Odisha Consumers Protest Tata Power’s Additional Security Deposit

Tata Power’s additional security deposit (ACD) notices to consumers in Odisha has triggered massive outrage. The Odisha High Court has now asked Tata Power, Odisha Electricity Regulatory Commission and state Energy Secretary to file a reply regarding ACD controversy and has given them two weeks’ time to reply. Clarifying via press conference Tata Power has said that the levy of Additional Security Deposit (ASD) on electricity bills, stating that the process is a statutory requirement mandated under the Electricity Act, 2003 and governed by regulations of the OERC. According to Tata Power, the framework governing Security Deposit and Additional Security Deposit (ASD) is neither new nor discretionary as this is in practice for decades it was implemented by erstwhile utilities such as CESU, NESCO SOUTHCO and WESCO in Odisha. The bone of contention seems to be the penalty slapped by Tata Power if ASD is not paid. In such cases a surcharge of 15% per annum is levied. The general feeling among consumers is that ASD should not be suddenly levied one fine morning. Consumers should be taken into confidence and enough notice be given. Incidentally all utilities do levy such charges. It happens in Mumbai and other places too. Public relations experts “There would not be such uproar had it been communicated. This is where their PR department comes to play.