Tata Power Seeks to Assuage Consumer Concerns Over Additional Security Deposit, Says Process is Statutory
DISCOM officials further stated that consumers continue to earn interest on their security deposits, with the accrued amount credited annually to electricity bills in accordance with regulatory provisions
Bhubaneswar: TP Odisha Distribution Companies on Thursday sought to address consumer concerns over the levy of Additional Security Deposit (ASD) on electricity bills, stating that the process is a statutory requirement mandated under the Electricity Act, 2003 and governed by regulations of the Odisha Electricity Regulatory Commission (OERC).
Clarifying the issue at a media conference here, heads of the four Tata Power DISCOMs operating in Odisha said that Security Deposit (SD) adjustments and the levy of ASD are directly linked to consumers’ electricity consumption patterns and the applicable tariff structure. Consumers whose electricity consumption declined during the previous financial year are eligible for adjustment or refund of excess security deposit through their bills. Conversely, consumers who recorded higher consumption are required to deposit additional security to ensure adequate coverage as prescribed under regulatory norms.
The clarification came in the wake of protests by the opposition Biju Janata Dal and some consumer forums over the ASD levy.
DISCOM officials further stated that consumers continue to earn interest on their security deposits, with the accrued amount credited annually to electricity bills in accordance with regulatory provisions. All funds collected towards Security Deposit and Additional Security Deposit are maintained as fixed deposits with scheduled banks, ensuring full protection of consumer money. These deposits, they emphasised, are not utilised for operational or any other purposes.
Security deposits, along with applicable interest, are fully refundable when a consumer surrenders or opts out of an electricity connection. In addition, DISCOMs offer prepaid electricity connections, which do not require any security deposit or additional security deposit, thereby providing consumers with greater flexibility.
During 2024–25, interest amounting to Rs 217.29 crore was credited to consumer electricity bills across the state at an interest rate of 6.50 per cent.
Speaking on the occasion, Gajanan Kale, Chief Odisha Distribution Business, Tata Power, said the company serves nearly one crore consumers across Odisha and follows robust regulatory mechanisms to ensure uninterrupted power supply round the clock. He said the annual security deposit review is a mandatory regulatory exercise aimed at safeguarding consumer interests while ensuring business continuity. The security deposit earns 6.50 per cent annual interest, adjusted in electricity bills during the first quarter, with excess amounts arising from reduced consumption also adjusted.
Officials noted that the framework governing SD and ASD is neither new nor discretionary and has been in practice for decades, including during the tenure of erstwhile utilities such as CESU, NESCO, SOUTHCO and WESCO. Consumers notified for ASD are required to make payments within the stipulated period, failing which a surcharge of 15 per cent per annum is applicable on overdue amounts, as per statutory provisions.
