Security Deposit |Additional security(ASD) in electricity connection

What is security in electrical connection?


       Whenever an applicant applies for a new connection a security amount has to be deposited in a postpaid electric connection. the reason is, in case the consumer makes dues and left his premises without depositing the total outstanding bill then this security amount would be adjusted in the final bill while doing its Permanent disconnection.

How do we decide the security amount?

  1. A security deposit shall be a bill amount of two months and will be decided by the electricity regulatory commission.
  2. Security amount will be different for a different type of consumer. And based on the lump sum two-month consumption it is calculated. Security deposit amount for different categories of consumers shall be determined by the electricity department’s Director and MD with the approval of the electricity Commission.
  3. In case if consumer applied for load increase, only an additional security amount for the additional load has to be deposited by the consumer, and a difference due rate in current and previous amount, of the previous load”s security amount also needs to be deposited.
  4.  If the rate of tariff increases in any financial year the difference of the two-month bill amount would also increase. The officer of the department may send notice to any consumer to deposit an additional security deposit (ASD)

Other cases when notice will be sent to the consumer?

  1. In case if The security deposit goes less deposited than the covering the estimated power consumption bill for 2 consecutive months based on his mean of the monthly consumed unit for the previous financial year.
  2. In case of a new connection applied, additional security amount ASD would be demanded only when the use of connection complete one year.
  3. The electricity department will be asked to the consumer to deposit additional security only when the additional security deposit amount exceeds 10% of the already deposited security deposit.
  4. The security deposit is lowered due to an adjustment of outstanding arrear.

Action if ASD not deposited by the consumer?

  1. The consumer should deposit the additional security within 30 days after the receiving of the notice sent by the department. If a consumer does not deposit security then, an officer may disconnect the connection for a while.
  2. Department may allow 3 installments to a consumer for depositing additional security amount.
  3. In case of the already deposited security amount is found to be more than 20% of the required security deposit, then that extra security amount has to be adjusted in the next monthly electricity bills.

How security adjusted in case of Permanent Disconnection?

  1.  If the consumer applied for permanent disconnection then the already deposited security bill should be adjusted in the final bill or returned to the consumer.
  2. The security deposit should be returned to the consumer, after adjustment of all dues in the final bill, within 30 days. However, if the delay in security payment exceeds 90 days, interest at current interest bank rates of the Reserve Bank of India shall be payable to the consumer. Officers must keep an eye on the Bank rate of the reserve bank of India.

Adjustment of Interest on Security in a Bill

The electricity department would pay interest on deposited security amount to the consumers at bank rate, decided by a reserve bank as on 1st April of the applicable financial year by way of adding interest in the bill of the consumer these months may be changed to April, May or June as per the applicable billing cycle. However, the department will not pay interest if the deposit is not made by way of cash, bank draft, or cheque. the interest rates would be changed from time to time as per the order of electricity commission.

The amount of additional security deposit may be accepted in parts.

The department should not connect line until the required additional security amount has been deposited by the consumer

security in Prepaid meter case

  1. In the case of, prepaid meter, the connection no need for a security amount to be deposited by the consumer to the electricity department. A distribution department shall not be authorized to require security. This means the company may take security amount not but it is not compulsory to deposit security in the department.
  2. section, if the person requiring the supply is prepared to take the supply through a prepayment meter, as and when distribution licensee provides a choice to consumer to opt for supply through pre-payment meter.

2 thoughts on “Security Deposit |Additional security(ASD) in electricity connection”

  1. I got Additional security deposit demand notice for 2023 year.

    from january 2022 to december 2022 total amount is 17238.57. and the formula used for calculation of ASD corresponding to 2 months is
    = [3.60-days / Total days billed] = 2833.74
    My doubt is how the above formula is used for calcuating ASD. Please explain to my email id: [email protected]


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