The government has revived an administrative review committee in a renewed effort to settle the long-standing dispute over dedicated feeder and trunk line electricity dues owed by industrial enterprises.
A recent meeting of the Nepal Electricity Authority (NEA) Board, chaired by Energy Minister Biraj Bhakta Shrestha, formed a new committee under the leadership of Krishna Basnet to examine the controversial dues accumulated over the past decade.
Review Process Resumed
The review mechanism was first introduced in March 2024 by then Energy Minister Deepak Khadka during the government led by KP Sharma Oli. However, the committee was dissolved in October of the same year by then NEA Executive Director Kulman Ghising.
Dispute Dates Back to Load-Shedding Era
The controversy originated in August 2015, when the NEA introduced premium tariffs for industries receiving uninterrupted electricity supply through dedicated feeders and trunk lines during the country’s severe load-shedding period.
Under the arrangement, energy-intensive industries were required to pay additional charges above the standard electricity tariff in exchange for continuous power supply. According to the NEA, a number of industries failed to settle these premium charges for electricity consumed during peak load-shedding hours.
The authority has been attempting to recover the outstanding dues for more than a decade, issuing repeated notices and deadlines. However, many industrialists have continued to contest the bills.
Power Disconnections and Review Mechanism
After industries failed to comply with payment demands, the NEA disconnected electricity supply to 23 manufacturing industries last year. The authority subsequently offered industrial users two options: pay the outstanding dues in up to 28 installments or seek an administrative review of their bills.
To facilitate participation, the previous NEA leadership reduced the deposit requirement for filing a review application from 25 percent of the disputed amount to just 5 percent.
Following the decision, 46 industries applied for administrative review. However, the process stalled amid political developments and the Gen Z-led protest movement.
Fresh Notice Issued Under New Leadership
On April 13 this year, the NEA, under Executive Director Hitendra Dev Shakya, issued a fresh public notice directing industries with outstanding dues accumulated between mid-January 2016 and mid-May 2018 to clear their liabilities within the prescribed timeframe.
According to the NEA, the total unpaid amount under the dedicated feeder and trunk line scheme exceeds Rs 8 billion.
Attempt to End a Decade-Long Controversy
The revival of the administrative review committee signals a renewed attempt by the government to resolve one of Nepal’s most contentious disputes involving industrial electricity tariffs. Authorities hope that the review process will provide a framework for addressing disagreements while facilitating the recovery of billions of rupees in outstanding dues.
