KATHMANDU, Nov 2: The long-running dispute between the Nepal Electricity Authority (NEA) and industrialists over dedicated and trunk power lines has deepened after eight years of deadlock. The NEA cut power lines to 25 factories after they refused to pay premium charges, prompting those industries to shut down. The NEA insists on collecting the dues, while industrialists argue they will not pay until the NEA provides Time-of-Day (ToD) meter data.
The NEA had issued a three-week ultimatum on September 28, 2024. When industries still did not pay, the authority disconnected their power supply last week. According to NEA data, 25 private industries owe about Rs 5.5 billion, while a total of 31 industries still have outstanding dues, six of which have obtained interim court orders. The NEA claims total dues amount to around Rs 6.5 billion.
The dispute is closely linked to Energy Minister Kulman Ghising’s reputation. Ghising, who was removed as NEA chief during KP Sharma Oli’s tenure for pushing to collect the dues, now heads the Energy Ministry, making the issue even more sensitive.
Neither the government nor the industrial sector has taken responsibility to resolve the issue through dialogue. Private sector umbrella bodies like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI), and the Cement Manufacturers Association have urged a solution, but uncertainty persists. The shutdown of factories has reduced power consumption, caused job losses, and cost the government millions in daily revenue.
Cement Manufacturers Association Chair Raghunandan Maru accused the government of using force to collect money. “If we must pay, the NEA should provide ToD meter data as proof,” he said. “Without that, how can they demand payment?”
Dedicated and trunk line dispute: Line disconnection for non-pa...
Industrialists argue that the government’s tough stance has discouraged investors already shaken by recent movements such as the ‘Jengee’ protests. They complained they were denied a meeting with Prime Minister Sushila Karki despite repeated requests. “Twenty-five large industries have shut down, costing the state huge revenue,” said Maru. “Even then, the Prime Minister showed no concern.”
Minister Ghising remains firm on collecting the dues, saying he will not hesitate to act against industries that have refused to pay for years. He stated that during the load-shedding period, several major industries had enjoyed dedicated and trunk line facilities without paying the agreed premium charges.
He revealed that in the past, four attempts to collect the dues were obstructed by political interference. “The NEA was never allowed to exercise its right to collect payments,” he said on social media. He added that when he wrote to the Electricity Regulatory Commission on March 24, 2025, seeking to recover arrears under existing regulations, he was removed from office the same day.
“If we allow non-payment to become a norm, tomorrow others will stop paying too,” Ghising warned. “That will set a wrong precedent and could even lead to tax defaults, threatening the state’s fiscal stability.”
He stressed that industries that feel aggrieved have the right to seek legal remedy. His remarks signal the government’s hard line on the issue. Despite calls for Prime Ministerial mediation, no concrete effort has been made. The FNCCI has formally urged both sides to hold talks, saying the unresolved dispute has harmed Nepal’s image at home and abroad.
The federation said it is ready to help facilitate talks if needed. “Since factory closures affect the investment climate, resolving this dispute is essential,” it stated. The CNI noted that the economy is already under pressure, and productive industries are operating at minimal capacity. Cutting off their electricity, it said, has worsened their situation and hurt workers.
The controversy dates back to June 2015, when, during heavy load-shedding, the government decided to supply electricity to certain industries through dedicated and trunk lines for extra “premium charges.” The arrangement was meant for industries consuming power continuously for 20 hours or more a day.
Industrialists paid the premium during that period, but in 2018, the NEA billed them retroactively from 2015, demanding unpaid charges for using dedicated and trunk lines. The billing sparked the ongoing dispute.
Industrialists accuse the NEA of arbitrary billing and of ignoring its own rules, including the 2016 Electricity Tariff Collection Regulation and NEA Board decisions. They maintain they are ready to pay based on ToD meter data, but the NEA has not provided it. Some claim they never applied for dedicated or trunk line connections, yet were billed for premium rates.
A commission led by former Supreme Court justice Girish Chandra Lal had investigated the issue and recommended that industries should not be charged extra from July 2015 to January 2016, and again after April 2018. The commission advised collecting dues only from February 2016 for dedicated lines and from July 16, 2016, for trunk lines, based on verifiable records. The then Cabinet had endorsed the commission’s recommendations.
Despite that, the issue remains unresolved, raising questions over the government’s handling of industrial policy and regulatory consistency.
