Electricity (Late Payment Surcharge and Related Matters) (Amendment) Rules, 2026 — draft
The Ministry of Power has proposed bringing standalone energy storage providers under the late payment surcharge rules, so discoms that buy storage services would face the same payment discipline they already face with generators and traders. The draft is expected to be placed for 30 days of public comment.
Why it matters. Payment security is a key risk for standalone storage tenders, so extending LPS cover should lower financing costs as tendered battery capacity grows.
What changes
- Creates a new category, 'energy storage service provider': a storage operator not owned by a generator, transmission licensee, discom or consumer.
- Extends the rules' protections for outstanding dues to these providers, alongside generators, transmission licensees and traders.
- Bills would be due by the date in the agreement, or within 45 days if none is set, with a surcharge on overdue amounts that rises the longer they stay unpaid.
- Discoms would have to keep a letter of credit that storage providers can draw on for unpaid bills.
- A discom with bills unpaid two and a half months after presentation would be barred from short-term and exchange power purchases.
Who is affected
BESS developers · Energy storage service providers · Discoms · Lenders
Sources
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