Wednesday, May 8, 2019

Industrialists, businessmen deny paying extra power bill


Kathmandu, May 7: Industrialists and businesspersons have denied paying additional billing for electricity they used a couple of years ago.

Nepal Electricity Authority had sent the additional bills along with letters to at least 240 large and medium enterprises across the country demanding the due of the electricity they used from the trunk line or dedicated feeder line in the last couple of years. The electricity from the trunk line or dedicated feeder costs about 70 per cent more than the regular price.

"But, according to the Electricity Tariff Bylaws, 2016, the consumers of the electricity from the trunk or dedicated feeder need not to pay the additional tariff just being connected to the special supply line. Additional tariffs needed to be charged if there is a load shedding of at least 6 hours and uninterrupted energy was supplied to the industry for more than 20 hours," said Immediate Past President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

Three private sector business associations – FNCCI, Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) jointly organised a press meet to express their grievances and plight to the media.

They said that as the electricity sector regulator did not try to resolve the issue but continue to threaten the entrepreneurs with 'letter bomb', they were forced to come to the media as the last resort.
"Industries that never asked for dedicated feeder are also being charged with additional tariff. Bills are being sent to those who are not using the dedicated lines or even applied for it. This is injustice," said Bhawani Rana, President of FNCCI.

Cement and steel industries, star hotels and other large-scale industries are confronting problems due to new provisions.

Businessmen said that the total due amount could reach as high as Rs. 8 billion.
"It is enough to kill a substantial number of industries," They said.

There is a fear that the NEA can cut electricity supply if the due is not cleared within a week, said Satish Kumar More, President of CNI.

Senior Vice-President of the NCC Rajendra Malla said that NEA's intentions were wrong and stated that such obstacles could discourage foreign as well as domestic investors.

Industrialists claimed that they had no backlog of electricity bills. "We have been timely paying the electricity bills and many of us are getting the discount facility for the timely payment. So, the demand of additional payment now is illegal," read a joint press statement issued by the three business associations.

Industrialists have been paying the regular tariff of electricity but the new bills and letters have been sent for the additional 67 per cent tariff charged for the electricity from the trunk line or dedicated feeder.

The statement also said that it was irrational to charge additional monthly tariff, demand fee and energy fee when the country had been declared load shedding-free last year.

Meanwhile, court has issued an interim order that the industries that were not supplied with the electricity from the trunk line or dedicated feeder as per the government rules should not be charged with the additional charges.

Published in The Rising Nepal daily on 8 May 2019. 

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