BESCOM collects a security deposit from all its consumers at the time
of issuing a new connection. The initial security deposit is a standard
amount that is fixed based on the amount of power that a consumer
requires. From the following year, this amount is typically calculated on
the average bill amount corresponding to two months in the case of
monthly billing, and on the average bill amount corresponding to four
months in case of bi-monthly billing.
BESCOM sources say that the security deposit is akin to the deposit
collected by banks as minimum balance or by landlords from tenants
prior to giving a house on rent, and that it was necessary to collect this
money to protect itself from those consumers who did not pay their
electricity bill on time.
BESCOM also states that consumers are typically given 30 days time to
pay their bill. A grace period of 15 days is added to this. So even for
those consumers who do not pay their bills on time, the connection
typically did not get disconnected for 45 days and this was another
reason why it was essential that they collected the security deposit.
What is the Additional security deposit (ASD)?
At any point in time, the security deposit that BESCOM needs to have
from a consumer is equal to 2 months billing. For instance if the average
bill amount corresponding for 2 months is Rs 1500, where monthly
billing is approx. Rs 750, then the security deposit that a consumer is
liable to give BESCOM is Rs 1500 (750x2). In the following year, if the
monthly billing value rises to Rs 950, as a result of hike in the unit price
rise or due to increase in consumption of power, the security deposit
should be Rs 1900 (950x2). At this time, the BESCOM sends a notice to
the consumer, asking him to pay the difference, in this case, Rs 400, to
meet the difference. This is the ASD amount that consumers can see at
the bottom of their electricity bill and needs to rightfully be paid to
BESCOM.
Why does BESCOM ask for ASD every year?
With the almost annual increase in the unit price of power, and an
increase in the number of electrical appliances that consumers use, it is
only inevitable that power consumption too increases and with it the