity Arrears

The Nepal Electricity Authority (NEA) has set a 35-day deadline for industries to clear outstanding electricity bills for power consumed through dedicated feeders and trunk lines, a move that has drawn criticism from private-sector representatives.

The NEA Board of Directors meeting on Friday, chaired by Energy Minister and former NEA Executive Director Kulman Ghising, took a decision to this effect. Under the new plan, industries with arrears will be allowed to pay in up to 28 installments, with the first installment due by November 3. The NEA plans to issue a public notice regarding the payment schedule.

According to NEA Executive Director Manoj Silwal, the arrears in question date from mid-January 2016 to mid-February 2018, as recommended by a commission led by former Supreme Court Justice Girish Chandra Lal. The commission had advised that arrears prior to mid-January 2016 and after mid-April 2018 need not be collected. Currently, 49 industrial units owe around Rs 8 billion in unpaid bills.

A review committee, formed during former Energy Minister Deepak Khadka’s tenure and chaired by NEA board member Shyam Kishor Yadav, had earlier allowed industries to submit 5 percent of their outstanding bills as a security deposit to request review of the dues. Forty-six industries had complied, but the NEA board decided on Friday to bypass further review and demand full arrears within the 35-day period.

Silwal said the review committee had concluded that additional reconsideration was not legally justified, citing Supreme Court and commission directives that the arrears must be collected. “Despite repeated notices, industries have not paid their dues. Taking the matter back to review would be against the law,” he added.

The NEA’s move has sparked criticism from some industrialists, who described it as a blow to the private sector. Speaking on condition of anonymity, one industrialist said, “The private sector was targeted even during the Gen-Z protests. Now the state itself is taking actions that put industries under pressure.”

The Federation of Nepalese Chambers of Commerce and Industry estimated that private enterprises suffered over Rs 80 billion in damages during the protests.

The industrialist also expressed concern that repeated attempts to collect arrears without proper legal process could undermine investment confidence and hamper employment generation.

“We submitted the 5 percent security deposit as required by the court to request a review. But the NEA moving ahead before completing the legal process sends a message that the government is not industry- or business-friendly,” said the industrialist.