Tangedco to resume security deposit collection
CHENNAI: After a gap of two years, the cash-strapped Tamil Nadu Generation and Distribution Corporation (Tangedco) is planning to resume the practice of collecting security deposits from domestic consumers. A senior official confirmed that the process would be initiated after the Lok Sabha elections.
“The revision of security deposits is mandated for High Tension (HT) consumers every year and once every two years for Low Tension (LT) consumers,” the official told TNIE.
The official added a comprehensive review of bills was conducted in April 2023 in accordance with regulations but the state government had advised against collecting deposits from domestic consumers in order to alleviate the financial strain on consumers already hit by the 57% hike in electricity tariffs in September 2022. However, commercial and industrial establishments have proceeded with deposit submissions.
According to a directive from the Tamil Nadu Electricity Regulation Commission, the quantum of the deposit will be based on the billing frequency for the respective consumer categories. The deposits are collected as a means to protect Tangedco from defaulters and will be returned when the connection is surrendered.
Pay bill promptly, carry on deposit to next year
For those under monthly billing, security deposit would be two times the monthly average of electricity charges for 12 months prior to April. For consumers under bi-monthly billing, it would be three times the monthly average of electricity charges for preceding 12 months.
If the consumer promptly pays their bill, their security deposit for the year will be carried over to the next year, with Tangedco only collecting the difference for that particular year based on their average monthly bills for the preceding 12 months.
“As per the rule, we have to revise the security deposit for 2024-25. But, due to the model code of conduct, we cannot initiate it,” official said.
Deposit based on bill
For those under monthly billing, the deposit will be two times the monthly average of the electricity charges for the 12 months prior to April. For those under bi-monthly billing, it would be three times the monthly average