MSEDCL refunds Rs 26.20 crore interest on security deposit to consumers

Chhatrapati Sambhajinagar: The Maharashtra Electricity Distribution Company Ltd (MSEDCL) has reimbursed Rs 26.20 crore in interest on security deposits to 36.44 lakh electricity consumers in Chhatrapati Sambhajinagar, Latur, and Nanded circles. The amount is refunded through the electricity bill of the last two months. As per the Electricity Act 2003, payment of security deposit is mandatory for electricity consumers, and the amount is determined based on the annual electricity consumption of the customer.

Section 13.11 of the commission's electricity supply code 2021 states that the interest on the security deposit paid by the customer is deducted from the electricity bill at a rate equivalent to the rate of RBI. Regular electricity bill payers receive interest on their security deposit as per the bank interest rate.

MSEDCL requires a security deposit to ensure uninterrupted power supply to customers, especially in cases where customers migrate without prior notice to the authorities, close the connection on their own, or do not pay overdue bills. It takes approximately one and a half to two and a half months until the electricity bill used in the month is distributed to the consumers.

Joint managing director of MSEDCL, Dr Mangesh Gondawale, stated that the security deposit is required so that instead of depositing an amount for one bill, amounts equivalent to two bills are deposited for a year. The refund of interest on the security deposit will benefit 36.44 lakh electricity consumers of all categories in the specified circles.