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NEA to follow its previous decision to collect dues of dedicated feeder, trunk line from industries

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NEA to follow its previous decision to collect dues of dedicated feeder, trunk line from industries
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May 14: Nepal Electricity Authority (NEA) has decided to implement its previous decision on recovering outstanding dues from industries for using electricity through dedicated feeders and trunk lines, ignoring an instruction issued by the Parliamentary Accounts Committee (PAC). 
A meeting of NEA's board of directors held recently decided to collect the outstanding dues as per its earlier decision.

In the month of February, NEA had decided to collect electricity dues from the industrialists by mid-July. It had warned industrialists of slapping a penalty if they fail to settle it by mid July.

However, on April 4, PAC directed the Nepal Electricity Authority (NEA) through the Ministry of Energy to collect the outstanding electricity dues from the industrialists within a month.

Ignoring the PAC directive, NEA now wants to collect the tariffs as per its earlier decision, citing the impact of pandemic on businesses and industries. NEA has also sent a letter to the PAC seeking another favorable instruction from the parliamentary committee considering the adverse impacts of current pandemic and subsequent prohibitory orders imposed by local administrations. 

Rameshwor Poudel, an ex-officio member in the NEA board, said that the board meeting decided to implement its previous decision related to the settlement of outstanding dues from industrialists for using electricity from trunkline and dedicated feeders due to the pandemic. 

"The PAC had asked to collect the dues within a month. We had to comply with the parliamentary committee’s instruction. But, recent prohibitory orders imposed to control the second wave of coronavirus have hit industries,” said Poudel.  “In such a case, the implementation of the PAC directive was going to become difficult. So, we were compelled to act according to the previous decision made by the board," he said. 

Poudel said NEA will act in a way that will not further affect the industries which have already been hit hard by the pandemic. “But, if the PAC again issues us a directive to collect the dues within a month (mid June), we will act accordingly,” he added. 


There is a long dispute between industrialists and the NEA over the settlement of dues for using electricity from dedicated feeders and trunk lines.  

Earlier on July 21, the PAC had formed a sub-committee led by lawmaker Minendra Rijal to look into the issue of dedicated electricity tariff. Based on the report, the PAC, on April 4, instructed the government to collect all dues within a month. There was a total of Rs 10.14 billion outstanding dues that industrialists owe to the NEA. 
NEA had supplied electricity to industries through dedicated feeder and trunk lines by charging a premium of 65 percent in the electricity tariffs. The NEA, which did not have authority to fix tariff, had got approval of its tariff rates from the then Electricity Tariff Fixation Commission in February 2016. 
Industrialists are at odds with the NEA over the tariffs that NEA has fixed prior to the approval from the Commission.   

Some industrialists even claim that the NEA has billed them for the electricity that their industries did not use during the load shedding.
 

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