KATHMANDU: The escalating standoff between the Nepal Government and Kulman Ghising, the Managing Director of the Nepal Electricity Authority (NEA), is approaching a critical juncture. Tensions have been simmering for months between Prime Minister KP Sharma Oli, Energy Minister Dipak Khadka, and Ghising, with the government now making a concerted effort to remove him from his post. According to high-level sources, the government is in the final stages of this decision, with a resolution likely to come as soon as tomorrow (Monday) or within the next few days.
Ghising, widely credited with rescuing Nepal’s electricity sector from crisis, has been lauded for his leadership in tackling the debilitating load-shedding that long plagued the country. Under his leadership, NEA has shed its previous reputation for inefficiency, significantly reducing power outages and restoring public trust in the institution. However, the government’s discomfort with Ghising stems from his perceived insubordination toward the Ministry of Energy, his strained relationship with both Prime Minister Oli and Minister Khadka, and his increasingly confrontational stance. While Ghising’s successes have won him public praise and support from opposition parties, his growing rift with the ruling administration has set the stage for a potential ousting.
A major dispute has erupted between the government and Nepal Electricity Authority (NEA) Managing Director Kul Man Ghising over the controversial Dedicated and Trunk Line tariffs. While the government seeks a resolution, Ghising has not complied with its efforts to address the issue. The dispute intensified after NEA cut power to several major industries, prompting business leaders to approach Prime Minister Pushpa Kamal Dahal for intervention. Despite the government’s instructions, Ghising insists that any resolution must come through a cabinet decision.
Businessmen have sharply criticized the NEA for its handling of electricity bills, which they argue are vague and arbitrary. The bills, they claim, fail to detail electricity consumption, specific usage hours, or the number of units consumed, making them difficult to validate. The lack of transparency has fueled dissatisfaction among business owners, who are calling for the implementation of the Girish Chandra Lal Commission’s report, which has already been published and recommends the formation of a committee to address outstanding amounts. In response, the NEA has reiterated that its billing practices are based on legal evidence and sufficient documentation.
The friction between Kulman Ghising, Managing Director of the Nepal Electricity Authority (NEA), and the government has intensified since the formation of the new coalition government led by CPN-UML Chairman KP Sharma Oli. Publicly, the government has accused Ghising of failing to comply with its directives, with Energy Minister Dipak Khadka claiming that Ghising has disregarded the Ministry’s instructions. Ghising, however, has been steadfast in his defiance, asserting that he is only accountable to the NEA and that the Ministry of Energy, Water Resources, and Irrigation lacks the legal authority to issue such demands.
The government’s escalating criticism has brought Ghising’s future into question, with a decision on his potential removal expected in the coming days. Over the past several months, Ghising has been asked for explanations on three separate occasions, with the latest request calling for a 24-hour clarification on why he should not be dismissed, given his ongoing refusal to comply with government orders. Ghising, however, has responded with characteristic resolve, pointing out that the Ministry has not acted on his previous clarifications, notably one submitted in January.
The Nepal Electricity Authority (NEA) is facing scrutiny from government over its unilateral decision to sign an agreement with India to increase electricity import tariffs. The new tariffs—1.5 percent for 132 kV and 1.65 percent for 33 kV—were agreed upon at the 16th Bilateral Power Exchange Committee meeting in New Delhi on February 12, 2024. However, the agreement was signed without prior approval from the Ministry of Finance or the Ministry of Energy. Additionally, Kulman Ghising, NEA’s Managing Director, allegedly failed to inform the government about the agreement for 12 days after it was signed.
In January, Energy Minister Deepak Khadka sent a nine-point request to Ghising, seeking clarification. Ghising responded on January 12, but Minister Khadka deemed the response unsatisfactory.
One of the key points raised in the letter addressed the lack of performance evaluation details. Point 9 states, “Since you have not submitted the performance evaluation details as per the performance agreement that you are required to submit, your performance cannot be evaluated properly. You have admitted the issue of not submitting the details in your letter dated November 19, 2024, and have stated that you will provide ‘performance details in the prescribed format as soon as possible in coordination with the Ministry.’ Therefore, your performance cannot be evaluated as per Section 10.3 of the said agreement. Why not terminate your appointment as per the same section?”
On October 29, 2024, the Ministry of Energy, under Minister Khadka’s leadership, sent a letter to Ghising requesting clarification on six points related to a decision made at the secretary level. This followed a previous 15-point request on October 9. The ministry raised concerns about Ghising’s delayed responses to earlier requests for clarification. Ghising explained that the delays were due to his need to obtain documents from the authority’s provincial offices, and the Dashain celebrations had further delayed the process. In response, Minister Khadka granted Ghising an additional 15 days to provide the necessary clarifications.
The scrutiny also follows a decision made by the NEA’s Board of Directors on July 21, 2024, chaired by Minister Khadka, which instructed Ghising to ensure industries clear their arrears. Despite this, Ghising ordered the disconnection of electricity supply to 34 industries on October 24, 2024, due to their failure to pay outstanding dues. Ghising cited a lack of proof regarding the necessity to pay, while Minister Khadka opposed the decision to disconnect power to the industries.
The growing conflict between Kulman Ghising and the government has escalated from street protests and social media campaigns to fiery parliamentary debates and rival mobilizations. As both Ghising and government factions rally their supporters, the dispute intensifies on the ground. Amid these tensions, private sector experts continue to back Kulman, emphasizing his critical role in the nation’s energy sector. The issue of Ghising’s potential removal has gained significant attention, sparking discussions across social media, public spaces, and in parliament. Despite the mounting pressure, Minister Deepak Khadka had previously hesitated to take direct action, likely due to the need for support from top government leaders. However, according to high-level sources, he is now determined to take action within the week.
Nepal News inquired with Minister of Energy, Water Resources, and Irrigation Deepak Khadka about the potential removal of Kulman Ghising, he stated, “I have had many meetings and discussions with him. The same issue has been ongoing for ten years. He should not have cut the line of industries as soon as we came in. There are different ways to collect taxes. Industrialists are in one position, and he is in his own position. He says the bill he sent is correct. Why has this problem of industrialists not being ready to pay existed since his tenure?” He went on to say, “Are you trying to solve it? If you are trying to discooperate with the government, then you are doing wrong. We are waiting for his response.”
Meanwhile, Kulman Ghising has strongly criticized Energy Minister Khadka, who had previously demanded a 24-hour explanation. In a statement issued on Thursday, Ghising argued that the Energy Minister does not have the authority to demand an explanation with the intention of removing him. “According to the Nepal Electricity Authority Act, 2041, I was appointed by the Council of Ministers for a period of 4 years. The ministry does not have the right to remove me. The very issue of the ministry asking for an explanation is procedurally flawed, unauthorized, and biased,” he stated.
Speaking with Nepal News, energy expert and economic analyst Arun Kumar Subedi expressed support for both the government and Kulman Ghising. Subedi stated, “Kulman Ghising should work in the interest of the government and the country. If we end load shedding by importing electricity from India, how can the government work if the total amount is not shown to the NEA and the Power Purchase Agreement (PPA) is not signed?” He further emphasized, “The NEA should issue circular bills with Time of Day (TOD) meters to the industrialists. The industrialists should also pay for it with TOD meters. The government should not adopt a policy of non-cooperation.”
Private energy developers argue that the construction of hydropower projects has been hindered due to the ongoing issue surrounding Kulman Ghising’s potential removal. The NEA board meeting has not been held for the past two and a half months, despite its crucial role in advancing key projects.
The chairman of the NEA board is Energy Minister Deepak Khadka, and the tension between Khadka and Kulman Ghising is impacting the entire energy sector policy level decision. Prakash Dulal, Deputy Secretary-General of the Independent Power Producers Association of Nepal (IPPAN), told Nepal News that the delay in holding the board meeting is stalling vital developments in the energy sector. “The board meeting of the NEA has not been held for the past two and a half months. This has also stalled work on the ‘collection agreement,’ new generation license processes, PPA approvals, etc. It should apply for new generation licenses for projects that have completed five years of construction. For that, there is a provision that the EIA, including the PPA, should be approved. This has created a problem for the entire energy sector.”
Speaking to Nepal News, Rajesh Kumar Agrawal, president of the Confederation of Nepalese Industries (CNI), stated that he had heard industrialists were willing to pay the dues in line with the Lal Commission’s report. However, he admitted to not being well-informed on the matter.
“I don’t have much information about this issue either. They must be working at their respective ‘levels.’ It seems that the proposal to pay as per the Lal Commission’s report has been raised,” he said. “The industrialists remain firm on their earlier stance. However, we strongly wish for this issue to be resolved promptly.”
Who is Kulman Ghising and How Did He Become Popular?
Kulman Ghising was appointed the Managing Director of the Nepal Electricity Authority (NEA) on 14 September 2016, marking a turning point in the Nepal’s energy sector. Under his leadership, Kathmandu started receiving 24-hour power supply. He achieved this by reducing the power supplied to heavy industrial consumers during peak demand by four hours and redistributing that power to the public. Prior to his appointment, Ghising served as the project chief of the Rahughat Hydroelectricity Project and was the managing director of the Chilime Hydropower Company.
Ghising’s appointment came at a time when Nepal was experiencing severe power shortages, with up to 18 hours of load shedding daily. Janardan Sharma, the Energy Minister from the Maoist party at the time, selected Ghising for the role and supported his hardline approach to end the load shedding. With the backing of Prime Minister Pushpa Kamal Dahal, Sharma sought to eliminate the power crisis as a means of improving the party’s credibility. Sharma publicly accused the previous NEA management of “leaking” electricity and even set up a committee to investigate it.
Within months of assuming office, Ghising brought an end to load shedding. His approach was simple yet effective: he reduced system losses and increased power supply. One of his early challenges occurred on October 30, 2016, during Laxmi Puja, when demand for electricity surged as households lit up their homes. Despite the challenge, Ghising’s team successfully supplied 340 megawatts of power to Kathmandu Valley alone. Ghising spent hours at the load dispatch center in Syuchatar, Kathmandu, and returned home past midnight, missing out on the family’s Laxmi Puja rituals. Following this success, Ghising’s main task was to sustain the momentum.
Ghising made further strides by reducing the number of dedicated feeders from 183 to 40. He emphasized the equal distribution of power to industries and proper demand-supply management. What he did not openly discuss was the difficulty in overcoming the entrenched corruption within the NEA and the political protection given to officials receiving kickbacks. Under Ghising’s tenure, Nepal also benefited from 80 MW of power from India following the connection of the Dhalkebar-Muzaffarpur transmission line to the national grid. Additionally, power generation increased with the addition of the Upper Marsyangdi A (25 MW) and 50 MW from smaller power producers.
Before Ghising’s appointment, the NEA had struggled to replace more than 200 transformers that exploded during the Indian blockade of 2015. The blockade had led many households to switch to induction stoves, putting additional strain on the power grid. Substations across the country were streamlined to manage load better, and the country saw a reduction in the use of power-consuming diesel-powered inverters.
When Ghising took over, NEA’s losses stood at NPR 9 billion. However, under his leadership, the NEA has been generating profits. In recent years, the NEA reported a profit of NPR 11.36 billion in just six months, generating NPR 53.18 billion from electricity sales. In total, the NEA earned NPR 70.44 billion from electricity sales and other sources while spending NPR 59.08 billion on electricity purchases and administrative costs.
Ghising was reappointed for a second term on 11 August 2021, after accumulating over three and a half decades of experience with the NEA, from a seventh-level engineer to its managing director. His success in providing uninterrupted electricity earned him the title of “Light Man” and made him a beloved public figure. Ruling leaders are reportedly wary of Ghising’s popularity, particularly if he decides to enter politics. The successor to Ghising at the NEA will face intense public scrutiny, and his “can-do” attitude may have a lasting impact, potentially extending to politics.
Many people in Nepal see Kulman Ghising as a beacon of hope, especially those who had long endured daily power shortages. Born to an ordinary farmer in Bethan village, Ramechhap, Ghising grew up with limited resources. He recalls studying by the dim light of a traditional oil lamp in his childhood home. At the age of seven, he began attending primary school, which was half an hour’s walk from his home. Later, he moved to Kathmandu, where he enrolled in Grade 7 at Bal Sewa Secondary School in Jhochhe. He completed his SLC from Amar Adarsh Secondary School and his Intermediate Science degree from Amrit Science Campus.
Ghising’s higher education journey took him to India, where he received a scholarship from the Regional Institute of Technology in Jamshedpur. He pursued a B.Sc. in Electrical Engineering, graduating in 1994, followed by a Master’s degree in Power System Engineering from Nepal in 2003. He also earned an Executive MBA from the ACE Institute of Management in 2011. Ghising’s educational and professional journey reflects his determination and commitment to improving Nepal’s energy sector.
Will the new committee resolve the issues by implementing the Lal Commission report effectively?
On November 10, Nepal’s Council of Ministers formed a three-member committee to address the ongoing electricity tariff dispute, focusing on unpaid bills. Chaired by Prof. Dr. Arvind Kumar Mishra of the National College of Engineering in Lalitpur, the committee also includes Chartered Accountants Sujan Kumar Kafle and Shriramraj Pandey. Energy Minister Dipak Khadka reaffirmed the government’s commitment to resolving the issue fairly, balancing the interests of the Nepal Electricity Authority (NEA) and industrial users.
The task force has been created after multiple failed attempts by the government to resolve the dispute. It will examine bills issued by the NEA for industries using dedicated feeders and trunk lines, particularly questioning whether the bills align with Time of Day (ToD) meter calculations. The committee will review the Lal Commission’s report and assess whether the bills were issued accurately. However, the task force has faced delays due to a lack of cooperation from NEA Executive Director Kulman Ghising, with industrialists accusing the Authority of sending outdated bill details that do not reflect the government’s decisions.
While Ghising maintains that the bills are consistent with ToD meter standards, the dispute continues. The committee’s primary task is to accurately calculate outstanding electricity dues from January 2016 to January 2019, conducting both technical and administrative investigations. The Ministry of Energy expects the committee’s findings to provide clarity on the total dues and facilitate the implementation of a transparent resolution.
This effort follows the work of an earlier inquiry commission led by former Supreme Court Justice Girish Chandra Lal, which submitted its report on May 5, 2024, after being formed in November 2023 to investigate the dispute.
What the Lal Commission Report Says on Resolving the Electricity Tariff Dispute?
The Nepal government has published the report by an inquiry commission led by former Supreme Court Justice Girish Chandra Lal, aiming to resolve long-standing disputes over electricity tariffs for customers using dedicated feeders and trunk lines. Formed in January 2024, the commission was tasked with addressing billing conflicts that arose during Nepal’s peak load-shedding years from 2016 to 2018.
The Ministry of Energy, Water Resources, and Irrigation made the findings public last week, detailing recommendations on how arrears should be calculated and collected. The report outlines the purpose and definition of dedicated feeders and trunk lines, which were established to provide uninterrupted electricity to industrial and public users during load-shedding, often at a premium of up to 65%.
The commission proposed that outstanding arrears be calculated using Time of Day (ToD) meters, which track electricity usage based on specific time periods. It categorized usage into three distinct phases—July to December 2015, January 2016 to April 2018, and May 2018 to 2022—with the most contentious period identified as January 2016 to April 2018. Arrears from this timeframe will be calculated separately, while earlier dues will be addressed in line with court rulings.
Energy Minister Deepak Khadka said the recommendations would be implemented immediately. Industries with outstanding payments must settle dues within 15 days, and power to compliant users will be restored within 24 hours, he said. The Nepal Electricity Authority (NEA) will determine the method for retrieving arrears but will avoid cutting electricity supplies, a move the government deemed impractical.
The Lal Commission’s findings come after years of disputes over billing practices tied to dedicated feeders and trunk lines. Energy Secretary Suresh Acharya said the report provides a clear framework for resolving the issue while ensuring fairness and legal compliance. The commission’s recommendations are expected to help streamline the recovery of arrears, rebuild trust with industrial users, and enhance the efficiency of the NEA.
