The eight-year dispute between the Nepal Electricity Authority (NEA) and industrialists over dedicated and trunk power lines has intensified, leading to the shutdown of 25 industries after NEA cut their electricity supply over unpaid premium fees. While NEA insists on recovering long-overdue dues, industries argue they should not be charged without receiving Time-of-Day (TOD) meters.
NEA had issued a three-week ultimatum on September 28, warning industries to clear their dues. Despite repeated notices, industries allegedly refused to comply, prompting NEA to cut off their electricity last week. According to NEA, 25 private industries owe around Rs 5.5 billion, while a total of 31 industries collectively owe approximately Rs 6.5 billion—six of which have secured interim court orders.
The dispute is further complicated by its connection to Energy Minister Kulman Ghising, who previously faced removal as NEA managing director for pushing dues recovery. His current role as minister has added political sensitivity to the ongoing conflict.
Neither the government nor the industrialists have taken decisive steps toward dialogue. Major industry bodies—such as the Federation of Nepalese Chambers of Commerce and Industry, Nepal Industries Association, and Nepal Cement Producers Association—have been called upon to mediate but have yet to take substantial action. As a result, electricity consumption has dropped, workers have been left unemployed, and the government is losing millions in daily revenue.
Raghunandan Maru, president of the Nepal Cement Producers Association, accused the government of using coercive tactics to collect payments. He argued that NEA must provide TOD meter data before seeking payment and noted that attempts to meet Prime Minister Sushila Karki have been unsuccessful. He stressed that shutting down 25 major industries harms the national economy and urged the government to initiate dialogue.
Minister Ghising, however, remains firm that industries must pay for dedicated and trunk line services. He claims that several large industries failed to pay premium fees even during the load-shedding years and reiterated that NEA’s attempts to recover dues have been politically obstructed multiple times in the past. In a social media post, he warned that failure to collect dues could encourage other consumers to stop paying, threatening the financial integrity of the system.
Industries argue that NEA has pressured them to pay without providing TOD meters, which violates NEA policies, the 2016 Electricity Fee Collection Regulations, and even NEA Board decisions. They say they are willing to pay based on TOD meter readings once meters are installed. Industries also claim that premium bills were issued to some companies that had never applied for dedicated or trunk line services.
The government had formed a commission led by former Supreme Court Justice Girishchandra Lal to study the issue. Industries now demand implementation of the Lal Commission’s recommendations, which state that dues should only be collected for the periods legally verified—November 2015 onward for dedicated lines and July 2016 onward for trunk lines. A previous Cabinet meeting had also directed NEA to follow these recommendations.
Industry associations warn that the unresolved conflict sends a negative signal to potential investors and undermines Nepal’s investment climate. They have urged the government and NEA to resolve the long-standing issue through dialogue as soon as possible.
