The Ministry of Power on 3rd June 2022, has published the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 which shall be applicable to outstanding dues of generating companies inter-state transmission licensees and electricity trading licensees.
As per the rule, 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. The rate of Late Payment Surcharge for the successive months of default shall increase by 0.5 per. cent for every month of delay provided that the Late Payment Surcharge shall not be more than three per. cent higher than the base rate at anytime:
Provided that the rate, at which Late Payment Surcharge shall be payable, shall not be higher than the rate of Late Payment Surcharge specified in the agreement, if any.
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.
A distribution licensee or other user of transmission system, as the case may be, shall maintain unconditional, irrevocable and adequate payment security mechanism. In case of non-maintenance of payment security mechanism generating companies, electricity trading licensees and transmission licensees shall regulate power supply to the distribution licensee in accordance with these rules.
