In a decisive move, the Nepal Electricity Authority (NEA) cut off electricity to six major industrial units for failing to settle overdue charges, signalling that even large firms aren’t off-limits when bills go unpaid
What Happened
- The NEA disconnected the power lines of six companies: Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement and Triveni Spinning Mills after they failed to pay for electricity supplied via dedicated and trunk lines.
- The arrears date back to a system of tariffs for dedicated/trunk lines that was first studied in 2018, yet the payments have remained unresolved.
- The NEA previously issued a public notice on Sept 28, giving these industries 21 days to clear their unpaid amounts; the power cut came after the deadline passed with no resolution.
Why It Matters
- Big companies losing power sparks more than worry, it draws attention to how tariff disputes and long-standing arrears can catch up, even when production and business have been rolling.
- For the industrial sector, this action throws a spotlight on cash flows and trust: if the electricity supplier holds off, it raises fears about continuity, supply chains and investment risk.
- For the wider economy, disconnecting major power users could ripple into jobs, output and investor sentiment; industries halting means output stalling.
What’s Next
- Watch for how the NEA handles this: will it be a full cut-off until payments land, or will negotiated reinstatement with payment plans appear?
- The industries involved will likely push back, challenge billing formulas or seek legal remedy, setting up a test case for other firms in similar dispute.
- Policymakers may need to clarify the system of dedicated/trunk line tariffs, revisit regulatory oversight, and decide when enforcement becomes necessary.
E-Buzz Takeaway
When power is cut to heavy-duty factories, the stakes elevate from boardrooms to living-rooms.
For young professionals and creators in Nepal, this move by the NEA is a reminder: systems once taken for granted can flip.
In a world where energy, industry and livelihoods interconnect, the question isn’t just who owes what, it’s who pays the price when payments wait.
Source: The Himalayan Times – “NEA cuts power supply to six companies defaulting on electricity dues
