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What is Additional Cash Deposit (ACD)?

In brief

According to Section IV, Clause 67 of the Kerala Electricity Supply Code 2014, rules for maintaining  Security Deposit for electricity charges and meter are described as follows:

Clause 67. Security for supply of electricity: 

  1. A distribution licensee may require any person who applies for supply of electricity to his premises to provide security : (a) in respect of electricity supplied; and (b) in respect of any electric line or electrical plant or electric meter provided for supplying electricity. 
  2. The licensee shall demand security deposit only at the rates approved by the Commission.
  3. The person who applies for supply of electricity shall deposit with the licensee such amount of security deposit as demanded by the licensee as per subregulation (2) above.
  4. If any person refuses to give such security, the licensee may refuse to give supply of electricity or to provide line, plant or meter, as the case may be.
  5. Where any person has not given such security as per subregulation (1) above or the security given by any person has become invalid or insufficient, the distribution licensee may, by notice, require that person, within thirty days after the service of the notice, to give the licensee reasonable security for the payment of all monies which may become due to it in respect of the supply of electricity or provision of such line or plant or meter.
  6. The consumer shall maintain with the licensee an amount at the rates specified below as security for the electricity supplied during the period of agreement:- (a) three times the average monthly bill amount in case of consumers under bi-monthly billing system; and (b) two times the average monthly bill amount in case of consumers under monthly billing system: Provided that the consumer shall not be required to furnish any security for supply of electricity if the consumer opts to take supply through pre-payment meter.

To take this into account, KSEBL furnishes the the average electricity usage of the previous fiscal year (April - March) of a consumer withing the first quarter of each fiscal year (April - June). The monthly bill amount is calculated at the current tariff for the average usage received. The bill amount equivalent to average usage of 3 months for consumers who receive billed every two months and the bill amount equivalent to 2 months for average usage for customers who receive billed monthly should be kept as security deposit. If the consumer's current security deposit is less than the estimated amount, the less amount will be recorded separately on the bill. If the average usage has decreased, the extra deposit amount will be returned by deducting from the bill. Interest at the bank rate is also paid every year for the security deposit.


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