Answer: All State Electricity Boards are authorized to collect security deposits from their customers as a condition of delivery. Because all customers pay their bills after using electricity, a security deposit is required. They only pay after receiving a bill for the previous month’s consumption.
What is the meaning of an additional security deposit?
Examine a postpaid power bill’s pattern. It’s created after a month’s worth of consumption. It has a 14-day due date and a seven-day grace period before cutting service for non-payment.
On average, 45 days of consumption are regarded advanced, and their bill amount is constantly at risk as far as the department is concerned. As a result, in terms of security, it is critical to obtain advance payment for such usage.
As a result, the security deposit is a cost to cover the expected 45-day power use.
Let us come to the original question of what is additional security deposit?
At the start of the fiscal year, the department must verify each individual consumer’s average consumption pattern and, if necessary, issue reminders to deposit a balanced security amount.
What is the formula for calculating ASD?
Bangalore Electricity Supply Company (BESCOM) recently sent all BESCOM customers a 30-day notice requesting an extra security deposit depending on their latest fiscal bill payment, plan, and consumed load. Every fiscal year, the ASD will be calculated and a 6% interest rate will be applied. The ASD, on the other hand, is refundable, and the consumer must pay it in cash at the pertinent branch offices, although the power bill can be paid online.
This act was implemented in accordance with the Karnataka Electricity Regulatory Commission (KERC) 2007 norms, which state that if a consumer has a bill amount between Rs. 200 and Rs. 1,000 and a difference in the two-month minimum monthly deposit (2MMD), he must pay the readjustment amount to the licensee to avoid disconnection. According to BESCOM, there is a Rs.96,570 disparity between the present deposit and the calculated MMD.
According to BESCOM, the licensee will assess the appropriateness of all users’ security deposit amounts in the first quarter of each year, based on the previous year’s average usage. Consumers who have any objections shall submit the application within seven days of the date of issue. To avoid being disconnected, you will have 15 days to pay the new sum. This rule has been under consideration for the past five years, but it went into force in January 2014.
Why should a consumer pay the Additional Security Deposit (ASD) each year?
With consumers using an increasing number of electrical equipment and the high growth in the unit price of power each year, it is clear that as power consumption rises, so will the billing amount. The ASD insurance acts as a compensation between BESCOM’s security deposit and the consumer’s current billing figure, with BESCOM benefiting.
BESCOM conducts an audit every year in the months of March and April to collect the ASD, if the ASD to be paid is more than Rs. 200 (home users) and Rs. 1000 (commercial consumers) (commercial consumers). In the case of a rental property, the ASD will be paid by the property owner or by mutual agreement by both the landlord and the tenant. The ASD for communal spaces in an apartment, on the other hand, should be paid by the association out of common money.
How does the Additional Security Deposit (ASD) work?
A licensee is required by law to collect a security deposit when establishing a new connection. Based on the consumer’s required amount of power, a standard amount will be set as an initial security deposit. This amount will then be computed using the average bill amount from the previous year’s corresponding months (as per monthly billing/bi-monthly billing).
One of the primary goals of the Additional Security Deposit (ASD) was to protect BESCOM against customers who failed to pay their electricity bills. The connection was also not disconnected because a consumer was usually allowed a 30-day opportunity to pay his electrical bill, plus a 15-day grace period.
What is the payment procedure of the Additional Security Deposit (ASD)?
A consumer’s ASD information can be found at the bottom of his monthly electricity bill receipt. The ASD will be paid in the same way that a regular power bill is paid (online/BESCOM office). When the customer pays the extra amount, it is automatically classified as the ASD. It is recommended, however, that if the customer is paying the bill at the venue, he informs the personnel.
* The ISD (Initial Security Deposit) can be paid in cash, DD, or bank guarantee.
Can the ASD be refunded?
Yes. If a consumer’s meter is turned off, the ASD will be repaid. Because there are extremely few occasions where a meter is canceled or surrendered, the odds of receiving an ASD refund are slim.
What happens if we don’t pay our Maharashtra electricity bill?
MSEDCL (Maharashtra State Electricity Distribution Company Limited) has asked all regional offices to reclaim the arrears and cut off power supply immediately if payments are not made.
What steps do I need to take to receive my security deposit refunded from MSEB?
I A completed application form for a refund, signed by the registered customer. (Annexed is the Application Form’s format.) (ii) In the case of a corporation, a Board of Directors resolution authorizing the surrender of the connection and the refund of the security deposit.
Why is Msedcl requesting a higher security deposit?
Customers pay a security deposit on their electricity bills to ensure that the electricity board does not lose money. If the consumer fails to pay their electricity payment despite receiving notice and warning. Their security deposit will be reduced by the amount of their electricity bill.
Is it required to pay ASD?
The ASD amount is usually printed just after the total billing amount at the bottom of your monthly electricity statement.
Only when a meter is turned off is the ASD repaid. Officials from BESCOM claimed that the chances of them having to reimburse are slim because most consumers do not surrender their meters or disconnect their lines.
Ravi, who lives in SJR Redwoods on Sarjapur Road, claims that in the past, BESCOM has given discounts on power bills when the security deposit paid was higher.
The ASD must be paid by the landowner in the case of a rented property. However, it is up to the landlord and renter to agree on who would be responsible for paying the rent. If the ASD amount is reimbursed, it will be given to the landlord; consequently, the tenant should not be required to pay the sum.
What if ASD isn’t compensated?
d) If the ASD is not paid within the specified time frame, the installation will be disconnected with 30 days’ notice. Expenses incurred by LT Applicants in the provision of any electric line or electrical plant shall be collected in accordance with the K.E.R.C.
In your current bill, how much is ASD paid?
a response ( 1 ) ASD stands for additional security deposit, and before I explain what ASD in an electricity bill means, let me first define security deposit. A person must deposit a security amount in a postpaid electric connection when applying for a new electricity connection.
Why is it necessary to have a set price on your electricity bill?
The Fixed Charge is used to recoup the fundamental cost of electric service, regardless of the amount of energy consumed. It is a charge for the use of Electric’s equipment, such as poles, wires, and transformers, as well as personnel, to provide members with safe and dependable electric service. Energy charges are used to recover energy utilized, whereas fixed charges are used to recover the basic costs of electric service and infrastructure used by consumers, or we can say indirectly rent for using the electrical company’s wires and poles.
The fixed charge is determined by the sanctioned load. The larger the load sanctioned fixed fee, the higher it will be.
What is the formula for calculating fixed charges?
The fixed-charge coverage ratio divides total interest and lease expenses by the sum of lease payments and profits before income and taxes (EBIT).
