Rupendehi, 25 Oct: The Nepal Electricity Authority (NEA) has cut power supply to ten major industries in the Butwal–Bhairahawa Industrial Corridor from Friday evening due to a long-standing dispute over trunk line tariff payments. Industries affected include Panchakanya Steel, Panchakanya Plastic, Everest Rolling, SR Steel, SR Food, Bhalbari Automatic Rice Mill, Gharana Foods, Goyanka Foods, Siddhartha Pet Plast, and Shyam Plastic Industries.
According to Panchakanya Group’s General Manager, Devendra Sahu, the NEA disconnected electricity over unpaid dues related to trunk line usage — a service that the industries claim they neither requested nor agreed to. The entrepreneurs argue that no formal demand or agreement existed for trunk line consumption, and hence, they have refused to pay what they describe as “unjust back charges.”
The dispute traces back four years when the NEA suddenly billed these industries with an additional 67% higher tariff, despite having received regular payments under normal rates until then. The entrepreneurs say they were never informed about the shift to trunk line billing and that the authority has failed to present evidence proving their demand or consumption of trunk line electricity.
Background: Internal Load Management Turned into a Tariff Dispute
The controversy began after the NEA’s internal load balancing in 2018. A report submitted on March 25, 2019, led by NEA board member Bhakta Bahadur Pun, stated that due to internal network management, power from the Bhairahawa substation was rerouted to the Amuwa substation, inadvertently categorizing the Panchakanya corridor under the trunk line definition.
However, NEA’s own Bhairahawa Distribution Chief, Umesh Chandra Jha, had commented that since the shift was made for internal load balancing — not as a dedicated line for continuous 20-hour power — the industries should be billed at normal rates, not premium trunk line rates.
Industrialists argue that during the disputed period (from March 2018 onward), they faced frequent power cuts and load-shedding, failing to meet the legal condition of at least 20 hours of continuous supply required for trunk line billing. Despite this, the NEA retroactively demanded payments for that period.
The entrepreneurs had also submitted complaints to the “Outstanding Tariff Review Committee,” seeking justice. However, after Kulman Ghising became the Energy Minister, the NEA board, in a meeting on October 10, dissolved the committee entirely, effectively blocking the industries’ legal path to appeal.
Feeling deprived of justice, the affected entrepreneurs submitted a memorandum to Prime Minister Sushila Karki, stating they would rather shut down their factories than pay for power they never used. On October 12, NEA issued a 21-day notice demanding settlement of outstanding dues, further intensifying the dispute.
Industries Warn of Shutdown and Job Losses
Entrepreneurs allege that the NEA’s decision is driven by ego and bad faith, particularly targeting industries in the Butwal–Bhairahawa corridor. “We never demanded or consumed trunk line electricity — if NEA can prove we did, we will pay. Otherwise, we should not be penalized for their administrative mistakes,” said Sahu, accusing former Executive Director Kulman Ghising of making the corridor’s industries “victims of his ego.”
They argue that the NEA is trying to portray them as defaulters despite having followed all rules and paid regular dues. “Paying for unused electricity would wrongly prove us guilty in the eyes of the public,” Sahu added.
Previously, under the government of KP Sharma Oli, a review mechanism had been formed allowing industries to appeal with a 5% security deposit. However, with the recent dissolution of the review committee, industries now see no fair resolution in sight.
Industrialists like SR Foods Director Suman Bhusal claim that the NEA lacks any “Time of Day (TOD)” meter records to prove long-hour electricity usage — the legal basis for trunk line billing. Similarly, Siddhartha Chamber of Commerce President Netra Acharya warned that if forced payments continue, around 15 industries could permanently shut down, putting 20,000–25,000 workers out of jobs.
Acharya further cautioned that such forced recovery attempts would not only cripple local industries but also harm Nepal’s entire economy, especially amid a business climate already weakened by the Gen Z movement and reduced investor confidence.
