The Ministry of Power vide its notification dated 8th October 2020 has issued the Draft (Late Payment Surcharge Electricity Rules, 2020, to reduce the extremely high rates of late payment surcharge.
Late payment surcharge will be applicable on the payments outstanding after the due date at the applicable bank rate for supply or transmission of power. The rate at which late payment surcharge is applicable payable on outstanding amount shall increase by 50 basis points each month after the expiry of the first month, subject to a maximum of applicable bank rate plus 200 basis points.
However, the rate shall not be higher than the rate provided in the agreement for transmission of power. All payments by a distribution company to a transmission company will be adjusted first towards late payment surcharge and then monthly charge.
The Ministry has invited comments and suggestions on the draft from the public if any, which shall be forwarded to the Ministry within 21 days from the date of this letter by October 29, 2020. The comments may also be emailed to sandeep.naik68@gov.in and debranjan.chattopadhyay@nic.in.
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