Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Electricity Authority (NEA) has disconnected power lines to 18 more industries using “Dedicated” and “Trunkline” electricity connections after they failed to clear their outstanding dues that have now crossed Rs 8 billion.
According to NEA spokesperson Rajan Dhakal, the authority cut off power to Panchakanya Steel, Shyam Plastic, Goyanka Foods, Cosmos Cement, SR Steel, Panchakanya Plastic, Bhairahawa Automatic Factory, Jagdamba Synthetic, Everest Rolling Industries, Gharana Foods, Bishal Cement, Butwal Cement, Nigale Cement, SR Foods, Siddhartha PET Plant, Himal Iron, Triveni Synthetic Yarn, and Sona Minerals & Oils from Friday night.
Earlier, the NEA had disconnected electricity supply to Jagdamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills over similar non-payment issues.
Spokesperson Dhakal said that while some industries have started paying in installments, others have taken the matter to court. “Out of the total industries using dedicated feeder and trunkline connections, 14 have started installment payments while six have obtained interim orders from the court. Hetauda Cement and Udayapur Cement also have outstanding dues,” he added.
The issue of collecting dues from dedicated and trunkline users has remained unresolved since 2018 (2075 BS). The first study on the matter was conducted under the coordination of then NEA board member Bhakta Bahadur Pun, and since then, the authority has been continuously attempting to recover the dues.
Industrialists, however, have long maintained that they should not be liable to pay these charges, arguing that they never used dedicated or trunkline services. The dispute has reached the court, the Public Accounts Committee of the Federal Parliament, and even the Commission for the Investigation of Abuse of Authority (CIAA).
On September 28 (Ashoj 12), NEA had publicly issued a 21-day notice instructing the industries to clear their dues, offering an installment payment facility. However, after the deadline expired without payment, the authority proceeded to disconnect the electricity lines under Electricity Revenue Collection Regulations, 2078.
The NEA’s move reflects a tougher enforcement stance toward industries failing to comply with payment obligations amid mounting revenue pressure. The ongoing conflict between the authority and industrialists has also highlighted governance and regulatory challenges in Nepal’s energy sector — a key area for sustainable industrial growth and investment confidence.
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