Nagpur: Maharashtra State Electricity Distribution Company Limited (MSEDCL) will refund a total of Rs 29.87 crore as interest to low-tension electricity consumers in the Nagpur circle for the financial year 2024–25, against the security deposits they paid. This interest amount is being adjusted directly into the consumers’ electricity bills.
Of this, Rs 26.13 crore will be refunded to 15.40 lakh consumers in Nagpur district, while Rs 3.74 crore will go to 3.96 lakh consumers in Wardha district. Compared to the previous financial year, this year’s refund amount is higher by Rs 2.09 crore. MSEDCL stated that the security deposit collected from consumers is used by MSEDCL not only for consumer welfare, but it also earns interest at rates determined periodically by the Reserve Bank of India (RBI).
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15 july 2025
The discom claimed that MSEDCL’s entire operation runs on the strength of its consumers. “The revenue collected from electricity bills covers power purchase, transmission, distribution, maintenance, repairs, and administrative expenses. It is only when consumers pay their bills regularly that MSEDCL can continue purchasing and supplying electricity smoothly,” said MSEDCL. The distribution company has the right to reassess security deposits once a year, based on electricity consumption patterns.
If a consumer’s security deposit falls short of the average two-month consumption amount for the financial year, they are issued a bill for an additional security deposit. Even if a consumer previously paid a deposit, if their electricity usage or tariffs increased, the difference is billed as an additional security deposit. For consumers who have not yet paid the additional deposit, the outstanding amount is being adjusted from the interest on the security deposit.
The regulatory commission has instructed that interest on consumer security deposits be paid at rates specified by the RBI from time to time, depending on the deposit’s duration. Importantly, the security deposit held with MSEDCL remains the consumer’s money — when the electricity supply is permanently disconnected, this deposit is refunded to the consumer along with the interest. MSEDCL has appealed to all consumers to promptly pay any additional security deposit amounts when billed, in order to ensure smooth operations and continued cooperation.
