Additional Security Deposit for BESCOM: Some questions answered Additional security deposit is the difference between the security deposit with BESCOM and the billing corresponding to two months as per the revised rates. Ganga Madappa, 22 Jan 2014 , Citizen Matters In the past month, several apartment complexes on Sarjapur Road in Bengaluru received a notice from BESCOM asking for payment of additional security deposit. In one case, the notice specified that the existing deposit was Rs 47,120 and the calculated MMD (Months Minimum Deposit) was Rs 1,43,690, and therefore the difference of Rs 96,570 was needed to be paid to BESCOM to avoid disconnection. When this came to Citizen Matters’ notice, we decided to have a chat with BESCOM to find out what the security deposit meant and why apartments should pay up. What is the security deposit that BESCOM asks for? This is the ASD amount that consumers can see at the bottom of their electricity bill and needs to rightfully be paid to BESCOM. this amount is typically calculated on the average bill amount corresponding to two months in the case of monthly billing. where monthly billing is approx. and that it was necessary to collect this money to protect itself from those consumers who did not pay their electricity bill on time.BESCOM collects a security deposit from all its consumers at the time of issuing a new connection. it is only inevitable that power consumption too increases and with it the . A grace period of 15 days is added to this. At this time. What is the Additional security deposit (ASD)? At any point in time. BESCOM sources say that the security deposit is akin to the deposit collected by banks as minimum balance or by landlords from tenants prior to giving a house on rent. in this case. Why does BESCOM ask for ASD every year? With the almost annual increase in the unit price of power. the BESCOM sends a notice to the consumer. For instance if the average bill amount corresponding for 2 months is Rs 1500. to meet the difference. In the following year. the security deposit should be Rs 1900 (950x2). and on the average bill amount corresponding to four months in case of bi-monthly billing. the security deposit that BESCOM needs to have from a consumer is equal to 2 months billing. The initial security deposit is a standard amount that is fixed based on the amount of power that a consumer requires. BESCOM also states that consumers are typically given 30 days time to pay their bill. So even for those consumers who do not pay their bills on time. Rs 400. Rs 750. asking him to pay the difference. From the following year. then the security deposit that a consumer is liable to give BESCOM is Rs 1500 (750x2). as a result of hike in the unit price rise or due to increase in consumption of power. the connection typically did not get disconnected for 45 days and this was another reason why it was essential that they collected the security deposit. if the monthly billing value rises to Rs 950. and an increase in the number of electrical appliances that consumers use. BESCOM carries out an audit every year in March-April and this is when the amount of security deposit for consumers is calculated. iron boxes and other heavy appliances during peak hours Turn off unnecessary lights and fans during peak hours Switch off air-conditioners during peak hours Information Source: bescom. While leaving your home for a long period of time. Turn off all lights other than security lights when a building is not in case Tips to reduce consumption of electricity Switch off the fridge for one hour between 6 to 9 pm Do not use washing machines.either at one of BESCOM’s sub-divisional offices or online. Officials also mentioned that they asked consumers for ASD. geysers. Tips from BESCOM Switch off lights and other electrical appliances when not in use.billing amount too.org How can I check if I need to pay ASD? The ASD amount is typically printed at the bottom of your monthly electricity bill. For consumers who pay their electricity bill at Bangalore One centers. Here the additional amount paid would automatically be considered as payment for the additional security deposit in case there was any balance to be paid. turn off the mains. immediately after the total billing amount. you need to ensure that you inform the staff sitting at the counter that the payment is for the ASD. only if the additional amount to be paid was greater than Rs 200 for domestic consumers and Rs 1000 for commercial consumers. . The Additional Security Deposit is the difference between the security deposit that BESCOM has and what they are meant to have in correlation with consumers’ present billing. How can ASD be paid? The Additional Security Deposit can be paid just as the regular electricity bill . Should the ASD be paid compulsorily? It is best that people pay the additional security deposit that BESCOM asks for. it would be given to the landlord. What happens to the ASD request received for common areas in apartments? The community has to share the amount and pay it. . In the event that the ASD amount was to be refunded. While BESCOM is justified in asking for the security deposit and the additional security deposit. Since January 2013. the association will pay it from the corpus or common funds. Who pays the ASD in case of a rented property? In case of a rented property. This gap in communication has probably led to people misunderstanding the reason for the security deposit and therefore being unwilling to pay the amount. says that in the past he has seen cases where BESCOM gave discount on the electricity bill when the security deposit paid was more. it is up to the landlord and tenant to decide between themselves by mutual consent as to who would bear the responsibility of payment. Ravi. therefore the tenant shouldn’t ideally have to pay the amount. You can have a look at the press release here. However.Is there any possibility of the ASD being refunded? The ASD is refunded only on termination of a meter. there does not seem to have been sufficient communication from them in the past to intimate people about what it really is. BESCOM officials stated that the chances of them having to refund was minimal as people typically do not surrender their meter or terminate the connection. Typically. the ASD needs to be paid by the land owner. a resident of SJR Redwoods on Sarjapur Road. However. BESCOM has put a grievance redressal system in place where consumers can resolve complaints about faulty or excess billing.