The Ditible
Jagadamba Steel in Simara, Bara, faces a power outage after the Nepal Electricity Authority (NEA) disconnected its electricity line at 9 pm yesterday. The action comes due to non-payment of dues and related fines associated with a dedicated power line.
Jagadamba reportedly owes the NEA Rupees1.6 billion for the dedicated line, along with a 25% penalty. This disconnection brings the total number of industries impacted by the NEA’s crackdown to six.
Previously, on July 9, 2024, the NEA cut power to Reliance Spinning, Arghakhanchi Cement, Ghorahi Cement, and other facilities. The authority claims these industries haven’t settled premium fees incurred during the load shedding period between February 2016 and May 2018.
Industrialists have vehemently opposed the NEA’s actions, accusing them of harassment and intimidation. They claim the authority threatened to cut power to all industries if the outstanding fees weren’t paid.
During the load shedding period, industries could access uninterrupted electricity through dedicated and trunk lines, subject to premium charges. Despite regular fee payments, premium fees remained outstanding, prompting the NEA to send demand letters. This sparked protests from the industrial sector.
Following the Lal Commission’s recommendations, the government implemented additional tariffs for dedicated and trunk line usage during the disputed load shedding period (February 2016 – May 2018). The Electricity Tariff Determination Commission had already established tariffs for this period.
The NEA’s Board of Directors, during their 973rd meeting on June 18, issued a 15-day deadline for industries to settle outstanding dues related to the 25% premium fees for dedicated and trunk line electricity used between February 2016 and May 2018.
Citing the lapsed deadline, the NEA began power cuts on Tuesday.
