Odisha Power Consumers Protest Tata Power's Additional Security Deposit Demand
Odisha Protests Tata Power's Additional Security Deposit

Residents across Odisha are up in arms against the state's power distribution companies, which have issued demand notes for Additional Security Deposits (ASDs). The notices, asking for amounts ranging from Rs 1,000 to several thousand rupees, have sparked widespread anger and organized protests.

Political and Public Outcry Against the Move

The Odisha State Power Consumer Forum has strongly condemned the action, labeling it as anti-people. The forum has actively called for consumers to refuse payment of the demanded amount. Rabi Behera, the forum's secretary, warned of a statewide people's movement if the government fails to intervene. He described the ASD as a huge burden on ordinary consumers.

The political opposition has united in its criticism. The Biju Janata Dal (BJD) has formally written to the Odisha Electricity Regulatory Commission (OERC), urging the immediate withdrawal of the demand notices, calling it an unfair financial load on the public. Congress leader and former finance minister Panchanan Kanungo went further, accusing the power companies of loot.

The ruling Bharatiya Janata Party (BJP) has also weighed in. Spokesperson Manoj Mohapatra stated that the BJP-led state government would not permit any anti-people activities. He turned the tables on the BJD, questioning who had initially privatized power distribution and enacted the regulations allowing for ASD collections.

Tata Power Discoms Defend the Statutory Charge

The four distribution companies, which are controlled by Tata Power, held a press conference in Bhubaneswar to explain their position. Senior officials argued that the levy of ASD is a statutory requirement under the Electricity Act, 2003, and fully complies with OERC regulations.

They clarified the mechanism behind the deposit. The annual review adjusts security deposits based on the previous year's power consumption. Consumers whose usage decreased will see an adjustment in their bills, while those with increased consumption must pay more to maintain adequate coverage.

Gajanan Kale, chief of Tata Power's Odisha distribution business, emphasized that the process is designed to protect consumer interests. The security deposit earns 6.5 per cent annual interest, which is adjusted in electricity bills during the first quarter, he stated. He assured that these deposits are held as fixed deposits in banks, are refundable upon disconnection, and are not used for daily operations.

The companies revealed that in the 2024-25 financial year, they credited Rs 217.29 crore in interest to consumer bills across the state. They also warned that delayed payments of the ASD notifications would attract a 15 per cent annual surcharge.

Mounting Protests and Future Action

Despite the explanations from the utility companies, the discontent is palpable. Various power consumer forums are mobilizing and planning intensified protests in the coming days. The core of their argument is that the additional demand, coming amid general economic strain, is unjustified and burdensome.

The situation presents a significant challenge for the state administration, caught between regulatory mandates enforced by private discoms and the growing public resentment. The coming weeks will be crucial as consumer groups decide on the scale of their proposed agitation, and the OERC considers the appeals made by political parties.