Discoms' dues down by a third to Rs 93,000 crore in less than a year of enforcing Late Payment Surcharge Rule

The outstanding dues of electricity distribution utilities (discoms) have decreased by one-third to around Rs 93,000 crore in less than a year since the implementation of the Late Payment Surcharge (LPS) Rules in June 2022. The LPS scheme has led to financial discipline among discoms, ensuring that outstanding dues and current bills are paid in time. Strict implementation of the LPS Rules can make the power sector more viable, and non-payment of current dues can result in the regulation of power supply. The power ministry has also made it mandatory for discoms to open credit letters or make timely payments for power supply to ensure financial discipline.

from Energy-Industry-Economic Times https://ift.tt/KfkpqlW