The Ministry of Power vide its notification dated 22nd February 2021 has published the Electricity (Late Payment Surcharge) Rules, 2021 which shall be applicable for payments to be made in pursuance of Power Purchase Agreements, Power Supply Agreements, and Transmission Service Agreements, in which tariff is determined under section 62 of the Act; and such Power Purchase Agreements, Power Supply Agreements and Transmission Service Agreements that become effective after these rules come into force, in which tariff is determined under section 63 of the Act.
The Late Payment Surcharge shall be payable on the payment outstanding after the due date at the base rate of Late Payment Surcharge applicable for the period for the first month of default and the rate of Late Payment Surcharge for the successive months of default shall increase by 0.5 percent for every month of delay provided that the Late Payment Surcharge shall not be more than 3 percent higher than the base rate at any time.
All payments by a distribution licensee to a generating company or a trading licensee for power procured from it or by a user of a transmission system to a transmission licensee shall be first adjusted towards Late Payment Surcharge and thereafter, towards monthly charges, starting from the longest overdue bill.
