The Ministry of Power has published the draft Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules 2023. These draft rules were published on December 14, 2023.
The rules emphasize the importance of timely settlements and aim to establish a more accountable and efficient framework for the power supply chain.
The primary focus of these amendments is on instances where dues remain unpaid even after two and a half months from the presentation of the bill by the generating company or transmission licensee. In such cases, specific regulations will come into effect to ensure a fair and efficient power supply system. If a distribution licensee or another user fails to settle dues within the stipulated time, the power supply to the defaulting entity will face regulation.
The regulations include measures such as the regulation of short-term access or temporary General Network Access (GNA) for the sale and purchase of electricity through short-term contracts or power exchanges. The National Load Dispatch Centre may, under exceptional circumstances for grid security, temporarily review the regulation of short-term access or temporary GNA, provided reasons are recorded in writing.
If dues remain unpaid for three and a half months, in addition to the regulation of short-term access, medium-term open access, long-term access, or temporary GNA for the sale and purchase of electricity through contracts other than short-term contracts will be regulated by 10%. The reduction or withdrawal of access will be progressive, increasing by 10% for each month of default. Once outstanding dues are paid, the regulations will be lifted within two days.
To implement these rules effectively, the National Load Dispatch Centre will issue detailed procedures, ensuring a transparent and efficient process.
Another key aspect of the proposed amendments requires distribution licensees to initiate power requisition schedules at least two hours before the end of the time for placing proposals or bids in the day-ahead market. Failure to do so will prompt generating companies to offer un-requisitioned surplus power in the power exchange(s). The offered power should not exceed 120% of its determined or adopted energy charge by the appropriate commission. Failure to offer un-requisitioned surplus power will result in it not being considered available for computing the payment of fixed charges, ensuring that unutilized power is appropriately accounted for in the market.
These proposed amendments aim to create a more accountable and efficient electricity payment system, providing clear guidelines for addressing non-payment issues while maintaining a balance between the interests of generating companies and distribution licensees. The emphasis is on timely payments and securing the power supply chain for a robust and sustainable energy ecosystem.
