Industries Seek PM’s Intervention as NEA Moves to Disconnect Power Over Tariff Dues

Hulas Steel Industries and Ashok Steel have begun clearing their long-pending dues with the Nepal Electricity Authority (NEA) for electricity consumed through dedicated feeders and trunk lines during the country’s peak load-shedding era.

According to the NEA, Hulas Steel has received approval to settle a total premium of Rs 141.2 million, covering the period from mid-January 2016 to mid-May 2018, in 28 monthly instalments of Rs 5.043 million each. The company made its first payment on Friday, October 17, NEA Managing Director Manoj Silwal confirmed.

Similarly, Ashok Steel, which owes Rs 175.8 million to the NEA, also paid its first instalment of Rs 6.3 million under the same 28-installment scheme.

The NEA had earlier introduced the instalment facility to help industries gradually clear dues accrued during the years of severe power rationing, when dedicated and trunk line consumers were charged premium tariffs to access uninterrupted electricity.

Meanwhile, 26 industrialists have appealed to Prime Minister Sushila Karki for intervention in what they describe as an “unfair billing practice” by the NEA regarding dedicated feeders and trunk line charges.

The signatories include Triveni Synthetic Yarn Industries Pvt. Ltd., Jagdamba Steel Ltd., Jagdamba Synthetic Pvt. Ltd., Nigale Cement Pvt. Ltd., Sonapur Minerals and Oil Ltd., Triveni Spinning Mills Ltd., and Ghorahi Cement Industries Ltd., among others.

The NEA Board has decided to cut power supply to industries that fail to clear disputed dues by Sunday, October 19.

The industrialists said they are willing to pay outstanding amounts verified through proper evidence, as recommended by the Lal Commission.

The Commission was formed as per the cabinet's decision on January 9, 2024 to resolve the tariff dispute. Its report was published in November, 2024.

However, industrialists accused the NEA of attempting to collect payments at special rates without substantiation.

According to the letter, the Lal Commission’s report had advised that industries be billed only for power consumption recorded by Time-of-Day (TOD) meters. The group also said their formal petition seeking a review of NEA’s decision to impose additional fees was abruptly cancelled without due consideration.