KATHMANDU: Nepal Electricity Authority (NEA) reconnected the electricity supply lines to six industries on Tuesday on condition that they pay the arrears within three months. However, the industrialists have not shown signs of accepting the NEA’s conditions.

Following Prime Minister KP Sharma Oli's verbal and written instructions to the Electricity Regulatory Commission, the board of directors' meeting held on Tuesday decided to reconnect the power lines with specific conditions. The board decided that if the industrialists did not pay the arrears within three months, action would be taken to recover the dues. The power lines were restored at 8 pm on Tuesday, according to Deputy Executive Director Manoj Silwal.

However, the industrialists are unwilling to pay the fees according to the conditions set by the NEA. They have stated they will only pay the dues if the NEA provides bills with sufficient evidence that the industries consumed electricity from dedicated feeders and trunk lines.

"We have never said that we will not pay the arrears. However, the NEA should be able to submit the bill based on sufficient evidence," Pashupati Murarka, the owner of Arghakhanchi Cement, told New Business Age. He expressed surprise that the NEA is unwilling to provide the evidence.

Officials of the NEA claim that in addition to TOD meter data, they have other sufficient evidence. TOD meters record electricity consumption details during the day, month, and year. However, since the NEA could not protect this evidence, it has been challenging to provide sufficient proof. The NEA sent letters to 61 industries on June 24, demanding the dues for the period from January 2015 to April 2018 within 15 days.

As none of the industrialists settled the arrears by July 9, the NEA cut the electricity lines of Reliance Spinning Mills, Ghorahi Cement, and Arghakhanchi Cement on July 9. The next day, the NEA cut the lines of Jagdamba Synthetic followed by Hulas Steel and Jagdamba Steel on July 11.

According to the NEA, the industrialists owe Rs 6.65 billion in addition to a 25 per cent fine, amounting to about Rs 8.25 billion. Initially, the NEA had calculated that industrialists who consumed electricity from the dedicated feeder and trunk line owed Rs 21.3 billion. However, the arrears were revised after taking into consideration the recommendation of a commission formed by the government to address the dispute.

Specifically, Jagdamba Steel owes Rs 1.60 billion, Jagdamba Synthetic Rs 200 million, Reliance Spinning Mills Rs 753.7 million, Ghorahi Cement Rs 510 million, Arghakhanchi Cement Rs 440 million, and Hulas Steel Rs 140 million.

An official of the Ministry of Energy, Water Resources and Irrigation stated that the decision to reconnect the lines was made after five out of eight board members signed the minute prepared by the executive director of the NEA, Kulman Ghising, following the meeting on Tuesday. Despite holding two meetings earlier on Monday, the decision to reconnect the lines could not be finalized.

The minutes prepared by Ghising were signed by the Energy Minister and Chairman of the Board of Directors Deepak Khadka, Managing Director and Member Secretary Ghising, and Committee members Ram Prasad Ghimire, Sarita Dawadi, and Ratan Bahadur Aire. Another member, Bharat Acharya, is out of Kathmandu and will sign the minutes upon his return, according to the source.

"Members Bhakta Bahadur Pun and Kapil Acharya refused to sign the proposal to reconnect the line," said the source. They argued that the line should not be reconnected based on the instructions given by the Regulatory Commission. "Since the line was cut based on the decision of the Council of Ministers, they believe that a decision from the Council of Ministers is required to reconnect it," the member explained.