The Ministry of Power has published the Draft Late Payment Surcharge Rules for public comments on the 20th of December 2021.  The draft provides a phase-wise, equitable framework for penal action to ensure payment discipline. The draft also has provisions to enable automatic sale of unrequisitioned power by generators on a day ahead basis. Strict payment discipline is critical to sector sustainability and thus, timelines to ensure phase-wise resolution of pending dues as well as a framework for penal action for delay in payment is the first imperative step to realizing this goal, and is welcome. However, there are challenges with the current approach inherent in the proposed framework. If unaddressed, it could result in the sector being mired in significant litigation, increased cost to consumers and contribute to the growing liabilities of the state distribution companies. Our comments on potential implementation issues and challenges are detailed in this submission.