Nepal PM Oli Faces Criticism Over Decision to Restore Power to Defaulting Businesses

Introduction

In a controversial move, Nepal’s Prime Minister K.P. Oli has directed the Nepal Electricity Authority (NEA) to restore electricity to 34 business establishments, despite their outstanding dues to the authority. The businesses reportedly owe around 28 billion Nepali rupees (approximately USD 210 million) due to unpaid bills from prolonged power usage. This decision has sparked intense debate in Nepal, with members of both the ruling and opposition parties questioning the ethics and legality of the move.

Background of the Dispute

The dispute between the NEA and the 34 businesses centers on their use of uninterrupted electricity during a period of severe load shedding in Nepal. From February 1972 to April 1975, when the country experienced up to 18 hours of daily power cuts, these industries continued using round-the-clock power, amassing massive debts. The NEA’s Executive Director, Kulman Ghising, has refused to restore power without official written instructions, viewing this as a serious financial and regulatory breach.

Oli's Intervention and the Cabinet’s Directive

Prime Minister Oli’s intervention involved a formal cabinet decision instructing the NEA to restore power to the defaulters within 24 hours. By involving the cabinet, Oli’s administration has ensured the directive is treated as a policy decision, which means it is shielded from scrutiny by Nepal’s anti-corruption bodies.

This action has not been without controversy. The opposition parties and even some members of Oli’s own ruling party have condemned the decision, labeling it as “corrupt” and an abuse of political power. Critics argue that restoring electricity without requiring payment sets a dangerous precedent for future cases and weakens regulatory enforcement.

Political Reactions and Public Outcry

The decision has ignited widespread criticism. Opponents argue that the move supports corporate interests at the expense of public accountability and financial responsibility. Many see it as a favor to influential business groups, allowing them to evade their financial obligations.

Several members of the ruling party have expressed dissatisfaction, describing the directive as a means to bypass standard anti-graft protocols. Members of the opposition have gone further, calling it a direct instance of “crony capitalism” that protects the elite while ignoring the needs of ordinary citizens who suffer from power outages and high energy costs.

Legal Concerns and Anti-Graft Issues

Oli’s government justifies the decision by pointing to a policy that allows cabinet decisions to override regulatory objections. Under Nepalese law, a cabinet decision is considered a policy directive and therefore is protected from interference or investigation by anti-corruption authorities.

Nevertheless, the opposition argues that this approach undermines the authority of regulatory bodies like the NEA and poses a risk to public finances. Many Nepalese citizens are now questioning whether these policy-based protections might encourage further abuses of power and shield corrupt practices.

Implications for Nepal's Power Sector

This controversy could have long-lasting impacts on Nepal’s energy sector. The NEA has made significant efforts to expand energy access and manage its resources responsibly. This decision, however, could weaken its authority to collect payments and enforce policies.

The Prime Minister’s directive also risks emboldening other defaulters, potentially leading to more non-payment issues, which could impact the financial stability of the NEA and reduce resources for infrastructure development and public service improvement.

Conclusion

Prime Minister Oli’s directive to restore electricity to defaulting businesses has raised significant ethical and legal questions in Nepal. While the decision aims to support businesses and economic stability, it has ignited public debate over corruption, political favoritism, and the role of government in business affairs. As opposition grows, this decision could become a flashpoint for discussions on governance, financial responsibility, and the independence of regulatory bodies in Nepal.

This situation is a reminder of the importance of transparency and accountability in governance, especially when it involves large financial interests. How this issue unfolds will reveal much about the priorities of Nepal's leadership and its commitment to fighting corruption.

Reference from :- https://indianexpress.com/article/world/nepal-pm-oli-asks-authority-to-restore-electricity-of-34-defaulters-businesses-faces-criticism-9665123/