“Why Pay Without Proof?” Industries Challenge NEA’s Tariff Demand

A dispute between the Nepal Electricity Authority (NEA) and major industrial groups has intensified after the power utility cut electricity supply to six companies for failing to pay contested charges for using “dedicated feeders” and “trunk lines.”

NEA spokesperson Rajan Dhakal confirmed to the state-owned RSS news agency that power supply to Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills was cut off on Sunday morning. He said the action followed repeated notices and a 21-day deadline issued on September 28, in line with the Electricity Tariff Collection Regulations, 2078.

The dispute over the special line tariff has remained unresolved since 2018. A study led by then NEA board member Bhakta Bahadur Pun had first assessed arrears and submitted its report to the authority’s board in May 2018. Since then, the issue has reached the courts, the Public Accounts Committee, and the Commission for the Investigation of Abuse of Authority (CIAA), without a final resolution.

Industrialists Call Move Arbitrary and Economically Harmful

In response, a collective of leading industrialists — operating under the Group of Affected and Aggrieved Industries — has rejected the NEA’s decision as arbitrary and without legal or evidential basis.

They said their refusal to pay was “not to evade legitimate dues but to defend the rule of law and economic stability.” The group called the NEA’s disconnection move “an act of institutional overreach that threatens Nepal’s industrial base.”

“Why pay without proof?” the statement read, arguing that NEA has failed to produce credible billing records showing that industries actually used premium dedicated lines. The group said the issue affects more than 30 major companies and stems from “seven years of unresolved institutional lapses.”

The industrialists reiterated that payment obligations should be determined transparently, based on the Lal Commission report and Time of Day (T.O.D.) meter data that can confirm whether industries consumed power during load-shedding hours.

Jobs and Revenue at Risk

The group warned that the power cuts could endanger over 15,000 jobs and disrupt more than Rs 1 billion in monthly electricity payments that industries contribute to NEA. “Shutting down factories during an economic slowdown is an act of economic self-destruction,” the statement said.

They cited an earlier incident in which a 22-day disconnection of 23 industries caused losses exceeding Rs 12 billion to the private sector and over Rs 3 billion in state revenue — a four-to-one damage ratio against the state.

Call for Evidence-Based Governance

The industrialists also pointed to inconsistencies in NEA’s claims. While the authority initially sought to recover over Rs 20 billion, the Lal Commission later recommended collecting only about Rs 6 billion — a discrepancy they said exposes arbitrary billing.

They have urged NEA and the government to:

Base billing solely on verified T.O.D. meter data.

Withdraw coercive measures and power cut threats.

Honour administrative and legal procedures.

“We are not against payment; we are against paying without proof,” the group said. “Until evidence-based justice is ensured, our stand will remain firm to protect the national economy and safeguard the livelihoods of thousands of Nepalis.”

(With inputs from RSS)