According to Sec. 5.1 of the Security Deposit Regulations, 2007 issued by the Karnataka Electricity Regulatory Commission, domestic electricity consumers in Mysore are required to pay a Security Deposit to Chamundeshwari Electricity Supply Company. This security deposit is two times (the cost of 45 units plus the fixed charge).
According to Interest on Security Deposit Regulations, 2005 issued by KERC, CESC should pay interest on this deposit at the bank rate as on April 1. This annual interest should be credited to the consumer before the end of June. The details of the deposit and the interest paid should be given to the consumers along with the bill in the month in which the interest is adjusted. An excess amount being held as deposit must be refunded to the consumer.
Let us look at a typical domestic consumer with a sanctioned load of 2.5 kW. After the recent revision of electricity tariffs, the monthly fixed charge is Rs. 25 for the first kW of the sanctioned load plus Rs. 35 for each additional kW of sanctioned load. So the fixed charge for a sanctioned load of 2.5 kW is Rs. 77.50. Now, the the cost of electricity is Rs. 2.20/unit (upto 30 units) and Rs. 3.40/unit (for 31-100 units). and so the cost of 45 units is 30x2.20 + 15x3.40 = 117. So the Security Deposit is 2x(117+77.50)=389 Rs. Since the bank rate was 6% on April 1, 2011, CESC should have credited 389x0.06 = 23 Rs. into the consumer's account in his June electricity bill. Note that the deposit amount and the interest on it could be lower in the June, 2011 bill, since the fixed charges and electricity rates were lower then.
In all the electricity bills we have checked, CESC has credited the interest on the Security Deposit in the June electricity bill. But it has not given the amount held by it as deposit, which is violative of the Interest on Security Deposit Regulations, 2005.
Consumers are advised to check their June electricity bills to make sure that the interest on the deposit is being credited to their account. They should also make sure that CESC is not holding an excess amount as deposit and are paying the correct rate of interest. CESC and its predecessors, MESCOM and KEB have collected various amounts at various times as deposits,additional deposits, etc. and CESC may not have a full record of exactly how much amount they are holding as deposit. So, if the consumers have proof of what they have paid in the past, they should make sure that the entire amount is entered into CESC registers.
Prof. S.Sekhar, Mysore Grahakara Parishat
According to Interest on Security Deposit Regulations, 2005 issued by KERC, CESC should pay interest on this deposit at the bank rate as on April 1. This annual interest should be credited to the consumer before the end of June. The details of the deposit and the interest paid should be given to the consumers along with the bill in the month in which the interest is adjusted. An excess amount being held as deposit must be refunded to the consumer.
Let us look at a typical domestic consumer with a sanctioned load of 2.5 kW. After the recent revision of electricity tariffs, the monthly fixed charge is Rs. 25 for the first kW of the sanctioned load plus Rs. 35 for each additional kW of sanctioned load. So the fixed charge for a sanctioned load of 2.5 kW is Rs. 77.50. Now, the the cost of electricity is Rs. 2.20/unit (upto 30 units) and Rs. 3.40/unit (for 31-100 units). and so the cost of 45 units is 30x2.20 + 15x3.40 = 117. So the Security Deposit is 2x(117+77.50)=389 Rs. Since the bank rate was 6% on April 1, 2011, CESC should have credited 389x0.06 = 23 Rs. into the consumer's account in his June electricity bill. Note that the deposit amount and the interest on it could be lower in the June, 2011 bill, since the fixed charges and electricity rates were lower then.
In all the electricity bills we have checked, CESC has credited the interest on the Security Deposit in the June electricity bill. But it has not given the amount held by it as deposit, which is violative of the Interest on Security Deposit Regulations, 2005.
Consumers are advised to check their June electricity bills to make sure that the interest on the deposit is being credited to their account. They should also make sure that CESC is not holding an excess amount as deposit and are paying the correct rate of interest. CESC and its predecessors, MESCOM and KEB have collected various amounts at various times as deposits,additional deposits, etc. and CESC may not have a full record of exactly how much amount they are holding as deposit. So, if the consumers have proof of what they have paid in the past, they should make sure that the entire amount is entered into CESC registers.
Prof. S.Sekhar, Mysore Grahakara Parishat