Bhubaneswar: Amid widespread protests by consumers across Odisha against additional security deposit (ASD) levied by it, Tata Power has justified the move, claiming is a statutory requirement mandated under the Electricity Act, 2003.
The decision to levy ASD on electricity bill has drawn strong opposition from consumer associations, which have questioned both the timing and justification of the demand. Many consumers say they were not informed in advance about any review of security deposits and remain unclear about the basis on which the additional amounts have been calculated.
Opposition political parties, including Biju Janata Dal (BJD), also came down heavily on the power distribution companies for levying additional deposit. On Thursday, youth and student wings of BJD staged demonstrations outside Tata Power offices in Bhubaneswar, demanding immediate withdrawal of ASD and installation of smart meters.
Protesters were seen breaking smart meters at several places as a mark of dissent. Similar agitations took place in Salipur, Dhenkanal, and Puri districts.
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Debi Prasad Mishra alleged that ASD and smart meter notices were against public interest and should be immediately withdrawn. “The ASD demand notices should be withdrawn forthwith, as they impose an unjust and additional burden on the public,” he said, adding that a consumer pays security deposit at the time of getting an electricity connection.
However, Tata Power Distribution Companies CEOs at a press conference in Bhubaneswar on Thursday dismissed the allegation and claimed that the levy of ASD on 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. Sim
ilar 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, 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.