FNCCI for forming high-powered commission to resolve tariff dispute

KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to form a high-powered commission to resolve differences between the Nepal Electricity Authority (NEA) and industrialists regarding the unpaid tariff of dedicated feeders and trunk lines.

The commission, which should also include representatives from the private sector, will study past practices, the present situation, TOD metering, among other issues, and provide its suggestions, FNCCI said in a statement issued on Sunday. “Power supply to industries should resume until the commission submits its report,” it added.

FNCCI expressed concern over NEA’s decision to cut power supply to industries before the dispute on unpaid tariffs is resolved. “The Prime Minister, during a meeting with private sector representatives in September, directed the NEA not to cut power supply. Since the issue was also discussed with other state agencies, the private sector was assured that the stalemate could be resolved without cutting power supply,” FNCCI stated. “However, NEA has started cutting power supply to industries.”

NEA cut power supplies to Laxmi Steels and Sarbottam Cement on Sunday. The outstanding dues of Sarbottam Cement and Laxmi Steels stand at Rs 850 million and Rs 620 million, respectively.

Earlier on Friday, NEA had cut power supplies to four industries – Jagamba Steels, Reliance Spanning Mills, Arghakhanchi Cement, and Ghorahi Cement. Jagadama Steels alone owes the NEA Rs 4.14 billion in unpaid electricity bills. Reliance, Ghorahi Cement, and Arghakhanchi Cement owe Rs 1.94 billion, Rs 1.36 billion, and Rs 1.3 billion to the NEA.

“The NEA and the industries are divided over whether industries consumed power supplied through dedicated feeders and trunk lines. Industries are saying they are ready to settle outstanding dues based on Time of Day (TOD) meter,” FNCCI said. “FNCCI believes that industries should pay if there are any outstanding dues as per the law to NEA. Otherwise, they cannot be forced to make payments.”

NEA swung into action after Prime Minister Pushpa Kamal Dahal directed the utility to recover outstanding dues by cutting off their power supply.