Electricity distribution companies (Escoms) in Karnataka have to pay over Rs 1,600 crore to Adani Udupi Power Corporation Limited (UPCL) in late payment charges following an order by the Central Electricity Regulatory Commission (CERC).
Senior government officials said the CERC order pertains to late payment surcharges (LPS) between 2010 and 2015 when the escoms and the company, then owned by Nagarjuna Power Corporation Limited, were involved in a dispute over tariff.
Last year, the company moved CERC saying the escoms have continued to delay payments, which has led to the accumulation of LPS with interest.
The CERC also noted that the escoms have not formally disputed late payment charges.
