Government's decision on electricity dues leaves Nepal Electricity Authority dissatisfied
KATHMANDU: While the government has taken a lenient stance towards industrialists regarding the dues of dedicated feeder and trunk lines, the Nepal Electricity Authority (NEA) remains dissatisfied with this decision. The cabinet meeting held last week resolved to implement the report of the inquiry committee established to investigate the contentious tariff dispute. Formed on January 9, the committee, led by former Supreme Court Justice Girish Chandra Lal, submitted its findings to the government on May 5.
The committee's report recommended that the government refrain from levying premium charges on industrialists for the first six months between mid-July 2015 and mid-January 2016. Additionally, it suggested waiving premium charges beyond June 2018, following the official end of load shedding in the country. However, the NEA's dissatisfaction stems from its decision to impose additional fees on energy-intensive industries in 2015 due to power outage concerns. Despite the reduction in premium charges from 65 percent to 15 percent, manufacturers continue to dispute paying dues for the aforementioned periods.
Dedicated feeder service allows factories requiring high voltage lines to receive direct electricity from nearby substations, while trunk lines provide regular electricity through two substations. The NEA had set premium charges for factories using dedicated feeders from August 2015, a decision contested by manufacturers who argue against paying dues even after the official end of load shedding.
The committee's recommendations include charging premium fees for electricity consumed between February 2016 and April 2018 based on consumption recorded by Times of the Day (TOD) meters. However, NEA Managing Director Kulman Ghising expressed dissatisfaction with the report, citing concerns about its effectiveness in providing a long-term solution. Ghising highlighted practical challenges such as the lack of a mechanism to issue daily electricity billing, and awaiting clear guidance from the government to provide an official response to the issue.