Industrialists in Nepal are voicing their concerns over the Deducted Load (DL) and Truncated Line (TL) charges imposed by the Nepal Electricity Authority (NEA). These charges, which are levied on industries operating for just 4-5 hours a day and calculated on their electricity consumption during that period, are being criticized for their impact on costs and inefficiency.
The Unfair Burden of DL and TL Charges
During a press meet organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), industrialists argued that the current system unfairly charges them even when their factories are not in operation. They indicated that while some industries dutifully pay their dues, others are being penalized under the DL and TL system. This, they say, does not reflect the actual electricity usage and has led to legal challenges.
Operational Realities and Legal Battles
Industrialists are advocating for a change in this policy, asserting that it detrimentally impacts export-oriented industries, which are operating at only 30% capacity due to these additional charges. The NEA maintains that the charges are to manage the load during peak hours and ensure a fair distribution of electricity. Industrialists, however, feel the policy is punitive and dismissive of the operational realities of industries, which at times face power cuts despite paying these charges.
The Road Ahead
The dispute is currently under legal review, with industrialists calling for a resolution that is in line with their electricity usage patterns and operational needs. Amidst this backdrop, the FNCCI has proposed the formation of a high-level commission to address the ongoing conflict. They stress the need for both the government and private sector to collaboratively find a solution. As industries continue to grapple with power cuts and mounting costs, the resolution of this issue becomes increasingly critical for the future of Nepal’s industrial sector.