28th September 2025, Kathmandu
The Nepal Electricity Authority (NEA) has initiated a rigorous campaign to recover significant outstanding payments from its large-scale power consumers who receive electricity through dedicated and trunk lines.
NEA Issues Ultimatum
The Nepal Electricity Authority (NEA) has initiated a rigorous campaign to recover significant outstanding payments from its large-scale power consumers who receive electricity through dedicated and trunk lines. This renewed drive is spearheaded by the newly appointed Energy Minister Kulman Ghising, who has made the settlement of these long-disputed dues a top administrative priority.
The Ultimatum and Warning
In an official notice from its Distribution and Consumer Services Directorate, the NEA has given all industrial and commercial customers with pending payments a strict deadline of 21 days to clear their accounts. The directive clearly warns that failure to comply within this period will result in severe penalties, including potential service disruptions or disconnections.
This firm stance underscores the NEA’s commitment to reinforcing financial accountability and discipline within the energy sector, which is critical for its cash flow, infrastructure upgrades, and investment in new hydropower projects. Unpaid bills from high-volume users have long been a bottleneck, impacting the authority’s overall financial health and the quality of service for all users.
Flexible Payment Solution: The Installment Plan
Recognizing the substantial financial burden these long-standing arrears represent for businesses, the NEA has concurrently introduced a flexible payment solution. Customers facing difficulties in making an immediate full payment are now offered an installment facility, allowing them to clear their outstanding balance over a period of up to 28 months.
This move is a strategic effort by the NEA to balance the need for revenue recovery with an understanding of the financial realities faced by companies in the industrial and commercial sectors. By providing a manageable monthly payment plan, the NEA aims to encourage compliance and secure the outstanding revenue without forcing immediate, massive financial strain or completely disrupting the operations of key industries. Customers wishing to utilize this option are required to contact the Distribution and Consumer Services Directorate to set up their tailored payment schedule.
Kulman Ghising’s Renewed Focus on Accountability
The initiative to clear dedicated and trunk line arrears has gained significant momentum with the return of Kulman Ghising to a key leadership role, now as the Minister for Energy, Water Resources, and Irrigation. This issue was a central point of contention during his previous tenure as NEA’s Executive Director, where his attempts to collect the dues often led to disputes and government intervention.
His immediate prioritization of this matter as a Minister signals a strong, renewed push to enforce payment obligations on high-volume power consumers. The total amount of disputed dues related to the premium tariffs charged for uninterrupted power supply during the load-shedding era (particularly between 2015 and 2018) remains a contentious issue, with figures varying but generally running into billions of rupees. By ordering the immediate collection of these dues, Ghising is sending a clear message about the need for accountability to ensure the sustainability of Nepal’s power sector.
The Dedicated and Trunk Line Context
Dedicated and trunk lines are special, high-capacity electrical connections provided to large industries, factories, and commercial centers that demand a highly stable and continuous power supply. These services typically come with higher tariffs—often premium rates were applied during Nepal’s load-shedding periods—due to the infrastructure investment required to ensure their uninterrupted operation.
While businesses appreciate the stable supply, the disagreement over the billing, particularly the premium charges applied during the period when some industries claimed they were still affected by load-shedding, has kept the dispute unresolved for years. The NEA’s current action aims to finally close this chapter, utilizing the threat of disconnection alongside the option of a long-term installment plan to maximize recovery and financial discipline.
The collaboration of the strict 21-day ultimatum with the 28-month installment facility is a calculated move designed to achieve two critical objectives: a rapid response to the payment demand and a long-term pathway for industries to regularize their financial standing with the NEA. This recovery drive is deemed crucial for the overall financial stability and development trajectory of Nepal’s national electricity infrastructure.
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