CERC reduces late payment surcharge for discoms

In line with the MoP’s directions, the Central Electricity Regulatory Commission (CERC) has reduced the rate for LPS payable by discoms to power generators from 1.5 per cent per month to 1 per cent per month, if the due date falls between March 24, 2020 and June 30, 2020. For any bill presented before March 24, 2020, or after June 30, 2020, the discom is liable to pay the LPS as per Regulation 59 of the Tariff Regulations, 2019. For projects where the tariff is determined through competitive bidding, relief on the LPS delayed for more than 45 days (falling from March 24, 2020, to June 20, 2020) can be claimed under the force majeure provision of the PPAs.