Industries Begin Paying Instalments in Dedicated Feeder and Trunk Line Tariff Dispute

Several industries with large outstanding dues have started paying instalments in the ongoing dispute over premium tariffs charged for power consumed through dedicated feeders and trunk lines.

The payments began after representatives from the industrial sector, including President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal, held discussions with Prime Minister Sushila Karki and senior government officials on Monday to seek a middle-ground solution to the issue.

On Thursday, Reliance Spinning Mills paid Rs 27.7 million to the Nepal Electricity Authority (NEA) as the first instalment of its dues. According to NEA, the total outstanding premium tariff owed by the company stands at Rs 753.7 million.

Following the payment, NEA reconnected the electricity supply to Reliance Spinning Mills, which had been cut off earlier due to non-payment, said NEA Executive Director Manoj Silwal. He added that power supply would be restored to other industries as they make their instalment payments.

Industries have started paying instalments against the premium tariffs claimed for electricity consumed round the clock from dedicated feeder and trunk lines between mid-January 2016 and mid-May 2018. NEA had been urging these industries to clear the dues, arguing that although they had paid regular tariffs for the period, they still owed the premium charges for uninterrupted supply.

The industries, however, maintain that they did not consume electricity as claimed by NEA and have demanded proof specifying the exact dates, duration, and amount of power used under the dedicated system.

After industries failed to pay by the NEA’s deadline of October 19, the state-owned power utility disconnected electricity to 25 industries. More than a dozen others had already begun paying their instalments earlier, according to NEA.

Apart from Reliance Spinning Mills, companies such as Hama Iron and Steel, Laxmi Steel, Sarbottam Cement, Hulas Steel, Panchakanya Steel, and Panchakanya Plastics have also made payments.

Industrialists had earlier demanded that NEA issue written certificates acknowledging the payments as security deposits rather than first installment and ensure their right to pursue legal remedies in the future. Despite these demands not being fully addressed, the industries began making payments.

Reliance Spinning Mills Director Shashikant Agrawal said the company decided to pay the instalment after Energy Minister Kulman Ghising assured that further discussions could be held after the first payment. “We have sent a letter to NEA stating that the payment has been made as a security deposit, and NEA has approved it,” he said. “So, we have paid the amount as a deposit, not as an  installment.”