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Kathmandu, Oct 28: The Nepal Electricity Authority (NEA) is facing a major daily loss after cutting power supply to 25 large industries over unpaid electricity dues. These industries, which used to consume about 250 megawatts of electricity daily, have now been forced to halt operations.

Some factories have already granted leave to their workers until the power is restored. Experts estimate the NEA is losing around Rs 60 million per day in revenue due to the disruption. According to NEA spokesperson Rajan Dhakal, the 25 industries together were consuming about 250 MW of power. He said the authority was compelled to cut their lines after they failed to clear dues within the deadline.

Former NEA executive director Mukesh Kafle wrote on Facebook that the authority has lost Rs 60 million in daily revenue after cutting electricity to 25 industries. He added that while the NEA must collect dues in line with law and evidence, industries too have an obligation to pay.

“By cutting power to 25 industries, the authority has lost Rs 60 million in daily revenue and 250 MW of electricity is going to waste. Over 40,000 jobs are now at risk, and the government is losing significant tax revenue,” Kafle wrote.

He argued that the government’s move has damaged the overall business environment.

Following the NEA’s decision to cut lines of industries using electricity through dedicated feeders and trunk lines, many workers now face potential job losses, and industrialists have grown anxious.

After the government formed under the pretext of the Gen-Z movement cut off power to these industries, business owners have been trying to meet Prime Minister Sushila Karki, Finance Minister Rameshwar Khanal, and Industry Minister Anil Kumar Sinha, but none have agreed to meet, a businessman said.

“About 250 MW of electricity supply has been cut off. That power is being wasted, and the NEA has lost the associated revenue,” one industrialist informed. “We pay Rs 10 per unit, so the government is also losing excise duty and VAT.”

The industrialist added that since the issue was still under review, cutting power prematurely had worsened the situation. They said they had already deposited five percent of the disputed amount with the NEA as part of the review process, and that the authority’s move was unfair.

According to the NEA, the 25 affected industries together owe Rs 5.48 billion in unpaid electricity charges. The deadline to clear dues expired on October 18, after which, starting from October 20, the authority began cutting power to the biggest defaulters.

On the first day, power supply was disconnected to six major industries: Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills.

The NEA said Jagadamba Steel owes Rs 1.60 billion, Reliance Spinning Mills Rs 753.7 million, Shivam Cement Rs 778.8 million, Ghorahi Cement Rs 508.5 million, Arghakhanchi Cement Rs 448.4 million, and Triveni Spinning Mills Rs 321 million.

The dues date back to the period between January 2016 and April 2018 and relate to premium charges for using dedicated and trunk lines during load-shedding. The NEA claims that while these industries consumed electricity through special lines during power shortages, they failed to pay the additional premium fees set for that service.

People’s News Monitoring Service