Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Office of the Prime Minister and Council of Ministers has directed the Ministry of Energy, Water Resources and Irrigation to implement the agreement reached between the government and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) regarding the long-running dispute over charges for ‘dedicated’ and ‘trunk’ electricity lines used by industrial firms.
According to the PM’s Office, a meeting held on 17 Kartik 2082 in the presence of Prime Minister Sushila Karki, Finance Minister Rameshwar Khanal, Energy Minister Kulman Ghising, Chief Secretary, and the FNCCI delegation had reached a verbal understanding to simplify payment procedures and allow an administrative review mechanism for disputed billing.
As per the agreement, industries that had their dedicated electricity lines cut by the Nepal Electricity Authority (NEA) over unpaid premium charges would be able to restore their power supply immediately after depositing the amount equivalent to one installment from the previously issued 28-installment schedule as a deposit, rather than as confirmed payment. This provision allows the disputed amount to remain under review while power supply is resumed.
FNCCI President Chandra Prasad Dhakal confirmed that industries depositing the required amount will retain the right to seek administrative review and pursue further legal remedies. “Industries can submit their deposit along with written objections and request for review. The agreement ensures continuity of industrial operation while the billing dispute undergoes due process,” Dhakal stated.
The dispute surfaced after NEA accused around two dozen industries of failing to pay additional premium charges for dedicated and trunk line usage. NEA subsequently disconnected the power supply of several units, prompting protests from industrial bodies who claimed the billing system was opaque and incorrectly applied.
Following the agreement, power connections have been restored to industries that have submitted the deposit amount.
With the Prime Minister’s Office now instructing formal implementation, the Ministry of Energy and NEA are expected to begin processing the deposit-based reconnection and review applications immediately. Business associations say this directive is a positive step toward preventing production shutdowns, unemployment risks, and supply chain disruptions in the industrial sector.
However, industrial leaders stress that structural clarity is still needed to prevent similar disputes in the future. They have urged the government and NEA to adopt transparent tariff mechanisms and ensure that dedicated line services are billed based on clear standards, not interpretations.
The PM’s Office has stated that the purpose of the directive is to ensure that “issues affecting national industrial production and business stability are resolved through dialogue, cooperation, and due legal process.”
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