Power consumers in the MSEDCL’s Nagpur Circle will receive a separate bill for ‘Additional Security Deposit’ along with their electricity bills for April and May. MSEDCL has appealed to consumers to extend cooperation by paying the amount, stating that the process is being implemented as per Maharashtra Electricity Regulatory Commission (MERC) regulations. Consumers use electricity first and pay the bill later. It takes about one-and-a-half months for the bill to be generated and paid. To cover potential financial risk during this period, the Electricity Act, 2003 mandates collection of a security deposit equivalent to the average bill of two months from every consumer.

 

The amount remains with MSEDCL in the consumer’s name and is refunded with interest when the power supply is permanently disconnected. As per the Electricity Supply Code, 2021, this deposit is recalculated annually. If a consumer’s electricity consumption increased in the previous year, the security deposit amount based on the two-month average also rises. In such cases, the amount already held is deducted and only the difference is demanded as ‘Additional Security Deposit’. Notably, MSEDCL pays annual interest on the deposit at the RBI rate - last year’s rate was 6.75 per cent - which is adjusted in the consumer’s electricity bill.

 

Suppose the existing security deposit of a consumer is Rs 1,000. If his power usage increased last year and the new calculation requires a deposit of Rs 1,200, he will have to pay only the additional Rs 200. For low-tension consumers, payment has been simplified. Consumers can pay the additional security deposit from home via MSEDCL’s official website www.mahadiscom.in or through the ‘MSEDCL’ mobile app. The Public Relations Department of MSEDCL stated that consumers should pay the security deposit on time and cooperate, as the amount is ultimately used for consumers’ benefit and to strengthen the power distribution system.