The Central Government in exercise of powers conferred Section 176(1) of the Electricity Act, 2003 and in supersession of the Electricity (Late Payment Surcharge) Rules, 2021 has notified Electricity (Late Payment Surcharge and Related Matters) Rules, 2022.


Key points:

  • 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.
  • 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 three percent higher than the base rate at anytime.
  • 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.
  • Total outstanding dues including Late Payment Surcharge upto the date of the notification of these rules shall be rescheduled and the due dates re- determined for payment by a distribution licensee in the following maximum number of equated monthly installments
Outstanding dues amount (in
Rs. Crore)
Maximum no. of equated monthly
installments (months)
Up to 500 12
501 – 1,000 20
1,001 – 2,000 28
2,001 – 4,000 34
4,001 – 10,000 40
>10,000 48
  • A distribution licensee or other user of transmission system, as the case may be, shall maintain unconditional, irrevocable and adequate payment security mechanism.

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