MoP proposes amendments to Electricity Late Payment Surcharge Rules

The Ministry of Power (MoP) has circulated the draft Electricity (Late Payment Surcharge) Amendment Rules, 2021 to reduce the burden of the distribution licensee.

According to the draft amendment rules, the power generation companies will have an option to sell power to third party and recover their cost. This will help to reduce the fixed cost burden of the distribution licensees. In addition, 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 will be first adjusted towards late payment surcharge and thereafter, towards monthly charges, starting from the longest overdue bill.

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