The Ministry of Power (MoP) has issued the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. As per these rules, the total dues owed by the distribution companies (discoms) to generation and transmission companies can be paid in equated monthly instalments (EMIs). Discoms with over Rs 100 billion of dues can clear them in a maximum of 48 EMIs, while those with dues of Rs 40 billion-Rs 100 billion, Rs 20 billion-Rs 40 billion, Rs 10 billion-Rs 20 billion and Rs 5.01 billion-Rs 10 billion will have a maximum of 40 months, 34 months, 28 months and 20 months respectively. Meanwhile, discoms with less than Rs 5 billion worth of dues will have a maximum of 12 months to settle their dues. Further, late payment surcharge (LPS) will be payable on the payment outstanding after the due date at the base rate applicable for the period 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 does not exceed 3 per cent higher than base rate any time.
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