Commission Upholds NEA’s Power Cut Over Unpaid Dedicated-Line Tariffs

The Nepal Electricity Regulatory Commission (NERC) has upheld the Nepal Electricity Authority’s (NEA) decision to recover outstanding electricity tariffs related to dedicated and trunk line power supply, the state-run national news agency RSS reported on Monday.

Responding to complaints filed by two industries, NERC reportedly refused to issue an interim order and supported NEA’s move to collect the dues. The complaints were lodged by Panchakanya Plastic Industries Pvt Ltd and Panchakanya Steel, which have long resisted paying tariffs for electricity supplied through dedicated feeders and trunk lines during the time of load shedding.

NEA had disconnected power to the industries on October 21 and 24 after issuing a 21-day ultimatum for payment. Citing legal provisions that allow action against consumers who fail to clear dues within the stipulated timeframe, NERC endorsed NEA’s decision to cut electricity supply, RSS further reported.

The Commission noted that the industries may pursue legal remedies in court if they are dissatisfied with the decision.

The NEA had earlier facilitated the industries to clear their dues in 28 installments, but instead of settling the payments, many manufacturers reportedly lobbied the then KP Sharma Oli–led government to remove Kulman Ghising from his position as the then NEA Executive Director.

However, after the NEA resorted to power cuts, thirty-five industries that consumed electricity through dedicated feeders and trunk lines during the load-shedding period have begun clearing their long-pending tariff dues, according to the Secretariat of the Minister for Energy, Water Resources and Irrigation.