The Ministry of Power (MoP) has issued the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. As per these rules, total dues owed by distribution companies (discoms) to generation and transmission companies can be paid in equated monthly installments (EMIs).
Further, total dues including late payment surcharge (LPS) up to the date of notification of these rules will be rescheduled and the due dates will be redetermined for payment by a discom in EMIs. Furthermore, discoms with over Rs 100 billion of dues can clear them in a maximum of 48 EMIs while the ones in the range of Rs 40-100 billion can be cleared at a maximum of 40 months. The discoms with dues of Rs 20-40 billion, Rs 10-20 billion and discoms owing up to Rs 5.01-10 billion will have a maximum of 34 months, 28 months and 20 months respectively. Meanwhile, discoms with less than Rs 5 billion will have a maximum of 12 months to settle their dues. The rules are applicable to outstanding dues of gencos, inter-state transmission licensees, and electricity trading licensees. LPS will be payable on the payment outstanding after the due date at the base rate applicable for the first month of default. The rate of LPS will increase by 0.5 per cent for every successive month of delay, provided that the LPS will not exceed 3 per cent higher than the base rate at any time.
Click here to download the rules