ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION
Regulation
No. 6 of 2004
Security Deposit to be paid by consumers to the Distribution Licensee for the energy supplied and for providing of electric line/electrical plant/electric meter
INTRODUCTION
Section 47 of the Electricity Act 2003, deals with the power of the Licensee to require security from consumers towards amounts due to him in respect of the electricity supplied or towards the cost of providing any electric line / electric plant or electric meter for supply of electricity pursuant to Section 43 of the Act. The section also provides that the Licensee is entitled to refuse to give supply or provide the line / plant / meter to the applicant as long as the applicant fails to give such security and where the security already given becomes invalid or insufficient, the Licensee can discontinue the supply of electricity if the consumer fails to provide reasonable security within 30 days after the service of a notice to this effect by the Licensee for the payment of all monies which may become due to the Licensee in respect of supplying electricity, etc. The Act has made an express provision for payment of interest on the security amount at Bank Rate or a higher rate as may be specified by the concerned State Commission. The Licensee is not entitled to require security from a person receiving supply through a pre-payment meter.
A draft Regulation consistent with the above provisions of
the Act was published in the A.P.Gazette on
Some of the salient features of the draft Regulation are:
· Payment of Security Deposit by way of cash / DD for the energy supplied / to be supplied.
· Security Deposit amount shall be two months’ charges in case of monthly billing and 3 months charges’ for bi-monthly billing.
· Annual review will be done and additional Security Deposit will be demanded in case of shortfall. Refund will be made in case of excess.
· Initial Security Deposit is specified in terms of flat rate per KW/KVA/HP for the sake of simplicity in the interest of consumers.
· The Licensee has to pay interest at Bank Rate (RBI rate) and penal interest at twice this rate for delay in making annual adjustment in bills.
· Licensee can refuse / disconnect supply for non-payment of Security Deposit.
· Security for providing electric line / plant / meter.
The Commission has examined the comments and suggestions
received and made suitable changes in the draft Regulation, wherever necessary.
ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION (SECURITY DEPOSIT) REGULATION 2004.
In exercise of the powers conferred by
section 181 read with sub-sections (1) and (4) of section 47 of the Electricity
Act 2003 (36 of 2003) and all powers enabling it in that behalf, the Andhra
Pradesh Electricity Regulatory Commission hereby makes the following
Regulation, dealing with the Security Deposit to be provided by the Consumer
and matters incidental and ancillary thereto:-
1.
Short title, commencement and interpretation:
i. This Regulation may be called the Andhra Pradesh Electricity Regulatory Commission (Security Deposit) Regulation, 2004.
ii. This Regulation shall be applicable to all
Distribution Licensees in their respective licensed
areas, in the State.
iii. This Regulation shall come into force 3 months after the date of its publication in the Andhra Pradesh Gazette.
2
Definitions:
In this Regulation, unless the
context otherwise requires:-
(a) “Act”
means the Electricity Act, 2003 (36 of 2003);
(b) “Commission”
means the Andhra Pradesh Electricity Regulatory Commission;
(c) “consumption
charges” means the consumption of electrical energy in Kwhrs
multiplied by appropriate tariff rates and also includes Demand/Fixed charges,
Fuel Surcharge Adjustment (FSA) and customer charges etc., wherever applicable.
(d) “high tension (HT) consumer” means a consumer who is supplied
electricity at a voltage higher than 440
volts.
(e) “low
tension (LT) consumer” means a consumer who is supplied electricity at a voltage
up to 440 volts.
(f) “month” means the calendar month. The period of about 30 days between the two consecutive meter readings shall also be regarded as a month for purpose of billing;
(g) “State” means the State of
(h) Words
and expressions used and not defined in this Regulation but defined in the Act
shall have the meanings as assigned to them in the Act.
(1) The
distribution licensee may require from any person, who requires a supply of
electricity to his premises in pursuance of section 43 of the Act, to give
security as provided in clause 4 herein, for the payment of all monies, which
may become due to the licensee
(a) in respect of the electricity supplied to such person; and
/or
(b) where any electric line or electrical plant or electric
meter is to be provided for supplying electricity to such person, in respect of
the provision of such line or plant or meter.
(2) If
such person fails to give such security under sub-clause (1), the Distribution
Licensee may refuse to give the supply of electricity or to provide the line or
plant or meter for the period during which the failure continues.
(1) The LT consumers shall at all times maintain with the licensee an amount equivalent to consumption charges (i.e demand/fixed charges and energy charges etc., as applicable) of three months wherever bi-monthly billing is in vogue and two months’ charges in the case of monthly billing cycle, as security during the period the Agreement for supply of energy to such LT consumers is in force:
Provided that as and when the
bi-monthly cycle is replaced with monthly billing cycle, the licensee shall
refund the excess amount, if any, over the two months’ charges by adjustment
against the then outstanding dues to the Licensee or any amount becoming due to
the Licensee immediately thereafter.
(2) The
HT consumers shall at all times maintain with the licensee an amount equivalent
to consumption charges (i.e demand charges and energy charges etc., as applicable) of two
months as security during the period the Agreement for supply of energy to such
HT consumers is in force.
(3)
If any person requiring supply under LT or HT is
prepared to take the supply through a pre-payment meter, the distribution
licensee shall not be entitled to collect the security deposit from such
person:
Provided that in the case of
existing consumers (LT or HT) who opt for the supply through pre-payment meter,
the Licensee shall refund the amount of the
security deposit of such consumer lying with the Licensee by adjustment of the
then outstanding dues to the Licensee or any amount becoming due to the Licensee immediately thereafter.
(4) The
initial security deposit payable at the time of releasing the supply shall be
at flat rates mentioned in clause 5
herein.
(5) The
amount payable towards security shall be in the form of a cash/demand draft (DD)
drawn in favour of the licensee.
5. Initial Security Deposit:
(1) The
applicants for electricity shall pay initial security deposit towards the electricity to be
supplied to them at the flat rates given hereunder:
|
LT Category Services |
Amount of Initial Security Deposit |
||
|
For bi-monthly billing |
for monthly billing |
||
|
(i) |
For Domestic Purpose up to 250 |
Rs.100 |
Rs.80 |
|
(ii) |
For Domestic Purpose above 250 Watts contracted load. |
Rs.300 per KW or part thereof. |
Rs.200 per KW or part thereof. |
|
(iii) |
For industrial purpose, including cottage industries |
Not applicable |
Rs.500 per HP or part thereof of contracted load |
|
(iv) |
For Non-Domestic/Street lights / General purpose |
Rs.1200 per KW or part thereof of contracted load. |
Rs.800 per KW or part thereof of contracted load. |
|
(v) |
For Agriculture Category Purpose |
Rs.60 per HP or part thereof of contracted load |
Rs.40 per HP or part thereof of contracted load |
|
HT Category Services |
|
|
|
|
(vi) |
HT Categories - I and I(B) |
Not applicable |
Rs. 500 per kVA per shift on contracted demand |
|
(vii) |
For all other HT Categories |
Not applicable |
Rs. 1000 per kVA on contracted demand |
(2) In the case of consumers who are
sanctioned additional demand, the additional security
deposit shall be calculated for the additional demand as if it is a new service.
(3) If the applicant does not make payment
of Initial Security Deposit in terms of this clause, the Licensee can refuse to
release supply.
(4) The initial security
deposit shall be appropriately adjusted after the expiry of two months or three
months, as the case may be, in accordance with sub-clause (1) or (2) of clause
4 above.
(1) General
Review
Subject to
the billing periods of three months or two months as specified in Clauses 4,
the adequacy of the amount of security deposit in respect of consumers shall be
reviewed by the licensee generally once in every year
(preferably after revision of tariff for the respective year) based on
the average consumption for the period representing 12 (twelve) months from
April to March of the previous year.
(2) Demand notice for Additional Security Deposit
(a)
Based on review as per sub-clause (1)
above, demand for shortfall or refund of excess will be made by the licensee :
Provided, however, that if the security
deposit payable by the consumer is short by or in excess of not more than 10% of the existing
security deposit, no demand for shortfall will be made for payment of
Additional Security Deposit and the consumer shall not be entitled to demand
the refund of the excess.
(b) If the existing Security Deposit of a
consumer is found to be in excess by more than 10% of the required security
deposit, refund of the excess security deposit shall be made by the Licensee by
adjustment of the then outstanding dues from the consumer to the Licensee or
any amount becoming due from the consumer to the Licensee immediately
thereafter.
(c) Where the consumer is required to pay Additional
Security Deposit, the Licensee shall issue to the Consumer a 30 days' advance
notice specifying the amount payable with supporting calculations.
(3) Surcharge
for belated payment of additional security deposit
(a) The consumers shall pay the additional security
deposit within thirty days from the date of service of the demand notice issued
by the licensee.
(b) If there is any delay in payment, the consumer shall
pay surcharge thereon at 18% per annum or at such rates as may be fixed by the
Commission from time to time, without prejudice to the Licensee’s right to
disconnect supply of electricity, as per this Regulation.
(4) Disconnection for non-payment of
security deposit for the electricity supplied
In
the case where Additional Security Deposit is demanded by the licensee in terms
of clause 6, and the consumer does not make payment, the supply to the consumer
shall be liable for disconnection, without any further notice.
7. Interest
on Security Deposit payable by the Licensee:
(1) The licensee shall pay interest on security
deposit of a consumer, at the Bank Rate notified by Reserve Bank of
(2) The interest accruing to the credit of the consumer shall be adjusted annually against the amounts outstanding from the consumer to the Licensee as on 1st May of every year and the amounts becoming due from the consumer to the Licensee immediately thereafter.
(3) The Licensee shall duly show the amounts becoming due to the consumer towards interest on the security deposit in the bills raised on the consumer.
(4) The Licensee shall pay interest at twice the rate specified under sub-clause (1) above for the delay in making the adjustments for interest on security deposit.
8. Special
provision for seasonal industries:
(1) In the case of industries declared by a
general or special order of Commission as seasonal, the adequacy of the
security deposit shall be reviewed based on the consumption during the seasonal
period of the preceding year and such additional security deposit as required,
may be demanded by the Licensee by duly giving thirty (30) days' notice before
the commencement of seasonal period.
(2) It shall be ensured that by the commencement
of seasonal period, the security deposit equivalent to 2 (two) months’ charges during season is available for the seasonal supply.
(3) At the end of the season, a review of
Security Deposit shall be made again with reference to the consumption during
off-season period of the preceding year and the security deposit in excess of
two months’ “off-season” consumption charges shall be refunded by adjustment
against the amounts outstanding from the consumer to the Licensee and the
amounts becoming due from the consumer to the Licensee immediately thereafter.
9. Refund
of Security Deposit:
Where an agreement for supply of electricity is
terminated as per the Terms and Conditions of supply, the Licensee shall be
required to refund the security deposit if any, after making adjustments for
the amounts outstanding from the consumer to the Licensee, within one month of
the effective date of termination of the agreement :
Provided that if such refund is delayed
beyond the period of one month as specified above, the Licensee shall pay
interest on such deposit at twice the rate applicable on such effective date of
termination of the agreement.
10. Security
for the electric line or electrical plant or electric meter:
(1) After receipt of
requisition for supply of electricity from any person pursuant to section 43 of
the Act, the Distribution Licensee shall take necessary steps to provide supply
as per the time limits specified in the Regulation under section 57 of the Act.
(2) The amounts to be paid
for providing of electric line or electrical plant or electric meter, as the
case may be, for supply of electricity to the person requisitioning supply,
shall be estimated by the licensee and communicated to such person.
(3)
On receipt of intimation from
Licensee, the person requisitioning supply shall give security by cash or
Demand Draft to the licensee, equivalent to the amount required under
sub-clause (2) above.
(4) The licensee shall pay
interest on the security amount at the Bank Rate notified by Reserve Bank of
(5) After furnishing of the security by the
person requisitioning supply, the Distribution Licensee shall take up the work
and take necessary steps for supply of
electricity within the time limits specified in the Regulation notified under section
57 of the Act.
(6)
If the person requisitioning
supply fails to give such security as mentioned in sub-clause (2), the Distribution
Licensee shall not be required to take up the work of providing electric line
or electric plant or electric meter, as the case may be, in respect of supply of electricity to
such person.
(7)
If the security given has become
invalid or insufficient, the Distribution Licensee may, by notice, require the
person requisitioning supply, within 30 days after service of the notice, to
revalidate, or make good the shortfall in, security in respect of provision of
such line or plant or meter.
(8) The Distribution Licensee shall maintain a
record of expenditure incurred for providing of electric line or electrical
plant or electric meter for supply of electricity to such a person.
(9) After execution of the
work of electric line or electrical plant or electric meter for extension of
supply, the Distribution Licensee shall be entitled to demand from the person
requisitioning the supply the amount reasonably incurred by him in respect of
providing the electric line or electric plant or electric meter for supply of
electricity to such person as per the Regulation notified by the Commission
under section 46 of the Act and adjust the security deposit lying with the
Licensee with interest accrued thereon for the amount due to the Licensee. In the event the Security amount with
interest accrued thereon is in excess of the amount to be adjusted by the
Licensee, the Licensee shall refund the excess amount by adjustment in the
amount which will become due to the Licensee from the consumer immediately thereafter
for supply of electricity or for any other services.
Miscellaneous
11. Power
to remove difficulties:
(1) In case of any difficulty in giving effect to
any of the provisions of this Regulation, the Commission may do or undertake
things, or by general or special order, direct the Licensee to take suitable
action, not being inconsistent with the provisions of Electricity Act, 2003,
which appears to the Commission to be necessary or expedient for the purpose of
removing the difficulty.
(2) The Licensee may
make an application to the Commission and seek suitable orders to remove any
difficulties that may arise in implementation of this Regulation.
12 Issue of orders and practice directions:
Subject
to the provisions of the Electricity Act, 2003 and this Regulation, the
Commission may, from time to time, issue orders and practice directions with
regard to the implementation of this Regulation and procedures to be followed
for such implementation and matters incidental or ancillary thereto.
13
Power to amend:
The Commission may, at any time add vary,
alter, modify or amend any provisions of this Regulation.
(BY ORDER OF THE COMMISSION)
V. SIVA PRASADA RAO
SECRETARY (FAC)