Industrialists have expressed doubts over the government’s new middle-ground proposal aimed at resolving the prolonged dispute surrounding dedicated and trunk power lines.
Two weeks after the Nepal Electricity Authority (NEA) cut power to 25 industries for failing to pay premium charges, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) initiated formal talks with the government to seek a solution.
After remaining silent for two weeks, the government advanced a new proposal following industrialists’ refusal to pay. In a meeting attended by Prime Minister Sushila Karki and several ministers, FNCCI President Chandra Prasad Dhakal suggested that industries deposit an amount equal to one of the 28 instalments as a disputed sum—classified as a security deposit, not payment—in exchange for immediate reconnection of electricity. Dhakal said both the prime minister and government officials agreed to the arrangement.
“Industries will get their power lines reconnected after depositing one instalment amount as a security deposit, not as payment,” Dhakal said, adding that industries could later request a review. He maintained that there was no reason for skepticism.
The meeting, held at the Prime Minister’s Office, was attended by Finance Minister Rameshore Khanal, Energy Minister Kulman Ghising, Industry Minister Anil Sinha, Chief Secretary Ek Narayan Aryal, and private-sector representatives. Some industrialists, however, were dissatisfied that those most affected by the power line dispute were not included in the consultation.
According to the agreement, industries may submit the deposit to the NEA while formally stating their disagreement and requesting a review or pursuing legal remedies.
The proposal emerged after industrialists expressed willingness to deposit the disputed amount only if NEA accepted it without classifying it as payment and allowed them to retain the right to seek judicial review.
Despite this, many industrialists remain cautious, fearing that the term “security deposit” could later be interpreted as “payment.” One industrialist noted that without a clear written commitment from the relevant ministries, skepticism would persist, citing past instances of being “misled.”
The dispute over dedicated and trunk line tariffs has stretched on for eight years. NEA recently disconnected power to 25 industries that failed to pay premium charges, forcing them to halt operations. NEA had issued a three-week ultimatum on September 28, and after the deadline passed, the authority cut their power.
NEA estimates that 25 private industries owe around Rs 5.5 billion, while a total of 31 industries have outstanding dues of approximately Rs 6.5 billion. Six of these have obtained interim court orders.
The conflict is further complicated by the role of Energy Minister Kulman Ghising, who had pushed for premium charge recovery during his tenure as NEA managing director—a move that led to his removal by the then KP Sharma Oli government. His current ministerial position adds a political dimension to the ongoing issue.
Industrialists maintain they are willing to pay based on Time-of-Day (ToD) meter readings, but claim NEA never installed the required meters. They also argue that premium bills were issued even to industries that had never applied for dedicated or trunk line services.
Four Industries Reconnected
Power supply has been restored to four of the affected industries—Panchakanya Plastic Industry, Panchakanya Steel Industries, Siddhartha Pet Plant, and Shyam Plastic—all located in Rupandehi’s Bhairahawa industrial area. Panchakanya reportedly deposited the disputed amount under the condition that it could still pursue legal review.
