MoP issues draft electricity (late payment surcharge) rules 2020

The Ministry of Power (MoP) has issued draft electricity (late payment surcharge) rules 2020. According to the ministry, the rules have been drafted in view of the current low rates of interest prevailing so that the rates of LPS reflect the current cost of borrowing. …

According to the draft rules, late payment surcharge shall be payable on the payments outstanding after the due date at the applicable bank rate or the rate as provided in the agreement for supply or transmission of power, if any, whichever is lower. The rate at which late payment surcharge shall be on the outstanding payments shall increase by 50 basis points each month after the expiry of the first month after the due date, subject to a maximum of applicable bank rate plus 200 basis points.

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