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Kathmandu, Nov7: The dispute between the Nepal Electricity Authority (NEA) and industrialists over unpaid tariffs has begun to ease after ten manufacturing companies cleared the first installment of their long-overdue bills for using dedicated feeders and trunk lines. The development follows mediation led by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), which stepped in to resolve the standoff.

According to NEA officials, firms including Everest Rolling Mill, Bhalwari Automatic Factory, SR Foods, SR Steel, Panchakanya Steel, Panchakanya Plastic, Shyam Plastic, Siddhartha Pet Plast, Gharana Foods, and Goyanka Foods made partial payments by Thursday. Their power supply, which had been cut off earlier, has now been restored.

The FNCCI had proposed that factories begin paying dues in installments as a form of security deposit, provided the NEA reconnected their power lines. The state-owned utility had disconnected 25 industrial firms after they failed to meet the October 19 payment deadline.

The conflict stems from a premium tariff system introduced in 2015, when the NEA charged higher rates to industries operating on dedicated feeders and trunk lines during peak load-shedding periods. These special arrangements gave factories uninterrupted electricity in exchange for additional fees. Many companies, however, refused to pay the premium, arguing that the charges were unfair.

NEA data shows that about Rs 8 billion is still owed by 49 firms for power consumed under those arrangements a decade ago. To settle the issue, the authority has now permitted companies to clear the arrears in 28 installments or file for an administrative review if they contest the charge.