Electricity (Late Payment Surcharge) Rules, 2021

Mar 05, 2021 | by Avantis RegTech Legal Research Team

Loading audio.....

Industry Specific Compliance

The Ministry of Power on February 22, 2021 has issued the Electricity (Late Payment Surcharge) Rules, 2021 under the Electricity Act, 2003. 

The following provisions have been made: 

• These rules shall be applicable for payments to be made in pursuance of:

1. Power Purchase Agreements, Power Supply Agreements and Transmission Service Agreements, in which tariff is determined under section 62 of the Act. 

2. such Power Purchase Agreements, Power Supply Agreements and Transmission Service Agreements that become effective after these rules come into force, in which tariff is determined under section 63 of the Act. 

• Late Payment Surcharge shall be payable on the payment outstanding after the due date at the base rate of Late Payment Surcharge applicable for the period for the first month of default.

• The rate of Late Payment Surcharge for the successive months of default shall increase by 0.5 percent for every month of delay provided that the Late Payment Surcharge shall not be more than 3 percent higher than the base rate at any time. 

• 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 shall be first adjusted towards Late Payment Surcharge and thereafter, towards monthly charges, starting from the longest overdue bill.

• Provided further that, if a distribution licensee has any payment including Late Payment Surcharge outstanding against a bill after the expiry of seven months from the due date of the bill, it shall be debarred from procuring power from a power exchange or grant of short-term open access till such bill is paid.

[Notification No. G.S.R. 128 (E)]

 


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.