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Why burden electricity consumers with additional security deposits?

By Lokmat English Desk | Updated: April 19, 2025 21:25 IST

Lokmat News NetworkChhatrapati SambhajinagarChhatrapati SambhajinagarMaharashtra State Electricity Distribution Company Limited (MSEDCL) consumers in the area are ...

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Lokmat News Network

Chhatrapati Sambhajinagar

Chhatrapati Sambhajinagar

Maharashtra State Electricity Distribution Company Limited (MSEDCL) consumers in the area are being issued separate bills for additional security deposits along with their regular monthly electricity bills. This move has sparked criticism, especially from Ambadas Danve, Leader of Opposition in the Legislative Council, who questioned the necessity of this additional charge. He confirmed he would raise his voice against it.

The new deposit, based on average annual usage, is calculated at twice the monthly bill or 1.5 times the quarterly bill. Consumers have expressed frustration over the unexpected burden, as the security deposit is recalculated annually under MERC’s regulations (Electricity Supply Code 2021).

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Collecting security deposits is unjust

"Collecting additional security deposits from electricity consumers is unjust. It places an unnecessary financial burden on them. I will raise my voice and protest against this decision, as it harms the consumers without providing any real benefit."

-MLC Ambadas Danve, Leader of Opposition

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No real benefit to consumers

"There is no tangible benefit to consumers from the additional security deposit. The only return they get is minimal interest, equivalent to the Reserve Bank of India’s rate, which is then adjusted against their electricity bills, offering little value."

-Hemant Kapadia, Former consumer representative, MERC

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Consumer statistics in Chhatrapati Sambhajinagar urban division

• Residential: over 3.09 lakhs

• Commercial: 36,734

• Industrial: 6,938

• Others: 6,415

• Total: over 3.60 lakhs

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