Electricity Dues Dispute Escalates: FNCCI Calls for High-Powered Commission

Tensions rise as the Nepal Electricity Authority (NEA) disconnects power supply to nine manufacturers amidst an ongoing dispute over dues on dedicated and trunk lines. The NEA claims that 61 manufacturers owe over Rs 27 billion in electricity dues, dating back eight years.

The private sector has been resisting payment, demanding proof of electricity usage under special facilities. Despite a temporary hold on power disconnections earlier, the NEA recently resumed harsh actions, citing a directive from Prime Minister Pushpa Kamal Dahal to cut off electricity to defaulting firms.

Among the affected companies are Jagdamba Steel, Reliance Spinning Mills, Ghorahi Cement, and Arghakhanchi Cement. The NEA asserts that these companies owe substantial amounts, with Jagdamba Steel accounting for Rs 4.14 billion, Ghorahi Cement Rs 1.36 billion, Reliance Spinning Mills Rs 1.14 billion, and Arghakhanchi Cement Rs 1.30 billion.

On Sunday, power lines to Sarbottam Cement, Laxmi Steel, Ashok Steel, Sonapur Minerals and Oil Pvt Ltd, and Triveni Spinning Mills were also cut off. Sarbottam Cement owes Rs 689 million, Laxmi Steel Rs 741 million, Ashok Steel Rs 745 million, Sonapur Minerals and Oil Pvt Ltd Rs 612 million, and Triveni Spinning Mills Rs 869 million.

Prime Minister Dahal's recent directive to recover Rs 20 billion in arrears from users of dedicated and trunk lines has intensified the conflict. Industrialists express dissatisfaction, claiming the Prime Minister contradicts his previous promise to avoid power disconnections.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has called for the formation of a high-powered commission to investigate the dispute. The FNCCI demands a thorough study, encompassing the period from 2015 to the present, including Time of Day (ToD) metering data.

Former FNCCI president Pashupati Murarka states their willingness to clear dues if the NEA provides evidence of excessive electricity consumption during load shedding. The FNCCI urges the government not to disrupt power supply to production businesses until the payment issue is resolved.

The Confederation of Nepalese Industries (CNI) echoes similar sentiments, expressing readiness to pay dues based on ToD meter records. CNI President Rajesh Agrawal insists on clear readings of ToD meters and rejects premium amounts added post-load shedding, emphasizing the need for a solution benefiting both the private sector and the NEA.

Economists warn that the current stalemate could harm the economy, affecting production businesses amid a recession. They call for a win-win solution that addresses the concerns of both the private sector and the NEA.