The longstanding dispute between the Nepal Electricity Authority (NEA) and defaulting industries over unpaid dues for the use of dedicated feeders and trunk lines appears close to resolution. This follows an agreement between the government and industrialists on a proposal put forward by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
During a meeting with Prime Minister Sushila Karki on Monday, FNCCI representatives proposed that industries would pay the first installment of their outstanding dues as a security deposit—on the condition that NEA reconnects electricity supply to the affected manufacturing plants. Speaking at a press conference on Tuesday, industrialists expressed their support for the federation’s compromise plan.
Raghu Nandan Maru, president of the Nepal Cement Manufacturers’ Association, said the sector views the proposal positively. “We are ready to pay the first installment of our dues, but only as a security deposit to the NEA,” he stated.
Under the FNCCI proposal, the initial payment—one of 28 installments—would be treated as a deposit rather than a formal settlement. Manufacturers have also demanded that NEA restore electricity supply to their factories once the first installment is paid.
FNCCI President Chandra Prasad Dhakal said consensus had been reached after extensive discussions with senior government officials. “An understanding has been reached between the private sector and government agencies to resolve the issue,” he noted.
Dhakal added that the private sector has urged the government to form a judicial commission to permanently settle the matter. “Such a commission is essential to address broader economic challenges, including declining employment and disruptions in production and exports,” he said.
The dispute traces back to August 2015, when NEA introduced a premium tariff for industries consuming electricity through dedicated feeders and trunk lines. At the time of severe load-shedding, these industries were required to pay an additional premium for uninterrupted power supply.
For more than a decade, NEA has struggled to recover the dues, as many firms refused to pay the premium charges for electricity consumed during peak load-shedding hours.
After industries failed to settle their dues even by the extended deadline of October 19, NEA disconnected power supply to 25 manufacturing firms. However, electricity was later restored to two industries after they paid their first installment.
