Nepal Electricity Authority to restore power to industries

July 22, 2024, 12:00:49 PM |

KATHMANDU: In a significant development, the board of directors of the Nepal Electricity Authority (NEA) has decided to restore electricity to several industries where power supply had been previously disconnected. This decision comes after growing pressure and directives from the government, including a clear mandate from Prime Minister KP Sharma Oli.

The NEA had earlier severed power connections to numerous industries operating under trunk lines and dedicated lines due to non-payment of dues. The move was part of the Authority’s broader strategy to enforce payment compliance and recover outstanding revenues. However, this drastic action had sparked concerns and criticism from various quarters, leading to an urgent review of the situation.

In a board meeting held on Monday morning, the NEA’s directors reached a consensus to reconnect the power supply to the affected industries. This decision is seen as a response to earlier instructions given by Prime Minister Oli, who had directed the NEA’s Managing Director, Kulman Ghising, to restore electricity to these industries as a matter of priority. Despite the Prime Minister’s directive, power had not been reinstated, leading to further complications and dissatisfaction.

Prime Minister Oli had raised the issue in the House of Representatives meeting on Sunday, highlighting that although Managing Director Ghising had dispatched the bills to the industries, he had failed to provide adequate proof of payment or reconciliation efforts. This lapse in communication and procedural transparency prompted a more decisive intervention from the board.

The NEA’s board has now mandated that industries with outstanding dues must clear their payments within three months to avoid future disruptions in power supply. This timeline is intended to provide a reasonable window for industries to address their financial obligations while ensuring that the NEA can recover the overdue amounts efficiently.

The restoration of power is expected to provide significant relief to the affected industries, many of which had been struggling to maintain operations without a stable power supply. The board’s decision underscores a critical balancing act between enforcing payment compliance and supporting the operational needs of the industrial sector.

As the NEA moves forward with implementing this decision, stakeholders will be closely monitoring the situation to ensure that the terms are adhered to and that the power restoration process is executed smoothly.

Fiscal Nepal |

Monday July 22, 2024, 12:00:49 PM |