The Ministry of Power has issued a notification bringing into effect amendments to the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. The new rules, titled the Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules, 2025, were published in the Official Gazette on May 2, 2025, and come into force on the same date.
The amendment replaces the words “generating companies inter-state transmission licensees” with “generating companies, transmission licensees”.
This alteration effectively broadens the scope of the rules concerning late payment surcharges. While the original rules specifically mentioned “inter-state transmission licensees,” the amendment removes the “inter-state” qualifier, suggesting that the rules will now apply to all transmission licensees, regardless of whether their operations span across states or are confined within a single state.
The Electricity Act, 2003, under which these rules are framed, empowers the Central Government to make rules for various aspects of the power sector. These amendments aim to streamline the regulations related to late payment surcharges across the entire spectrum of power generation and transmission entities in the country.
The implications of this amendment are significant for transmission companies operating at the state level, as they will now fall under the purview of these rules concerning late payment surcharges and related matters. This move could bring about greater uniformity and discipline in financial transactions within the power sector.
