BHUBANESWAR : Despite massive public outcry against the additional security deposit (ASD) demand notice to electricity consumers, the Tata Power-managed distribution companies (discoms) have refused to budge on the issue stating it is a valid move and a statutory requirement under the Electricity Act, 2003 and regulations framed by the Odisha Electricity Regulatory Commission (OERC).
Addressing a press conference here in the presence of CEOs of all four discoms on Thursday, chief of Odisha distribution business Gajanan Kale said security deposit adjustment and ASD is linked to the consumption patterns of consumers and applicable tariff charges in the state.
“Consumers whose power usage has reduced during the last financial year are eligible for adjustment of excess security deposit in their electricity bills. Conversely, consumers whose electricity consumption has increased are required to deposit additional security to ensure that the security coverage remains sufficient in line with regulations,” he said.
Consumers continue to earn interest on their security deposits every year, with the interest amount credited to their electricity bills annually, in line with regulatory provisions. All amount collected towards security and additional security are securely maintained as fixed deposits with scheduled banks to ensure that consumer funds remain fully protected. These deposits are not used for any other purpose by the discoms, he said.
The security deposits, along with applicable interest, are fully refundable when a consumer surrenders or opts out of the electricity connection. In addition, discoms offer consumers the option of prepaid electricity connections, which do not require any security deposit or additional security deposit, providing greater flexibility and eliminating the need for such deposits altogether, he argued.
In 2024-25, interest on security deposit to the tune of Rs 217.29 crore (6.50 per cent interest rate) has been adjusted in consumer bills across the state, Kale said.
He said the framework governing security deposit and additional security deposit is neither new nor discretionary. These provisions have been in place for several decades and were followed even during the period of erstwhile utilities such as CESU, NESCO, SOUTHCO and WESCO.