Section 56.272. Accrual of late payment charges

(a) Every utility subject to this chapter is prohibited from levying or assessing a late charge or penalty on any overdue utility bill, as defined in § 56.271 (relating to payment), in an amount which exceeds 1.5% interest per month on the overdue balance of the bill. These charges are to be calculated on the overdue portions of the bill only. The interest rate, when annualized, may not exceed 18% simple interest per annum.

(b) An additional charge or fixed fee designed to recover the cost of a subsequent rebilling may not be charged by a regulated utility.

(c) Late payment charges may not be imposed on disputed estimated bills, unless the estimated bill was required because utility personnel were willfully denied access to the affected premises to obtain an actual meter reading.

(d) A utility may waive late payment charges on any customer accounts.

Notation

Cross References

This section cited in 52 Pa. Code § 56.264 (relating to billing information); and 52 Pa. Code § 56.411 (relating to duties of parties: disputing party’s duty to pay undisputed portion of bills; utility’s duty to pay interest whenever over payment found).