Bhubaneswar: Tata Power Thursday reaffirmed their decision to levy additional security deposit (ASD) on electricity bills, despite widespread protests by consumers across Odisha, officials said.
During the day, youth and student wings of the opposition BJD staged demonstrations outside the Tata Power offices here, demanding immediate withdrawal of ASD and the installation of smart meters.
At various places, protesters were seen breaking smart meters as a mark of dissent. Similar agitations took place in Salipur, Dhenkanal, and Puri districts.
ASD is calculated based on two months’ average electricity consumption.
For example, if a consumer’s average monthly bill is Rs 5,000, s/he must deposit Rs 10,000 as ASD.
The protesters, led by senior BJD leader Debi Prasad Mishra, alleged that ASD and smart meter notices were against public interest and should be immediately withdrawn.
“The ASD demand notices should be withdrawn forthwith, as they impose an unjust and additional burden on the public,” Mishra said, adding that a consumer pays a security deposit at the time of getting an electricity connection.
Similar agitations opposing the ASD were also held in Salipur, Dhenkanal and Puri district, where consumers demanded immediate withdrawal of notices.
The State Electricity Consumers Mahsangh, meanwhile, called upon people not to pay ASD.
“I appeal consumers not to succumb to Tata Power’s pressure and refrain from making any payment,” Mahasangh president Panchanan Kanungo said.
However, Tata Power Distribution Companies CEOs at a press conference here rejected the allegation and claimed that the levy of ASD on the electricity bill is a statutory requirement mandated under the Electricity Act, 2003 and abides by the Odisha Electricity Regulatory Commission (OERC) regulations.
“The ASD is not new for Odisha. Similar ASD provision is also there in the states like Gujarat, Uttar Pradesh, Maharashtra, Karnataka, Chhattisgarh and Andhra Pradesh,” they said.
Gajanan Kale, chief, Odisha distribution business, Tata Power said, “Serving nearly 1 crore consumers, with a growing customer base, Tata Power’s distribution business follows robust regulatory mechanisms to ensure a reliable power supply 24×7, 365 days, in line with state and central guidelines.”
He said the annual security deposit review is a statutory exercise mandated by the regulator, designed to protect consumer interests while ensuring business continuity.
“The security deposit earns 6.50 per cent annual interest, which is adjusted in electricity bills during the first quarter, and any excess amount arising from lower consumption is also adjusted. These deposits are maintained as fixed deposits and are not used for operational purposes,” Kale said.
The CEOs also argued that the consumers whose electricity consumption has increased are required to deposit ASD to ensure that the security coverage remains sufficient in line with regulations.
In addition, Discoms also 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.
They pointed out that in 2024-25 fiscal year, interest on security deposit to the tune of Rs 217.29 crore at the rate of 6.50 per cent interest rate has been credited in consumer bills across the state.
“The framework governing security deposit and additional security deposit is neither new nor discretionary. These provisions have been in place for decades and were followed even during the period of erstwhile utilities such as CESU, NESCO, SOUTHCO and WESCO,” they said.
The CEOs said consumers who receive a notification for ASD are required to make the payment within the stipulated timeframe. As per statutory provisions, a surcharge of 15 per cent per annum is applicable on any unpaid amount beyond the due date. Recently, a delegation of Consumer Mahasangh submitted a memorandum to OERC (Odisha Electricity Regulatory) demanding the withdrawal of ASD demand notice.
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