Section 5(5) in The Tamil Nadu Electricity Supply Code, 2004
(5)Additional Security Deposit. -(i)The adequacy of security deposit may be reviewed and re-fixed once in a year in case of HT consumers and once in every two years in case of LT consumers taking into account the interest due for credit. Such reviews shall be made in the month of April / May. The rate of interest on the security deposit shall be on the basis of the commission's directive to the licensees in this regard.(ii)The adequacy of security deposit shall be based on the periodicity of billing for the respective category.(a)For the categories of consumer under monthly billing, the security deposit is equivalent to two times of the monthly average of the electricity charges for the preceding twelve months prior to April.(b)For the categories of consumer under bi-monthly billing, the security deposit is equivalent to three times of the monthly average of the electricity charges for the preceding twelve months.(c)For the categories of consumer under half-yearly billing, the security deposit is equivalent to seven times of the average charges per month.(iii)Interest at Bank rate or more as specified by the Commission shall .be calculated and credited to the security deposit accounts of the consumers at the beginning of every financial year i.e. April and the credit available including the interest shall be informed to each consumer before the end of June of every year.(iv)If available deposit is less than the revised security deposit, the balance shall be collected as additional security deposit either through a separate notice or by a distinct entry in the consumer meter card for LT services. Thirty days notice period shall be allowed for the payment. If the payment is not received within the above period of thirty days, the service is liable for dis-connection.(v)Where, on review, the amount of security deposit held is found to be in excess of the requirement, the excess shall be adjusted against two future demands for the electricity supplied. Where, after such adjustment in future of two demands, there is balance to be refunded, the refund shall be made by cheque before the due date for payment of the third demand.(vi)In the event of the consumer failing to pay to the licensee any sum that may become due for payment to the licensee on the dates fixed for payment thereof, the licensee may, in addition to and without prejudice to the other rights of the licensee, appropriate a part or whole of the security deposit and interest thereon towards the sum due from the consumer.
