Late payment surcharge for PSPCL reduced

Patiala, April 8

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In a major reprieve to the Punjab State Power Corporation Limited (PSPCL), the power regulator has temporarily reduced the rate of late payment surcharge (LPS) due towards all private thermal plants and solar power stations in the state.

Taking suo motu action on the Punjab Government’s direction of March 30, the Punjab State Electricity Regulatory Commission (PSERC) has decided to provisionally reduce the rate of LPS to 6% per annum for such payments which become delayed beyond the due date during the period from March 24 till June 30 payable by the PSPCL to the generating companies and Punjab State Transmission Corporation. The orders in this regard were issued on April 7 by the PSERC.

The government had on March 30 issued directions to the PSERC under Section 108 of the Electricity Act, 2003, to specify a reduced rate (subject to maximum 6% per annum) of late payment surcharge for payable by the PSPCL to generators during the period from March 24 to June 30 this year. It said the restrictions imposed by the Central and state governments to contain Covid-19 should be treated as an event of force majeure.

As per Section 108, the commission shall be guided by such directions in matters of policy involving public interest as the state government may give to it in writing.

Even due to less cash flow in such conditions, the PSPCL has to make regular payments on account of coal cost, railway freight, salary and pension and power purchase payments. This matter will be taken up for hearing along with a public hearing on May 7, 2020. — TNS