Late Payment Surcharge: Karnataka, J&K, Mizoram yet to clear ₹805.74-cr dues

After the Power System Operation Corporation (POSOCO) restricted 27 Discoms across 13 States from buying electricity through power exchanges, so far 23 distribution entities across 10 States have cleared dues of ₹4,234.56 crore under the Late Payment Surcharge (LPS) rules.

Per data compiled by the PRAAPTI portal, as on August 21, the total dues outstanding for four Discoms across three States is ₹850.74 crore. The list includes Discoms with outstanding amount of more than ₹1 crore. As on August 17, the total dues of 27 Discoms in 13 States was ₹5,085.30 crore.

Sources said that Tamil Nadu, Madhya Pradesh and Rajasthan have cleared their LPS dues of ₹73.53 crore, ₹240.93 crore and ₹341.60 crore, respectively by August 20.

On August 19, Telangana cleared its dues of ₹52.85 crore concerning three State Discoms. The State did not have any outstanding as on August 20. Sources had indicated that a couple of States will be clearing their LPS dues on Saturday, while some may do it on Monday.

The highest outstanding is now with Jammu & Kashmir (J&K), which have dues to the tune of ₹575.40 crore, followed by Karnataka with two discoms at ₹237.40 crore and Mizoram at ₹37.94 crore.

POSOCO, which is under the charge of the Union Power Ministry, took action under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, to bar Discoms from procuring power from exchanges.

Under the rules, Discoms have to pay LPS on the outstanding amount post the due date at the base rate, which will be applicable for the first month of default.

The rate of LPS for successive months of default will increase at 0.5 per cent monthly, with a maximum cap of not more than 3 per cent higher than Base Rate. The LPS also should not be more than the rate of LPS specified in the agreement between the parties.

The Discom payments will first go towards meeting the LPS dues and then to pay up the monthly charges, beginning from the longest overdue bills.

Published on

August 22, 2022

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