Discoms cannot evade late payment surcharge

Discoms cannot evade late payment surcharge

The Cabinet Committee on Economic Affairs said late payment surcharge will be made mandatory for power distribution companies. This is in line with the recommendations of a Group of Ministers (GoM) on issues relating to stressed thermal power projects.

“We will be writing to the regulators to enforce this on the Discoms,” Minister of State (Independent Charge) for Power and New and Renewable Energy, RK Singh, said.

The move aims to put a check on errant Discoms that seek waiver of late payment surcharge levied by power generation companies. “Effectively this waiver would result in a discount of 3-5 per cent on the total bills raised,” a power sector official said.

“Through this decision, the CCEA has also allowed the grant of coal linkages for short-term power purchase agreements. Read More

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