NHPC has adopted a monthly billing cycle. Based on the Regional Energy Accounts issued by the respective regional electricity boards, billing is done centrally at the Corporate Office on monthly basis in accordance with the rates, terms and conditions of the tariff notification issued by Government of India/CERC for that particular power station. Payments are received through confirmed, revolving, irrevocable Letters of Credit opened by the beneficiaries in favour of NHPC and also directly through Demand Draft/Cheques. Due to opening of letters of credit by the beneficiaries and also as a result of special incentives offered by NHPC to the beneficiaries for making prompt payments, realization of payments has improved and in 2004-2005 it stood at 101.29%.

A surcharge @ 1.25% per month is levied if the payments are not made by the beneficiaries within the specified period.