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BESCOM security deposit comes as a shock to power consumers

Chitra V. Ramani

Consumers get notices to pay three times the average bill


  • BESCOM official says collecting security deposit is a normal exercise
  • Consumers can opt to pay the amount in installments

    Bangalore: Do not be surprised if you get a notice from the Bangalore Electricity Supply Company (BESCOM) asking you pay up towards the security deposit.

    BESCOM has been issuing notices to consumers asking them to cough up the money, sometimes as much as three times their average monthly bill amount, for the purpose.

    This is what happened to Soya Beebi, resident of L.B. Shastri Nagar. "With my monthly electricity bill, I got a notice from BESCOM asking to pay around Rs. 5,000," she told The Hindu .

    When she contacted the local BESCOM office, she was told that as her power consumption had increased, she needed to pay more towards the security deposit.

    "I was not satisfied and I asked the BESCOM officials to recalculate," she said. Uma Sekhar of Kumara Park also received a notice along with her monthly bill. "I did not know why I was being asked to pay. BESCOM should have published a notification in the newspapers explaining why they were collecting money towards the three-month security deposit," she said.

    When contacted, a senior BESCOM official said that collecting money towards the security deposit was a normal exercise that the utility took up every year. "Whenever the tariff or the average consumption increases, the consumer will have to pay more towards the security deposit. We are sending the notices to our consumers for the past two months. It is not a sudden exercise."

    In January 2003, the electricity supply companies (ESCOMs) were directed to collect two months' security deposit against non-payment of bills by the Karnataka Electricity Regulatory Commission (KERC). However, the Karnataka Power Transmission Corporation Ltd. (KPTCL) and ESCOMs challenged the order in the High Court of Karnataka, which later referred the issue to KERC. In May 2005, The KERC upheld the order and directed the ESCOMs to collect only a two-month deposit. KPTCL and ESCOMs appealed against the order at the Central Electricity Appellate Tribunal (CEAT). "The CEAT order, which was passed recently, came in our favour. We are now continuing to collect a three-monthly minimum deposit," the official said.

    The official also said that 90-day deposit was essential, as it would take a minimum of 80 days for BESCOM to get the bill amount from its consumers. "Having a gap of just 60 days between the supply and payment of bills would naturally strain us."

    Consumers who are unable to pay the entire deposit amount may opt to pay in instalments.

    "The instalment option is open for all our consumers. The number of instalments will be decided on the quantum," he added.

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