Kulman Ghising warns to cut power to defaulting industries within 15 days

Kathmandu: Kulman Ghising, the Executive Director of the Nepal Electricity Authority (NEA), has warned that industries failing to clear their outstanding electricity bills within the next 15 days will have their power supply cut once again. Ghising stated that the NEA is taking action in accordance with the directive from the Government of Nepal to recover overdue payments.

“Following the government’s instruction, industries must pay their overdue bills within 15 days. If the payments are not made within this period, we will initiate our process once again,” Ghising said during a recent statement.

He added that if the arrears remain unsettled after the 15-day deadline, the responsibility will lie with the Government of Nepal and the Ministry of Energy. “We have been directed to reconnect power within 24 hours after a disconnection for non-payment. We are bound by this order, but the responsibility of recovering overdue payments now also rests with the government and the Ministry of Energy,” he explained.

Ghising emphasized that this is not the first time the NEA has had to disconnect power over unpaid bills. “In the past, three power cut operations were carried out based on government decisions, and the same process is being followed now,” he added.

He pointed out that the NEA is legally required to comply with the government’s instructions as per the Electricity Authority Act of 2041, which mandates following administrative decisions regarding disconnections and reconnections.

Ghising further warned that the NEA is at risk of financial collapse if defaulting industries do not clear their dues. “The NEA is currently facing a total of NPR 40 billion in overdue payments. If we are unable to collect NPR 10 billion each month, we will face severe cash flow issues,” he said.

In addition, Ghising expressed concerns over the reduced budget allocation from the government, which has impacted the NEA’s revenue generation. “The NEA’s revenue needs to increase, especially considering the government’s shrinking budget support,” he stated.