(1) The payment of charges for Deviation, the additional charges for Deviation, congestion charges or any other charges payable as per the SLDC's statement shall have a high priority and the concerned buyer/seller shall pay the indicated amounts within 7 (Seven) days of the issue of statement of charges for Deviation including additional charges for Deviation by the SLDC into “the State Deviation Pool Account”.
(2) If payments against the charges for Deviation including additional charges for Deviation, congestion charges or any other charges are delayed by more than 1 [one day, i.e., beyond Eight (8) days] from the date of issue of the bill by the SLDC, the defaulting buyer/seller shall have to pay simple interest @ 0.04% for each day of delay:
2 [Provided that in case of delay in payment of any weekly bill beyond 24 days from the date of issue of bill by SLDC, the simple interest payable by the defaulting State Entity shall be @0.08% for each day of delay beyond the said period of 24 days.]
(3) All payments to the buyer/seller entitled to receive any amount on account of charges for Deviation shall be made within 5 working days of receipt of the payments in the “State Deviation Pool Account” beyond which buyer/seller shall also be entitled for simple interest @ 0.04% for each day of delay:
Provided that,—
(i) in case of delay in the payment of charges for Deviations into the State Deviation Pool Account and interest, if any, there on, 3 [beyond 8 days] from the date of issuance of the Bill of charges, the buyer(s)/seller(s) who have to receive payment for Deviation or interest there on shall be paid from the balance available, if any, in the State Deviation Pool Account. In case the balance available is not sufficient to meet the payment to such buyer(s)/ seller(s), the payment from the State Deviation Pool Account shall be made on pro rata basis from the balance available in the Fund referred to the regulation 15; and 1 Sub. for words and figures “two days, i.e. beyond Nine (9) days” in sub-regualtion (2) vide not. No.
HPERC/428 dated 29 th June, 2019, published in R.H.P. dated 3 rd July, 2019 at p. 3131-3137.
2 Ins. proviso vide not. No. HPERC/428 dated 29 th June, 2019, published in R.H.P. dated 3 rd July, 2019 at p. 3131-3137.
3 Sub. for regulation 14 in sub-regualtion (3) for the words and figures “beyond 9 days” vide not. No.
HPERC/428 dated 29 th June, 2019, published in R.H.P. dated 3 rd July, 2019 at p. 3131-3137.
22 Compendium of HPERC Regulations, March 2021
(ii) the liability to pay interest for the delay in payments to “the State Deviation Pool Account” shall remain till interest is not paid; irrespective of the fact that buyer/seller who have to receive payments have been paid from the “State Deviation Pool Account” in part or full.
(4) In case of default in payment of the amount recoverable by the distribution licensee from any other State Entities as per sub-regulation (7) of regulation 12, the outstanding amount, alongwith interest shall be recovered by the SLDC from the defaulting Entities as per the provisions of this regulation by treating the same procedure as applicable for the Deviation charges and the additional charges for deviation. For this purpose, the SLDC shall assign priority to this amount on weekly/monthly basis, under sub-regulation (4) of regulation 12, starting from the date on which the matter is referred by the distribution licensee to the SLDC in accordance with these provisions. Such amount shall, on recovery, from the defaulting Entity(ies), be credited to the account of the distribution licensee.
(5) All buyers/sellers, which had at any time during the previous financial year, failed to make payment of charges for Deviation including additional charges for Deviation within the time specified in these regulations shall be required to open a Letter of Credit (LC) equal to 110% of its average payable weekly liability for Deviations in the previous financial year, in favour of the SLDC before 14th April of the financial year:
Provided that,—
(i) if any buyer/seller fails to make payment of charges for Deviation including additional charges for Deviation by the time specified in these regulations during the current financial year, it shall be required to increase the amount of LC already opened as per the above provision or open a new LC, as the case may be, for an amount equivalent to 110% of the average weekly liability for the current financial year; and
(ii) the LC amount shall be increased to 110% of the payable weekly liability for Deviation in any week during the year, if it exceeds the previous LC amount by more than 50%;
Illustration: If the average payable weekly liability for Deviation of a buyer/seller during 2018-19 is Rs. 20 Crore, the buyer/seller shall open LC for Rs. 22 Crore in 2019-20.
If the weekly payable liability during any week in 2019-20 is Rs. 35 Crore which is more than 50% of the previous financial year's average payable weekly liability of Rs. 30 Crore, the buyer/seller shall increase the LC amount to Rs. 38.5 Crore (1.1* 35.0) by adding Rs.
16.5 Crore.
(6) In case of failure to pay into the “State Deviation Pool Account” within the specified time of 1 [8 days] from the date of issue of statement of charges for Deviations, the SLDC shall be entitled to encash the LC of the buyer/seller to the extent of the default and the buyer/seller shall recoup the LC amount within 3 days.
2[(7) In case a State Entity defaults in making payment of a weekly bill, whether directly or through LC, by more than 30 days beyond the due date, the HPSLDC, in order to recover the dues, may, apart from invoking the provisions made elsewhere in these 1 Sub. for regulation 14 in sub-regualtion (6) for the words and figures “9 days” vide not. No.
HPERC/428 dated 29 th June, 2019, published in R.H.P. dated 3 rd July, 2019 at p. 3131-3137.
2 Ins. sub-regualtion (7) vide not. No. HPERC/428 dated 29 th June, 2019, published in R.H.P. dated 3 rd July, 2019 at p. 3131-3137.
Compendium of HPERC Regulations, March 2021 23 regulations, also suitably curtail the schedule for the defaulting State Entity, by way of withholding NOC/concurrence or any other appropriate means, after giving a notice of 30 days to such defaulting State Entity and may also continue such curtailment till the entire updated outstanding amount, including interest also, is paid by that defaulting State Entity and the requisite letter of credit, as per the equirement of sub-regulation (5) of this regulation is also opened and made operative.]