Nepal Electricity Authority (NEA) Managing Director (MD) Kulman Ghising announced that electricity supply to industries whose connections were previously cut off will be restored immediately in accordance with government directives. At a press conference on Wednesday, Ghising emphasized that it is NEA’s duty to implement the government’s decisions, and as such, the disconnections will be reversed without delay.
“NEA, as an organization established under the Nepal Electricity Authority Act 2041 BS, is obligated to follow the government’s directives,” said Ghising. “We are currently in the process of reconnecting the power lines as per the government’s orders.”
The NEA had disconnected the power supply to 39 industries on October 24 due to unpaid bills for electricity supplied via dedicated and trunk lines. Ghising stated that the government has issued a directive to reconnect the lines temporarily, with the aim of collecting the outstanding dues within the next 15 days.
“We will work to collect the dues within this period and hope the industries comply with the government’s directive,” Ghising added.
In previous instances, the NEA had followed similar administrative directives to disconnect and reconnect lines, with this being the fourth such action. Ghising explained that 14 industries that had agreed to pay their dues in 28 installments had already had their power restored. However, for 39 other industries, seven have received court stay orders, and 28 have failed to pay any installments.
“If the dues are not paid within 15 days, or if the industries do not respond to the bills issued, we will resume our action,” Ghising warned. “The government has clearly stated that the dues must be collected within this timeframe. If not, the government and the Ministry of Energy will intervene to ensure payment.”
Ghising also stressed that the industries had been given a grace period of three months to clear the outstanding amounts, but if the situation isn’t resolved, it will become a matter of public concern. He further warned that repeated disconnections and reconnections cannot continue if industries fail to pay.
Addressing accusations that industrialists were politicizing the issue, Ghising noted, “Instead of paying the dues, some industrialists have tried to create controversies. Before the power was cut, they had enough time to produce goods. After 10-15 days of the cut, they resort to emotional blackmail, claiming unemployment and economic distress to pressure the government into reversing its decision.”
He asserted that not paying the dues would be unfair to the NEA, whose financial health depends on timely collections. “If the NEA’s financial position weakens, it will affect all sectors, including the industries themselves,” Ghising warned.
Despite multiple reminders, industries continued to claim they had not received evidence of the bills, which led to the disconnection of 34 industries on October 24. Of those, six industries have agreed to pay in installments. Following a Cabinet decision on October 25, the NEA has now reconnected the power supply to 28 of these industries.
Ghising stated that the bills issued for these industries are correct and based on accurate data from the TOD meters. The court and the Electricity Regulatory Commission have both confirmed the accuracy of the bills. “Ninety cases have already been dismissed, and the regulatory commission has stated that the lines will not be reconnected until at least one installment is paid,” Ghising noted.
He also clarified that the NEA will not revise the previously issued bills, as neither the court nor the regulatory commission has declared them incorrect.
The NEA’s financial situation has been adversely affected by the delayed payments from large customers, with revenue collection dropping from 95% to around 80-85%. Ghising emphasized that monthly revenue collection must exceed Rs. 11 billion to maintain NEA’s financial stability.
In response to the initial phase of load shedding in 2015, 237 industries were provided power through dedicated lines under premium charges. However, the tariff was not finalized until 2016, which led to a backlog of dues that the NEA is now seeking to recover.
Ghising concluded by emphasizing that industries must settle their outstanding dues to avoid further disruptions. “If the NEA fails to collect the dues, it will face severe financial difficulties, which could negatively impact not only the authority but also the entire energy sector.”
