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Power department owes consumers Rs 10 crore

New Delhi: UT power department owes its consumers Rs 10 crore as interest on security deposit. The electricity department caters to 2.15 lakh consumers in nine categories. Most of the power is consumed by domestic consumers, followed by those in the commercial category.

The Joint Electricity Regularity Commission (JERC) has approved the amount to be paid as interest on security, which will be adjusted in the bills to be generated from May and June. The commission has considered a net addition of Rs 5 crore in consumer security deposits during the year.

As per regulations laid down by JERC, the distribution licensee has to pay interest at the bank rate notified by the Reserve Bank of India (RBI) from time to time on security deposits taken from the consumer. It is the responsibility of the licensee to keep watch on the prevailing bank rate.

Interest on security deposits has been calculated in accordance with the multi-year tariff (MYT) Regulations 2014, based on average of opening and closing consumer security deposits during the year.

According to regulations, while applying for a connection, each consumer has to pay security charges at the rate of Rs 750 per kilowatt, for which the department charges security amount ranging between Rs 1,000 and Rs 10,000, depending on the type of the connection, which include domestic, commercial, small supply, medium supply, large supply, bulk supply and agriculture. Depending on the connection, consumers will get benefit of up to Rs 1,000.

The department generates bi-monthly bills for domestic customers. Domestic consumers have been divided into four groups of 50,000 each. They pay bills in six cycles a year, while bills of commercial consumers are generated every month.

Recently, the commission marginally increased power rates in domestic and commercial categories while reducing rates in the industrial category. The hike in different slabs was done to ensure more rational distribution of tariff. The new rates came into effect from April 1.