Section 11 in Maharashtra Electricity Regulatory Commission (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005
11. Security Deposit.
- 11.1 Subject to the provisions of sub-section (5) of Section 47 of the Act, the Distribution Licensee may require any person to whom supply of electricity has been sanctioned to deposit a security in accordance with the provisions of clause (a) of sub-section (1) of Section 47 of the Act.11.2The amount of the security referred to in Regulation 11.1 above shall be an equivalent of the average of three months of billing or the billing cycle period, whichever is lesser. For the purpose of determining the average billing under this Regulation 11.2, the average of the billing to the consumer for the last twelve months, or in cases where supply has been provided for a shorter period, the average of the billing of such shorter period, shall be considered:Provided that in the case of seasonal consumers, the billing for the season for which supply is provided shall be used to calculate the average billing for the purpose of this Regulation 11.2.Explanation. - for the purpose of this Regulation 11.2, the term "seasonal consumers" means consumers who normally operate for a part, not exceeding nine (9) months, of the year, including cotton ginning factories, cotton seed oil mills, cotton pressing factories, salt manufacturers, khandsari / jaggery manufacturing units and such other consumers who may opt for seasonal pattern of consumption in accordance with the applicable tariff Order of the Commission.11.3Where the Distribution Licensee requires security from a consumer at the time of commencement of service, the amount of such security shall be estimated by the Distribution Licensee based on the tariff category and contract demand / sanctioned load, load factor, diversity factor and number of working shifts of the consumer.11.4The Distribution Licensee shall re-calculate the amount of security based on the actual billing of the consumer once in each financial year.11.5Where the amount of security deposit maintained by the consumer is higher than the security required to be maintained under this Regulation 11, the Distribution Licensee shall refund the excess amount of such security deposit in a single payment:Provided that such refund shall be made upon request of the person who gave the security and with an intimation to the consumer, if different from such person, shall be, at the option of such person, either by way of adjustment in the next bill or by way of a separate cheque payment within a period of thirty (30) days from the receipt of such request:Provided further that such refund shall not be required where the amount of refund does not exceed the higher of ten (10) per cent of the amount of security deposit required to be maintained by the consumer or Rupees Three Hundred.11.6Where the amount of security re-calculated pursuant to Regulation 11.4 above, is higher than the security deposit of the consumer, the Distribution Licensee shall be entitled to raise a demand for additional security on the consumer.Provided that the consumer shall be given a time period of not less than thirty days to deposit the additional security pursuant to such demand.11.7Where a consumer who has deposited security subsequently opts to receive supply through a prepayment meter, the amount of such security deposit shall, after deduction of all monies owing from such consumer, be either refunded to such consumer or treated as a part of the value of the prepayment credit to the account of such consumer, from which the value of his future consumption is to be deducted.11.8The Distribution Licensee may apply any security so deposited, towards satisfaction of any amount which is due or owing from the consumer.11.9Upon termination of supply, the Distribution Licensee shall, after recovery of all amounts due, refund the remainder amount held by the Distribution Licensee to the person who deposited the security, with an intimation to the consumer, if different from such person.11.10A consumer -(i)with a consumption of electricity of not less than one lac (1,00,000) kilo-watt hours per month; and(ii)with no undisputed sums payable to the Distribution Licensee under Section 56 of the Act may, at the option of such consumer, deposit security under this Regulation 11, by way of cash, irrevocable letter of credit or unconditional bank guarantee issued by a scheduled commercial bank.11.11The Distribution Licensee shall pay interest on the amount of security deposited in cash (including cheque and demand draft) by the consumer at a rate equivalent to the bank rate of the Reserve Bank of India:Provided that such interest shall be paid where the amount of security deposited in cash under this Regulation 11 is equal to or more than Rupees Fifty.11.12Interest on cash security deposit shall be payable from the date of deposit by the consumer till the date of dispatch of the refund by the Distribution Licensee.
