KATHMANDU: The government leadership is at odds with government agencies over the Nepal Electricity Authority's (NEA) dispute with industrialists regarding dedicated feeder and trunk line tariffs.

On Friday, Prime Minister KP Sharma Oli issued verbal instructions to the NEA to immediately reconnect electricity lines to six industries whose power was cut due to non-payment of premium fees for the use of dedicated feeder and trunk lines. The NEA had cut off electricity to Reliance Spinning Mills, Ghorahi Cement, Arghakhanchi Cement, Jagdamba Synthetic, Hulas Steel, and Jagdamba Steel for non-payment of premium rates while utilizing the services during the load-shedding period. Other industries with outstanding tariffs have also claimed they have stopped receiving electricity from the NEA.

The NEA leadership has made it clear they would not reconnect the lines without written instructions from the government. In response, the government, through the Electricity Regulatory Commission, instructed the NEA on Sunday to immediately provide electricity to the affected industries. Ram Prasad Dhital, chairman of the commission, confirmed that a letter was sent to the NEA to reconnect the lines according to the Consumer Interest Protection Directive.

Following the regulatory commission's directive, the NEA employees’ union issued a statement on Sunday afternoon supporting the position of Executive Director Kulman Ghising. The union maintained that the lines should be reconnected only after settlement of arrears and that if the government waives the tariffs, it should compensate the NEA for the amount. Industrialists believe that the employees’ union was compelled to issue this statement by Executive Director Ghising himself.

Prime Minister Oli criticized Ghising while speaking in the House of Representatives on Sunday, accusing the NEA of cutting off power indiscriminately without evidence. He questioned why only six industries had their lines cut and demanded an investigation into the matter, emphasizing the need for evidence-based fee collection.

Oli mentioned that industrialists did not refuse to pay but requested proof of consumption. He criticized the NEA leadership for creating a situation where electricity is wasted during the rainy season by shutting down industries. "Recover what is due, but after proper investigation," said the prime minister. "Let the industries run and then collect the dues."

Despite the prime minister's verbal instructions on Friday, the NEA board of directors, in a two-hour meeting held the same evening, concluded that they could not reconnect the lines without written instructions. By Sunday evening, the NEA had not reconnected the lines, even as industrialists remained hopeful that the issue would be resolved in their favor.

An industrialist expressed confidence that, in a legal state, their grievances would be addressed. The industrialist questioned why only six industries were targeted and suggested that if dues are owed, all defaulting industries should have their lines cut.

Previously, on June 24, the NEA had issued letters to 61 industries, giving them 15 days to pay their arrears. When none complied, the NEA began cutting the lines. The NEA stated that 61 industries owe a total of Rs 8.26 billion in arrears, including fines.

As the dispute escalated, the Lal Commission, formed to resolve the issue, recommended waiving the disputed tariffs and collecting dues from January 2015 to April 2018. Although the NEA offered a 28-month installment plan for settlement of the arrears, the industrialists refused to pay without proof. They have threatened to cut their lines themselves if the NEA does not reconnect lines to the affected industries.

Chandan Kumar Ghosh, spokesperson for the NEA, accused the industrialists of spreading false propaganda and questioned their claims of insufficient electricity usage. He reiterated that the NEA would not reconnect the lines without written instructions.

Following the Prime Minister's sharp criticism of the NEA leadership, discussions have begun regarding the position of Kulman Ghisingh as Executive Director. Despite public pressure to reappoint Ghising, known for his role in reducing load shedding in the country, Oli during his earlier stint as the prime minister had appointed Hitendra Dev Shakya to lead the NEA.