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Legal Central Ministry of Power Electricity Act, 2003

Electricity (Late Payment Surcharge) Rules, 2021

22-Feb-2021 | G.S.R. 128(E)

Ministry of Power has introduced Electricity (Late Payment Surcharge) Rules, 2021 regarding the late payment surcharge which will be paid by the distribution licensee to the Power generation company for Power Purchase Agreements, Power Supply Agreements, and Transmission Service Agreements. As per these Rules, the late payment surcharge will be payable on the outstanding payment after the due date at the base rate of late payment surcharge for the first month of the default. The late payment surcharge rate for the successive months will increase by 0.5% for every month of delay. The surcharge should not be higher than 3% of the base rate at any time. Further, the late payment surcharge will be paid at the rate, lower of the following: a. Rate as per these Rules; or b. Rate as per the agreement for purchase or transmission. The distribution licensee will be debarred from procuring power from a power exchange or grant of the short term open access till the bill is paid in case any payment including Late Payment Surcharge has been outstanding against a bill after the expiry of 7 months from the due date of the bill. These Rules also prescribe the sequence of adjustment against any payment made by the distribution licensee.

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