CERC reduces LPS rate payable by discoms

In line with the MoP’s directions, the Central Electricity Regulatory Commission (CERC) has reduced the rate for late payment surcharge (LPS) payable by discoms to power generators from 1.5 per cent per month to 1 per cent per month, if the due date falls between March 24, 2020 and June 30, 2020. For projects where the tariff is determined through competitive bidding, relief on the LPS delayed for more than 45 days (falling from March 24, 2020, to June 20, 2020) can be claimed under the “force majeure” provision of the power purchase agreements (PPAs). The move is expected to help discoms, which are unable to continue meter reading exercises and collect payments from consumers amid the lockdown.

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