Late payment surcharge for discoms reduced in Madhya Pradesh

The Madhya Pradesh Electricity Regulatory Commission has reduced the rate of current late payment surcharge (LPS) to be paid by state discoms to power generators and interstate transmission licensees by 0.5 per cent per month. Madhya Pradesh Power Management Company Limited declared the coronavirus pandemic and the subsequent nationwide lockdown as a force majeure event. The commission’s latest order states that if payments get delayed by 45 days from March 24, 2020 to June 30, 2020, relief can be claimed according to the power purchase agreements (PPAs) or transmission service agreements. The commission noted that in the given situation, the provisions of the 2020 Tariff Regulations for the interest on working capital should be adopted as the normative rate of late payment surcharge in place of the penal rate of surcharge.

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