Power Supply Restored to All Industries After First Installment Payment of Dedicated and Trunk Line Dues

Nepal Electricity Authority (NEA) has restored electricity supply to all industries that were previously disconnected for failing to pay premium tariffs under the dedicated and trunk line consumption category. According to the authority, power supply has resumed after the industries cleared the first installment of their dues as part of the 28-installment repayment plan announced earlier.

Background of the Disconnection

The NEA had recently disconnected power to 25 industrial units due to unpaid dues related to dedicated and trunk line tariffs. Among them, three industries had already lost their connection earlier for failing to pay even the regular monthly charges. The authority has clarified that, as of now, no industrial power line remains disconnected solely due to unpaid dedicated or trunk line fees.

Out of those three, Everest Paper Mills and Butwal Cement Industry have not paid their regular electricity bills, while another industry had shut down without repairing its transformer. The NEA noted that industries under legal or maintenance constraints were already non-operational prior to the recent disconnections.

Installment Settlement and Payments

On Ashwin 12 (late September), the NEA issued a public notice granting 21 working days to settle arrears under a 28-installment scheme. Thirteen industrial consumers complied and paid their dues within the deadline, while the remaining 25 faced disconnection. Later, major industries including Hulas Steel, Ashok Steels, Hama Iron and Steels, Laxmi Steels, and Sarbottam Cement utilized the installment facility and paid their first installment, prompting the NEA to reconnect them.

For instance, Hulas Steel, with outstanding dues exceeding NPR 140 million, has paid NPR 5.043 million as its first installment. Similarly, Ashok Steels in Simara paid NPR 6.3 million, while several others followed suit, regularizing their power supply.

Legal and Administrative Status

NEA spokesperson Suresh Bahadur Dhakal confirmed that six industries obtained interim court orders preventing power disconnection, and government-owned enterprises — Hetauda Cement and Udaypur Cement — were spared from disconnection after committing to pay. However, the NEA emphasized that the legal and policy dispute over the dedicated and trunk line tariff structure remains unresolved, even though immediate supply disruptions have been settled.

This episode highlights the NEA’s balancing act between revenue recovery and industrial stability. While the installment plan provided temporary relief, the underlying tariff dispute — centered around premium rates for high-capacity industrial users — still awaits final judicial clarification. The authority’s phased approach reflects an attempt to ensure industrial continuity without compromising financial discipline.

In the broader context, this move reassures industrial consumers that the NEA is open to structured settlements rather than abrupt enforcement, while signaling that timely payment compliance will remain mandatory under Nepal’s evolving industrial electricity framework.