Summary:

• Context: Hitendra Dev Shakya was appointed Executive Director of Nepal Electricity Authority (NEA) on March 24, 2025, replacing Kulman Ghising. Despite receiving clear orders from the Energy Minister and the Electricity Regulatory Commission to recover billions of rupees in unpaid electricity dues from industrialists using dedicated trunk lines, Shakya has yet to take any significant action nearly three months later.

• Background: Kulman Ghising had pushed for recovery of dues and sought permission from the Electricity Regulatory Commission to disconnect power supply to factories that defaulted on payments. The commission formally instructed NEA on April 10 to start legal action against defaulters. However, by mid-June, no action had been taken according to NEA officials.

• Government Involvement: Minister Deepak Khadka directed Shakya to recover the outstanding dues immediately after his appointment. Despite this, progress remains minimal.

• Regulatory Changes: On April 11, NEA amended regulations allowing industrialists to apply for re-evaluation of their dues by depositing only 5% of outstanding dues as security (reduced from the statutory 25%). A Review Commission was formed to evaluate these applications; 46 industrialists applied, but the commission has yet to meet or make decisions.

• Disputes and Investigations: Earlier efforts to resolve tariff disputes involved forming committees and commissions, but some were annulled by the Supreme Court or delayed. The commission under Girish Chandra Lal recommended calculating tariffs based on electricity supply standards and timing.

• Financial Impact: Industrialists owe roughly Rs 8.25 billion (Rs 6.65 billion principal plus penalties), down from an initial estimate of Rs 22 billion due to adjustments based on recommendations.

• Current Status: Despite informal reports of partial payments by industrialists, no official written confirmation has been made by NEA or the Electricity Regulatory Commission.

Archive: https://archive.md/Do4Pn