The Ministry of Power has notified Electricity (Late Payment Surcharge) Rules, 2021, reducing the interest rate on late payments by power distribution companies (discoms). The new rules are aimed at improving the liquidity of power discoms by reducing the interest charged on late payment of dues to power producing companies. This interest burden is being reduced from the existing rate of 18% to 13.15% – which is the State Bank of India’s base lending rate of 8.15% as on April 1, 2020, plus 5%.