Odisha Power Distribution Companies Issue Notices for Rs 656 Crore Additional Security Deposits
In a significant development affecting millions of electricity users, power distribution companies in Odisha have served notices to a staggering 64.7 lakh consumers, demanding an additional security deposit (ASD) of Rs 656 crore for the financial year 2025-26. This announcement was made by Deputy Chief Minister KV Singh Deo, who also serves as the state's energy minister, in a written reply to the Odisha Legislative Assembly on Wednesday.
Widespread Consumer Impact and Company-Specific Breakdown
The ASD notices have been distributed across the state's four major discoms, each targeting a substantial number of consumers. TPNODL, which operates in northern Odisha, has issued notices to 14.5 lakh consumers, aiming to collect Rs 107 crore. TPWODL has targeted 13.91 lakh consumers with a demand of Rs 165.9 crore. Similarly, TPCODL has reached out to 19.86 lakh electricity users, seeking Rs 284.8 crore, while TPSODL, serving southern Odisha, has notified 16.44 lakh consumers for Rs 98.2 crore in ASD.
Regulatory Basis and Consumer Backlash
According to Singh Deo, the discoms are raising these ASD demands after reviewing the adequacy of security deposits based on the average consumption from the preceding financial year. This process is strictly governed by Regulations 53 and 54 of the OERC Distribution (Conditions of Supply) Code, 2019. Consumers are provided with a 30-day notice period before enforcement, and failure to pay after this period can lead to electricity disconnection under Section 56 of the Code.
Despite these regulatory assurances, the collection of ASD has sparked protests from various consumer associations and the general public. Many organizations argue that the move places an undue financial burden on households and businesses, especially in a post-pandemic economic climate.
Transparency Measures and Future Implications
Singh Deo emphasized that the discoms adhere strictly to the supply code provisions during ASD calculations, adjustments, and refunds to ensure transparency and prevent arbitrary demands. This step is intended to maintain financial stability for the power distribution infrastructure, but it raises concerns about affordability and access to essential services for low-income consumers.
The situation highlights ongoing challenges in balancing regulatory compliance with consumer welfare in Odisha's energy sector, potentially setting a precedent for other states grappling with similar issues.
