Kathmandu– The Nepal Electricity Authority (NEA) has disconnected power to 26 prominent industries across Nepal due to unpaid electricity bills amounting to Rs 5.48 billion, a move that has sparked strong criticism from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
The FNCCI has condemned the NEA’s decision, calling it “regrettable” and pointing out that the authority took action before holding hearings on the pending appeals with its review committee. The NEA claims that these industries had failed to clear their dues by the deadline of October 19, leading to the disconnections, which began on October 21.
As of October 23, electricity supply had been cut to several major companies, including Jagdamba Steel, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement Industries, Reliance Spinning Mills, and Triveni Spinning Mills. These industries, which are major consumers of electricity, together used approximately 250 megawatts of power daily, contributing around Rs 60 million in daily revenue—losses now resulting from the disconnections.
The NEA stated that it had issued multiple notices regarding the unpaid dues, but no response was received. In its defense, the authority argued that these industries had benefited from uninterrupted electricity supplied through dedicated and trunk lines during load-shedding and had failed to pay the additional premium fees for this service.
However, industrialists have strongly rejected these claims, labeling the bills as “unjustified, fake, and discriminatory.” They argue that they did not exceed their allocated power usage and accuse the NEA of exploiting the dispute to intimidate industries that are still struggling in a fragile economic environment.
Both the FNCCI and the affected industrialists have called for urgent government intervention to facilitate dialogue between the NEA and the industries. The FNCCI stressed that power disconnections are detrimental to an already fragile industrial sector, still recovering from disruptions such as the impact of the Gen Z movement.
The FNCCI also pointed out that a review process was already underway, as recommended by the Lal Commission, headed by former Supreme Court Justice Girish Chandra Lal. The commission had suggested that dues be verified based on evidence and that industries be allowed to appeal the charges, supported by a 5% bank guarantee.
However, after Kulman Ghising, who previously issued the original Rs 22 billion bill as NEA Executive Director, became the Minister of Energy, the NEA dismissed the Lal Commission’s recommendations. Instead, industries were directed to settle all dues immediately, resulting in the disconnections when the deadline was not met.
The FNCCI has appealed to Prime Minister Sushila Karki, along with the Ministers of Finance and Industry, to step in and resolve the issue through dialogue. The federation warned that the ongoing standoff could have serious consequences for Nepal’s industrial sector, potentially deepening the country’s economic slowdown and worsening the employment crisis if not addressed promptly.
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