Nepal’s Power Authority Cuts Supply to Industries Over Dues

Nepal’s Electricity Power Supply Authority, Nepal Electricity Authority (NEA), has disconnected electricity supply to six major industries after they failed to pay long-standing bills, beginning the first phase of a crackdown on arrears.

The affected companies – Jagdamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills, had not settled charges dating from January 2016 to April 2018, despite a 21-day ultimatum to pay by October 21.

The total debts are substantial, with Jagdamba Steel owing Nepali Rupees 1.6 billion and Reliance Spinning Mills Nepali Rupees 753.7 million. Other companies collectively owe hundreds of millions more. Thirteen additional firms have agreed to pay in installments, while the NEA has warned that further disconnections are planned for non-compliant industries.

Spokesperson Rajan Dhakal said electricity usage through dedicated feeders and trunk lines from 2016 to 2018 left 56 industries with over Rupees 8 billion in unpaid bills and penalties, with cumulative arrears including fines now exceeding Nepali Rupees 23.44 billion.

The move highlights Nepal’s challenges in enforcing industrial payments and underscores broader concerns over financial sustainability in the country’s power sector.