In a move aimed at facilitating consumers facing arrears on dedicated and trunk lines, the Electricity Authority of Nepal has introduced a new policy allowing discounted billing over a maximum of 60 installments. The decision was made during a recent meeting of the Authority's Board of Directors under the chairmanship of Shakti Bahadur Basnet, the Minister of Energy, Water Resources, and Irrigation.

Installment Payment Arrangement:

Consumers utilizing electricity from dedicated and trunk lines can now settle their outstanding payments through a structured installment plan. The Board has extended this arrangement for a period equivalent to the number of months for which the discount bill is issued, capped at a maximum of 60 months. This initiative aims to provide financial relief to consumers and streamline the payment process.

Background and Regulatory Measures:

Previously, during periods of load shedding, the Nepal Electricity Authority faced challenges in collecting electricity tariffs from industrial, commercial, and non-commercial customers connected to dedicated feeders and trunk lines. Despite repeated notices and public appeals for payment, some consumers resisted paying the electricity tariffs, prompting the Authority to enforce disconnections.

Outstanding Amounts and Disconnecting Strategy:

As of December 2023(Push 2080 Nepali Calendar), the total outstanding amount owed by 61 consumers relying on dedicated and trunk lines reached a staggering 24 billion rupees. The Authority had already cut off the electricity lines of 23 industries with debts exceeding five crore rupees, as part of its strategy to gradually disconnect lines for consumers in arrears. This proactive approach aims to ensure fair and timely payment of outstanding dues.

Himal Iron Sets an Example:

Among the notable industries affected, Himal Iron and Steel, operating in Parwanipur under the Bara-Parsa Industrial Corridor, took the lead in complying with the new arrangement. Having faced a disconnection of its electricity line on Friday, the industry promptly paid the first installment of dues, amounting to an undisclosed sum.

Deputy Executive Director Manoj Silwal of the Nepal Electricity Authority's Distribution and Customer Service Directorate confirmed that Himal Iron and Steel's electricity line was reconnected at 9:30 PM after the initial payment. The industry is committed to clearing its outstanding amount in 36 installments, setting a positive precedent for others facing similar challenges.

The Nepal Electricity Authority's decision to allow installment payments for dedicated line arrears reflects a proactive approach to address challenges faced by consumers while ensuring the sustainability of the electricity supply system. The move not only provides financial flexibility to consumers but also emphasizes the importance of timely payments to maintain the integrity of the electrical infrastructure in the country.