The private sector has consented to pay the first installment of the long overdue electricity bill of the controversial dedicated feeders and trunk lines on condition that the installment be recognized as deposit amount.

In a meeting with Prime Minister Sushila Karki and high level government officials on Monday, the industrialists proposed partial payment as a solution to the current impasse. The private sector delegation led by the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal proposed that the government consider the first installment out of 28 breakdown amounts as a deposit. Similarly, they demanded the Nepal Electricity Authority (NEA) to resume electricity supply to their production plants after they pay the portion of the due.

The FNCCI came up with this proposal to end the standoff between the state-owned power utility and the private business firms. As per the proposal, only a little amount out of the hefty dues of over Rs 8 billion is to be paid at present.

In addition to paying the deposits, FNCCI President Dhakal said the industrialists have decided to go ahead with administrative review of the contested bill.

In August 2015, the NEA introduced a premium tariff for factories using electricity through dedicated feeders and trunk lines, citing frequent power outages at the time. The decision required high-energy-consuming industries to pay premium charges on top of the regular fees.

The NEA has been struggling to recover these dues for more than a decade after the defaulting firms refused to pay the premium amounts for using electricity during the peak time of the loadshedding.

After the industrialists did not appear for settlement of dues even after the end of the recent deadline on October 19, the NEA disconnected electricity supply lines to 23 manufacturing firms.

The NEA has shown flexibility to allow industrialists to clear their dues in 28 installments or opt for an administration review process.

The previous NEA leadership had even reduced the deposit requirement from 25 percent to 5 percent to ease the payment process. Following that decision, 46 industries filed applications seeking administrative review, but the process has come to a complete halt following the Gen Z movement.