The eight-year-long dispute between the Nepal Electricity Authority (NEA) and industrialists over dedicated and trunk lines has deepened. After NEA cut lines citing unpaid premium fees, 25 industries have shut down. While the authority is determined to recover dues, the industries refuse to pay, claiming they have not received Time-of-Day (TOD) meters.

NEA had issued a three-week ultimatum on September 28. Despite repeated warnings, industries allegedly refused to pay, prompting the authority to cut power last week. According to NEA, 25 private industries have an outstanding dues of about Rs 5.5 billion. In total, 31 industries owe around Rs 6.5 billion, of which six have secured interim court orders.

The electricity fee dispute is also linked to the reputation of NEA’s former managing director, Kulman Ghising. Ghising, removed by the previous KP Oli-led government for insisting on dues recovery, is now the Energy Minister, making the issue even more sensitive.

Neither the government nor the industrialists have taken responsibility for resolving the matter through dialogue. Industry umbrella bodies - including the Federation of Nepalese Chambers of Commerce and Industry, Nepal Industries Association, and Nepal Cement Producers Association - have been urged to intervene but have yet to take concrete action. The shutdown has reduced electricity consumption and left workers unemployed, while the government loses millions in daily revenue.

Raghunandan Maru, president of Nepal Cement Producers Association, accused the government of demanding money through coercion. “If we are to pay, NEA should provide TOD meter data, which they have not,” he said. Maru said that attempts to meet Prime Minister Sushila Karki were unsuccessful. “When 25 major industries close, the state loses millions in revenue, yet the Prime Minister shows no concern,” he said, stressing that dialogue is necessary to resolve the problem.

Energy, Water Resources and Irrigation Minister Kulman Ghising remains firm on recovering dues. He said that industries that have not paid for dedicated and trunk lines over the years will face legal action. Ghising claimed that even during load-shedding, some large industries have not paid premium fees for dedicated and trunk lines.

“Attempts to recover dues were obstructed politically four times in the past,” Ghising posted on social media, emphasizing NEA’s right to collect dues. He recalled that he was removed from his position on 11 Chaitra 2081 after writing to the Electricity Regulatory Commission to collect arrears. “If this practice continues, other consumers may also stop paying, undermining the system,” he warned.

Ghising said that industries have the right to seek justice if they feel wronged. Despite calls for the Prime Minister to play a mediating role due to the longstanding tussle between the minister and industrialists, no concrete steps have been taken. The Nepal Industries Association formally urged both parties to enter dialogue to resolve the dispute.

The long-standing issue has sent a negative signal domestically and internationally, the association said, offering to facilitate talks if needed. They stressed that industry closures negatively affect the investment climate and urge swift resolution.

The dedicated and trunk line system was introduced in July 2015 to supply electricity to industries during load-shedding, charging a premium for consumption over 20 hours. Industries that consumed electricity during extended load-shedding paid premiums at that time. NEA’s billing in 2018 for dues dating back to 2015 triggered the ongoing dispute, which remains unresolved.

Industries claim NEA has pressured them to pay without providing TOD meters. NEA’s actions are alleged to contravene its own policies, 2016 Electricity Fee Collection Regulations, and NEA Board decisions.

Industries are willing to pay based on TOD meter readings, but NEA has not provided meters. Bills for premium fees were issued to industries that had not even applied to consume electricity via dedicated or trunk lines.

The government had previously formed a commission led by former Supreme Court Justice Girishchandra Lal to study the dispute. Industries now demand implementation of Lal Commission’s recommendations. The commission suggested that dues should not be collected beyond the legally verified period - November 2015 onwards for dedicated lines and July 2016 onwards for trunk lines. The then Cabinet had instructed NEA to follow the commission’s recommendations for dues recovery.