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Methodology to regulate collection/refund of Security Deposit

As per clause 1 (ii) (b) of Board order dated 06.12.1996, for HT consumers, Security Deposit equivalent to two months’ current charge shall be in Cash or Demand Draft. As per Board order dated 23.09.2000, the additional security deposit payable by the HT/deemed HT consumers shall be 50% in cash/Demand Draft and balance 50% as Bank Guarantee issued by a nationalized bank if the amount is more than 5 lakhs. If the additional security deposit payable is less than or equal to Rs. 5 lakhs, the entire payment shall be by cash/Demand Draft. Bank Guarantee is not acceptable in such cases. Circular dated 26.11.2005 directs to follow the above methodology. But as per Clause 15 (3) (b) of Terms and Conditions to Supply Code 2005 approved by Kerala State Electricity Regulatory Commission for implementation with effect from 01.02.2006, for HT consumers “Total Security Deposit shall be remitted by cash or Demand Draft if the Security Deposit is less than or equal to Rs. 5 lakhs. For security deposit more than Rs. 5 lakhs, 50% of security deposit shall be remitted by cash or Demand Draft and for the balance 50% amount, Bank Guarantee is acceptable”.