Power consumers under Maharashtra State Electricity Distribution Company Limited in the Nagpur Circle will receive a separate bill for “Additional Security Deposit” along with their electricity bills for April and May. The utility has appealed to consumers to cooperate, stating that the move is in line with regulations set by the Maharashtra Electricity Regulatory Commission.
Since electricity is consumed before payment is made—typically with a billing cycle of around 45 days—the Electricity Act, 2003 mandates a security deposit equivalent to two months’ average bill to cover potential financial risk.
This deposit is maintained in the consumer’s name and is refunded with interest when the connection is permanently disconnected. As per the Electricity Supply Code, 2021, the deposit is revised annually. If a consumer’s power usage increases, the required deposit amount also rises. In such cases, the existing deposit is adjusted, and only the difference is charged as the “Additional Security Deposit.”
For example, if a consumer has already deposited ₹1,000 and the revised requirement is ₹1,200, only ₹200 will be payable as the additional amount.
MSEDCL also pays annual interest on the deposit at rates linked to the Reserve Bank of India—last year’s rate was 6.75%, which is adjusted in electricity bills.
To make payments easier, low-tension consumers can pay the additional deposit online via the official MSEDCL website or through the MSEDCL mobile app. The utility has urged consumers to pay on time, noting that the deposit ultimately supports system stability and benefits consumers by strengthening the power distribution network.
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