Section 20 in The Maharashtra Electricity Regulatory Commission (Distribution Open Access) Regulations, 2014
20. Security Deposit.
- 20.1 Except where the Consumer chooses to purchase the meter, the Distribution Licensee may require the Consumer to provide security for the price of the meter, in accordance with the provisions of clause (b) of sub-section (1) of Section 47 of the Act:Provided that in no case shall the amount of the security exceed the price of the meter.20.2The Distribution Licensee may require the applicant to provide security equivalent to one month billing for wheeling charge, cross-subsidy surcharge and additional surcharge on charges of wheeling, calculated in accordance with the terms and conditions of the Connection and Use of Distribution System Agreement.Provided that in case of Short term Open Access the Distribution Licensee shall collect the security deposit commensurate with the duration of Open Access instead of one month billing as provided at Regulation 20.2.20.3Where the security deposit from the Supplier under Regulation 20.2 is required at the commencement of the Connection and Use of Distribution System Agreement, such security deposit under Regulation 20.2 shall be calculated based on estimated use of the distribution system for wheeling of electricity:Provided that in case where power is sought through Power Exchange, the security deposit shall be provided by the consumer in accordance with Regulation 20.2 of these Regulations.Provided that the amount of the security deposit may be adjusted when the amount of additional security required or surplus security held exceeds ten (10) per cent of the balance held with the Distribution Licensee.20.4The security under this Regulation 20 may, at the option of the person giving such security, be by way of cash (including demand draft), irrevocable letter of credit or unconditional bank guarantee issued by a scheduled commercial bank:Provided that where the security deposit is in the form of cash, it shall earn interest at a rate equivalent to the bank rate of the Reserve Bank of India:Provided further that the security shall be deposited within fifteen (15) days from the date of receipt of notice from the Distribution Licensee.
