Nepal Electricity Authority (NEA) Executive Director Kulman Ghising has submitted a response to the Ministry of Energy’s call for a clarification within 24 hours.

This is the fourth time the ministry asked Ghising to clarify on various issues, a manifestation of the ongoing conflict between Minister for Energy, Water Resources and Irrigation Dipak Khadka and the NEA chief.

The ministry on Tuesday sought an explanation from Ghising. He was asked why he should not be removed from his position for insubordination.

In his five-page clarification submitted to the ministry on Thursday, Ghising defended his position in two parts. The first argues why the ministry cannot expel him, while the second concerns his participation in meetings with Indian officials in New Delhi.

Ghising has also questioned the legal basis of the ministry’s repeated interrogations, and challenged its authority to seek such clarification.

In his response, Ghising has argued that since he was appointed by the Council of Ministers on August 9, 2021 in accordance with the Section 17(1) of Nepal Electricity Authority Act-1984, only the Council of Ministers can seek clarification and remove him. He claimed the ministry doesn’t have such authority. Ghising cited different laws to support his argument.

However, Suresh Acharya, the energy secretary at the ministry, said Ghising has signed a work performance contract with the secretary [Acharya] of the ministry. Hence, the ministry can expel him if needed, he said.

The ministry’s latest query of Ghising mainly focused on the NEA chief’s involvement in signing a bilateral energy trade agreement between Nepal and India on February 12. The ministry accused Ghising of signing a power trade deal with India in a way that would increase the per unit price without prior approval from the ministry.

Minister Khadka also raised questions over Ghising’s authority to enter into such contracts. He questioned how Ghising could sign such an agreement without the approval of relevant ministers and also asked about the financial implications of the deal.

The 16th meeting of the Nepal-India Power Exchange Committee (PEC) in New Delhi from February 11 to 12 had fixed the per unit price of electricity imported or exported between the two countries.

NEA chief Ghising and Ashok Kumar Rajput, a Power System Member of India's Central Electricity Authority, co-chaired the meeting.

In his clarification, Ghising said the per unit price in peak hours costs IRs 10 on the Indian Energy Exchange, but the price [IRs 8.1] agreed in the latest deal is cheaper.

“In earlier years, the price of electricity used to increase by an average of 5.5 percent annually based on inflation, but this year, we agreed to increase it by just 1.5 percent,” the clarification statement reads. “This is the lowest increment so far.”

But Acharya, the energy secretary at the ministry, said the price of electricity is a secondary concern. Ghising breached the protocol by not getting a permit from the ministry before signing the agreement.

“Ghising inked an agreement with his Indian counterparts without the Cabinet’s approval of his India visit,” Acharya said. “We will take action against him based on his clarification.”

Acharya did not elaborate when and what action would be taken against Ghising.

As the minister and the NEA chief lock horns, leaders of the ruling parties stand divided over whether Ghising should be sacked. Even the Minister of State for Energy Purna Bahadur Tamang is against Minister Khadka’s attempt to sack Ghising despite both Khadka and Tamang coming from the same party, the Nepali Congress. Also, some other leaders from the ruling party have stood against the idea of sacking Ghising, arguing that such a move would backfire on the party and the government given his popularity.

“The government will not expel Ghising even though some people are against him,” Minister of State for Energy Tamang told the Post. “He has done nothing wrong to be expelled.”

Minister Khadka asked Ghising to furnish details about his international and domestic travels, including details of leaves. He has answered the questions.

“After the formation of this government, to date, I have travelled 14 times inside the country and two times abroad,” the clarification letter reads. “I have gone on on-site visits to various places with permission, but the expenses for the travel orders approved by the minister have not been reimbursed yet.”

The trips during the months of Bhadra and Asoj [mid August-mid October] were approved by the minister but even other visits were made after giving prior information. “The applications for the approval of the visits were duly submitted but they remain pending,” Ghising has said in the clarification. “Now it is clear that the visits were not approved in order to create a ground to ask for this clarification.”

Meanwhile, an official at the NEA said that the dispute within the ministry has created an awkward situation whereby the NEA officials now are at a loss about how to talk to their Indian counterparts.

“We convinced our Indian counterparts to sell electricity at cheaper rates only after tough negotiations,” the official argued. But with the government questioning the decision, the official argued it might be difficult for them to negotiate in days to come.

“When the government asks questions of one of its agencies that reached an agreement with a foreign entity, the latter might hesitate to collaborate with us, arguing that our government may not approve the agreements reached with the NEA,” the official said on the condition of anonymity.