KATHMANDU: After the Nepal Electricity Authority (NEA) cut off electricity to half a dozen industries due to a dispute over arrears related to dedicated feeder and trunk line fees, industrialists announced that they will not consume NEA's electricity. In a press release issued on Sunday, the "Victims and Oppressed Industrialists Group" stated that until NEA provides uninterrupted and continuous electricity supply to all industries whose supply has been cut, none of the other industries will consume electricity from NEA.

On Tuesday, NEA cut the lines of Reliance Spinning Mills, Ghorahi Cement, and Arghakhanchi Cement. On Wednesday, the-state-owned utility also cut the lines of Jagdamba Synthetic and Hulas Steel, and on Thursday, Jagdamba Steel's electricity was also disconnected. The NEA claims that more than five dozen industries still owe dues.

The industrialists in the statement argued that no industry will take electricity supply from NEA until the current dispute is resolved according to the recommendations given by the Lal Commission and the directives from the Cabinet.

“Industries are ready to pay the tariff if NEA issues a bill with evidence to the industry,” the statement reads, adding, "It is regrettable that the authority's leadership is cutting power in a way that undermines the self-esteem of industrialists when they ask for the basis and reason for it."

A committee headed by former justice Girish Chandra Lal recommended that NEA should collect only limited arrears based on evidence, a recommendation that the Council of Ministers decided to implement. The industrialists have argued that they have not paid the arrears as demanded by the NEA because it has only sent bills without proof.

The NEA has decided to give industrialists 28 months to pay the arrears in installments, but the industrialists have refused to consume the electricity supplied by the NEA.

According to NEA, industrialists owe Rs 8.25 billion including Rs 6.658 billion fee and a 25% fine for the use of electricity through dedicated feeders and trunk lines from January 2072 to May 2075.

On Wednesday, the NEA Board of Directors decided to provide a long-term installment facility to industrialists for the payment of the outstanding amount. NEA sent a letter to 61 industries on June 24, ordering them to pay the dues within 15 days. After none of the industrialists cleared the dues within the given deadline, NEA cut the lines of six industries at different stages.

Manoj Silwal, the Deputy Executive Director of NEA, said the installment facility was provided considering the financial burden on industries to pay the amount at once. He told New Business Age, "Even though we have cut the lines of six industries, the remaining 55 industries have not come to pay the amount. This also indicates they are in a difficult financial situation. Some industrialists are still contacting us and requesting installment facilities. Therefore, the authority is in favor of providing facilities for those who intend to pay."

However, industrialists claim they have not demanded installment facilities from the authority. Shashikant Agarwal, the owner of Reliance Spinning Mills, told New Business Age that they would not pay the amount to the authority, regardless of the time given for installment facilities.

According to the industrialists, NEA went against the Lal Commission's decision and issued the bills. NEA sources have said that the Lal Commission's report is not in the interest of NEA and favors only the industrialists.