Cuttack: The Orissa High Court on Tuesday issued notices to Tata Power, the Odisha Electricity Regulatory Commission (OERC) and the Energy Secretary of Odisha government in connection with a petition challenging the imposition of Additional Security Deposit (ASD) on consumers.
The court has directed all parties to file their replies within 2 weeks, with the matter scheduled for hearing in 3 weeks.
The petition, filed by consumer groups and individuals, argued that Tata Power’s demand for ASD is arbitrary, financially burdensome and violates consumer rights. They claimed that the move disproportionately affects households and small businesses already struggling with rising costs.
Tata Power looks after power distribution in Odisha through four companies, TPCODL, TPSODL, TPNODL and TPWODL. In December, TPCODL decided to impose ASD.
Taking cognisance of the issue, the High Court bench has sought clarifications from Tata Power, while also asking the OERC and the Energy Secretary to explain their role in approving and implementing the policy. The court emphasised that consumer rights protection is a key responsibility of both the regulator and the government and any policy that affects lakhs of consumers must be justified transparently.
The controversy over ASD has triggered protests in recent weeks. Farmers’ groups, trade unions and consumer rights organisations staged demonstrations in Bhubaneswar, Cuttack and
several district headquarters, demanding immediate withdrawal of the additional deposit demand. Protesters argued that the additional charges amount to double billing and place an unfair burden on ordinary citizens. In some districts, residents blocked roads and staged sit-ins outside electricity offices, accusing the company of exploiting consumers. Opposition political parties also joined the chorus, criticising the BJP government for failing to protect public interest and calling for stronger regulatory oversight. The protests gained momentum ahead of the High Court’s intervention, forcing authorities to take note of the growing public anger.
Tata Power had earlier defended the decision and explained its justification at a press conference in Bhubaneswar on December 18, 2025. Senior company officials dismissed the allegations and said the levy of ASD on electricity bill is a statutory requirement mandated under the Electricity Act, 2003 and is in congruence with OERC regulations. Chief of Odisha distribution business Gajanan Kale said, “Tata Power serves 1 crore consumers and follows robust regulatory mechanisms to ensure a reliable power supply 24×7, 365 days, adhering to state and central guidelines. The ASD is not unique for Odisha and that similar provisions exist in the states like Gujarat, Uttar Pradesh, Maharashtra, Karnataka, Chhattisgarh and Andhra Pradesh. The security deposit earns 6.5 % 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 annual security deposit review is a statutory exercise mandated by the regulator, designed to protect consumer interests while ensuring business continuity.