Covid-19 shutdown: CERC lowers late payment charges on discoms
The Central Electricity Regulatory Commission (CERC) has cut the late payment surcharge levied by power generation companies (Gencos) on Distribution Companies (Discoms).
A CERC order said that late payment surcharge (LPS) payable by discoms to gencos and transmission companies will be lowered to 1 per cent per month from 1.5 per cent per month during the lockdown period.
The Centre had directed the CERC to lower the burden on discoms who were unable to collect payments from end consumers because of the 21-day Covid-19 lockdowns. There is also a sustained fall in demand for power as industrial and commercial units are not operational.
This puts more pressure on discoms as their high tariff consumers (commercial and industrial) are not running operating, while demand from cheaper tariff (residential consumers) has firmed up.
