Additional Security Deposit (ASD) By BESCOM

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What is an Additional Security Deposit (ASD) by BESCOM?

BESCOM articleThe Bangalore Electricity Supply Company (BESCOM) recently released a 30-day notice to all BESCOM consumers demanding an additional amount as security deposit based on their previous fiscal bill payment, their plan and the consumed load. The ASD will be calculated every fiscal year and will attract an interest of 6 percent. However, the ASD is refundable and the consumer should pay it only in cash at the concerned branch offices but can pay the electricity bill online.

This act was implemented as per the Karnataka Electricity Regulatory Commission (KERC) 2007 norms, wherein if a consumer with a difference amount in the two-month minimum monthly deposit (2MMD) has a bill amount between Rs. 200 and Rs. 1,000, he should pay the readjustment amount to the licensee to avoid disconnection. BESCOM claimed there is a difference of Rs.96,570 between the existing deposit and the calculated MMD.

According to BESCOM, the licensee will review the adequacy of the security deposit amount of all the consumers in the first quarter of each year, based on the average consumption of the previous year. However, consumers with any objections should submit the application within a period of 7 days from the date of issue. A deadline of 15 days will be given to pay the revised amount to avoid disconnection. This rule has been in reviews for the past 5 years but has been effective from January 2014.

Why should a consumer pay the Additional Security Deposit (ASD) each year?

With more and more electrical appliances being used by consumers and the steep increase in the unit price of power each year, it is evident that if the power consumption increases, so does the billing amount. The ASD policy works as remuneration between the BESCOM’s security deposit and the consumer’s current billing figure, favouring BESCOM.

Every year in the month of March-April, an audit is carried out by BESCOM to collect the ASD, provided the ASD to be paid is more than Rs. 200 (domestic consumers) and Rs. 1000 (commercial consumers). In case of rental property, the ASD will be paid by the property owner or by both the landlord and the tenant through mutual consent. However, the ASD for common areas in an apartment should be paid by the association from the common funds.

How does the Additional Security Deposit (ASD) work?

As per the rule a licensee collects a security deposit amount at the time of a new connection. A standard amount will be fixed as an initial security deposit based on the consumer’s required amount of power. This amount will further be calculated based on the average bill amount of the corresponding months (as per the monthly billing/bi-monthly billing) from the following year.

One of the major reasons for the implementation of the Additional Security Deposit (ASD) was to protect the BESCOM from consumers who fail to pay the electricity bills. Also since a consumer was generally given a period of 30 days to pay his electricity bill along with a grace period of 15 days, the connection was still not disconnected.

What is the payment procedure of the Additional Security Deposit (ASD)?

A consumer can check for his ASD details on the bottom of the monthly electricity bill receipt. The mode of payment for the ASD will be just like the payment of the regular electricity bill (online/BESCOM office). When the consumer pays the additional amount, it will automatically be considered as the ASD. However, it is advisable that if the consumer is paying the bill at the venue, he should inform the staff about it.

* ASD can be paid in cash/demand draft (DD)/ cheque or bank guarantee.

* ISD (Initial Security Deposit) can be paid in cash/demand draft (DD)/bank guarantee.

Can the ASD be refunded?

Yes. The ASD will be refunded if a consumer’s meter is terminated. There are very few instances where a meter is terminated or is surrendered; hence chances of ASD refunds are very minimal.

      
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52 thoughts on “Additional Security Deposit (ASD) By BESCOM

  1. raju

    I Will pay the ASD Amount thru DD – please tell the Favouring of DD and it is bescom office of yelahanka

    thank you

    Reply
  2. Raja

    I received the bill with Consumption charges for the June month is Rs. 620 and there is Interest on ISD/ASD of -Rs. 258. The total bill is Rs. 363. Could you please explain on this. Now What amount should I Pay.

    Reply
    1. admin Post author

      Hi Raja

      As consumption of units was low, from the previous ASD (Additional Security Deposit), Electricity Department had refunded Rs. 258/- and adjusted with your current electricity Bill. Thus the amount to be paid by you is Rs. 363/- (Actual consumption minus refund of ASD).

      Reply
    2. LP REDDY

      Your previous financial year had consumed less power. the amount Rs 258/- had credited in your bill on account of Additional security deposit as negative. you have to pay Rs 363/- only.

      Reply
  3. Kavya

    When consumption is made by the tenant why should the owner.you have to make two divisions one is security deposit and consumption amount .When tenant is using too much of power why should owner pay.If tenants are on lease for three years or more they are using the power and why should owner pay.offcourse we ready to pay for security deposit for one year but it is linked to consumption .So pls make division for tenant and owner .

    Reply
    1. admin Post author

      Hi Kavya

      The decision of who will pay the additional security deposit is to be mutually discussed between owner & the tenant and agreed upon. BESCOM department is not seeing who is staying on the property and only checking on the consumption of units by the said property and based on this decides to rise/payback on the Security deposit.

      Reply
  4. Ismail Mohd

    Dear last in March adit team is visited my house load calculated ok it’s agree after that they have you have using more power need to take additional load and penalised we have paid after that immediately we have applied for adtional load it’s taken time for EB department 1month to process then the month of may they have. Given again ASD amount in our bill it’s to chiting with customers.plz Plz reply me

    Reply
    1. admin Post author

      Dear Ismail

      There can be due time line by BESCOM on approving additional load on your meter. And till that time, based on usage the ASD will be added. However, if the timeline exceeds, raise a complaint in BESCOM and keep a track on with the complaint number. If this is not getting resolved after this, please visit BESCOM office with due details and meet the Assitant Engineer (AE) of your jurisdiction and raise the complaint. Hope that resolves the issue.

      Reply
  5. Ravi N

    FIRST OF ALL I REALLY DON’T UNDERSTAND WHAT IS SECURITY DEPOSIT. BESCOM CLAIMS THAT THEY WILL REFUND WHEN YOU TERMINATE YOUR METER, WHO THE HELL OR FOR WHAT PURPOSE WOULD ONE TERMINATE THE METER. TILL THE BUILDING COLLAPSES???
    SUCH AN EVENT OF TERMINATING THE METER WILL IT EVER OCCUR DURING THE LIFE TIME?
    OR IS IT IF I INTEND TO SELL MY FLAT, THEN I WILL TERMINATE THE METER AND GET MY REFUND AND THEN ASK THE BUYER TO APPLY FOR A NEW METER?
    THIS SEEMS UTTER NONSENSE, CLEARLY SHOWS CHEATING

    Reply
    1. admin Post author

      Hi Ravi

      Security deposit by BESCOM is taken towards two months advance payment for electricity bill units consumed. The additional security deposit is charged if the consumption limit increases and similarly they do refund certain amount (which gets adjusted with the electricity bill), if there is reduced consumption. This security deposit is refundable if one surrender the meter. This is as per Act issued by the respective state and governed by that.

      Reply
  6. Amitesh

    I got paper bill for ASD payment and the amount is 780 INR however when I went to pay online by selecting ASD option I am seeing amount as 310 INR.
    What should I do now? Which one is wrong or which one I should pay?

    Kindly help!

    Reply
  7. Ravi Kesavan

    Online payment had stopped due to some server error. I tried again and the payment has done. After I found there is a double payment has happened. If the additional amount will carry forward for next payment? Or amount will refund?

    Reply
    1. admin Post author

      Hi Ravi,\n\nIdeally this should be returned back. Please check in your next bill details and if not, then visit the local BESCOM office with the Bill and payment transaction details copy and file complaint towards the refund of the additional payment.

      Reply
  8. Amarnath Nayak

    Is ASD a penalty for the user or is it just an amount to avoid any losses to the HESCOM such as not paying the bill for two months and then dis connecting it?\r\nPlease clarify.

    Reply
    1. admin Post author

      Hi Amarnath\n\nASD (additional security deposit) is only a deposit collected to avoid losses to BESCOM in the event of non payment of bills. This ASD is calculated on the basis of current usage and if due to higher tariff or higher usage whichever may be the case, if the average monthly bill has gone up, then the ASD will also go up. If on receiving a notice for ASD you need to pay it within the deadline. Non payment can result in disconnection.

      Reply
  9. jabeen taj

    good afternoon.\r\nsri/madam.\r\n as i am staying at lease house since 3 years and we are about to vacant d houose by this year and my owner asked me to pay asd amount by self & already i have paid asd & lost the bill at march month and again my owner had called me when i was not at house by complying that due to late paying asd amount d whole building current has been stop and no current at building.. please suggest me that should we pay asd again or its owner risk.. \r\n thanking you.

    Reply
    1. admin Post author

      Hi Jabeen Taj,\n\nASD is additional security deposit that is collected as a security towards non-payment or delayed payments by BESCOM. This ASD is likely to change based on your current billing. In the event your billing has increased by 20%, then a proportionate increase in ASD is collected by BESCOM and if your billing reduces then the additional ASD is also adjusted against bill amount.\n\nNormally, the owner has to be pay the ASD and he would have paid it at the time of getting the electricity connection. But as consumption and tariff changes the ASD changes and it is difficult for the owner to keep tab of this since you are paying the electricity bill on a monthly basis. Hence, it is suggested that the ASD should be paid by you and that can be repaid back by the owner at the time of your vacation (since you are not carrying away that electricity connection with you).\n\nBut this is a matter to be negotiated between you and the owner.

      Reply
    1. admin Post author

      Hi Sri\n\nASD is calculated based on consumption. If the consumption increases than the average security deposit held with BESCOM, the same is charged again from the user.

      Reply
        1. admin Post author

          Hi Sri,\n\nRequest you to consult with local BESCOM Office with all your monthly bills. The ASD calculation is based on your maximum usage for two months and if the same reduces, BESCOM would deduct from the consumption and should have returned back to you (during billing cycle).

          Reply
  10. Rahmat

    As I understand.. the ASD amount will be adjusted in the monthly electricity bill in case if the usage doesn’t comes back below the defined limit. Will this amount get adjusted in the same month’s bill when the electricity is usage is controlled?

    Reply
    1. admin Post author

      Hi Rahmat,\n\nThe adjustment will happen after seeing the usage over a period (as decided by BESCOM), mostly happens after seeing whether there is a continuous drop of usage charges for a year and refund will be applicable accordingly.

      Reply
  11. Morton

    While BESCOM is justified in asking for the security deposit and the additional security deposit, there does not seem to have been sufficient communication from them in the past to intimate people about what it really is. This gap in communication has probably led to people misunderstanding the reason for the security deposit and therefore being unwilling to pay the amount.

    Reply
  12. Raveendra Patil

    I have taken house for lease . last month I have got extra amount in the monthly bill as ASD. So I asked my owner he told me you have used the more unit so that BESCOM has sent penalty and you only have to pay this amount. please guide me who has to pay the ASD.

    Reply
    1. admin Post author

      Hi Raveendra,\n\nThe ASD’s are calculated on based on electricity consumption on previous months. If the consumption increases, BESCOM will charge extra ASD and similarly if the same decreases, BESCOM will be returning back the deposit accordingly (adjusted with the BESCOM bill). While the electricity bill payment is the responsibility of the tenant, the ASD is a refundable / adjustable deposit so it usually becomes the responsibility of the owner since the tenant is not a permanent resident or owner of the house. However, since the ASD payments have become frequent and more dynamic according to usage, you can have an understanding with the owner that you will pay it but it will be returned back to you at the time of vacation. This is done through mutual agreement between owner and tenant. ASD is like a caution deposit based on your actual usage and hence it should be refunded back to you when you move out.

      Reply
  13. Sunil

    Hi \r\n\r\nI have a query. This time my BESCOM bill came as negative. it shows some electricity charges, then shows some amount which looks like refund as interest on ISD/ASD. That way the actual amount is coming as negative. What should I do.\r\n\r\nRegards\r\nSunil

    Reply
    1. admin Post author

      Hi Sunil,\n\nYou don’t need to make the payment and in next Bill the same will again get adjusted.

      Reply
  14. Mamatha Gopal

    Hi, \r\nWe have received a circular from BESCOM, directing us to pay Rs.610/- towards ASD within 30 days from the period of issue of the said letter. We are imposed to pay the ASD amout by the house owner. Kindly let us know who should pay the additional security deposit, Tenant or Landlord?

    Reply
    1. admin Post author

      Hi Mamatha\n\nThe ASD’s are calculated on based on electricity consumption on previous months. If the consumption increases, BESCOM will charge extra ASD and similarly if the same decreases, BESCOM will be returning back the deposit accordingly (adjusted with the BESCOM bill). While the electricity bill payment is the responsibility of the tenant, the ASD is a refundable / adjustable deposit so it usually becomes the responsibility of the owner since the tenant is not a permanent resident or owner of the house. However, since the ASD payments have become frequent and more dynamic according to usage, you can have an understanding with the owner that you will pay it but it will be returned back to you at the time of vacation. This is done through mutual agreement between owner and tenant. ASD is like a caution deposit based on your actual usage and hence it should be refunded back to you when you move out.

      Reply
  15. vikas jadhav

    i still did not understand the calculation of ASD.\r\nI have got a notice yesterday 08/07/2015 to pay ASD.My April bill was Rs 780 and May bill was Rs 1000.Does it mean that I have to pay Rs 900 (average) as ASD ? kindly assist

    Reply
    1. admin Post author

      Hi Vikas,\n\nThe calculation of ASD is done on the basis of 2 months bills if it is monthly billing and 4 months billing if it bi-monthly billing. So if your billing is monthly, the rough calculation is the twice of the average of the 2 months billing in question that has been taken for calculation of ASD.\n\nThis means BESCOM would like to hold atleast 2 months of your billing as ASD to ensure that in the event of non-payment and disconnection, it will still not be at a loss. This is akin to banks demanding that a minimum balance be maintained, else levying a charge on it. Without taking into account your historical billing over the year and what your ASD was previously, it is hard to tally the calculation to the tee.\n\nYour demand notice will suggest what you have to pay. And it is best to go to BESOM and request for clarification on the calculation and pay up to avoid default and confusion.

      Reply
  16. Ramakrishnan

    I have received a notice today ( without Date) from BESCOM to pay an ASD of Rs.410/- with details of amount paid, month wise, during 2014. I have two issues on this -\r\n 1. I was asked to pay an ASD of Rs.540/- in February’15 when I went to pay my usual bill amount. Now again a notice to pay Rs 410/-.\r\n 2. Comparison of month wise details provided in the notice does not agree with the payment I have made. The figures in the notice are with decimals – – like Rs..925.25, while the bill is in whole numbers – like Rs.1030.\r\n\r\nCan you clarify the need for raising ASD demand in such a short intervals, and the reason for difference in the month wise details provided in the notice and actuals.

    Reply
    1. admin Post author

      Hi Ramakrishnan,\n\nRaising of ASD is based on consumption that happened in previous months and that is as per regulations of BESCOM. If the consumption increases, further, BESCOM can ask for another ASD from your end after its review. If consumption decreases, the same will get adjusted also on its review. \n\nRegarding the bill difference, tax amounts are not considered in the ASD calculation. For any further clarification, please visit nearest BESCOM office for better clarity.

      Reply
  17. N Ramesh

    How do I know how much interest is adjusted on previous ASD? When ASD is calculated why no details are disclosed? What is the rate of interest on ASD?

    Reply
    1. admin Post author

      Hi Ramesh,\nPlease consult BESCOM office on the same. They can provide better clarity on this.

      Reply
  18. Gopal

    Dear Team,\r\n\r\nI pay my Electricty Bills online.\r\nCan I pay Additional Security Deposit(ASD) also online? \r\n\r\nI do not see any option of paying ASD online.\r\nCan you please guide me with this respect?\r\n\r\nBest Regards,\r\nGopal

    Reply
    1. admin Post author

      HI Gopal,\n\nAs per circular issued by BESCOM, ASD cannot be paid online and need to be paid at BESCOM counter or Bangalore one centres. If you face any difficulty in making the payment, you can let us know at services@homeshikari.com or call us at 080-67684444. We provide service for paying utility bills.

      Reply
  19. Abhishek

    I still did not understand the calculation of ASD.\r\nI have got a notice yesterday 22/06/2015 to pay ASD.My April bill was Rs 800 and May bill was Rs 1000.Does it mean that I have to pay Rs 900 (average) as ASD ? kindly assist

    Reply
    1. admin Post author

      Hi Abhishek,\n\nWhile taking connection of new meter, one need to pay a fixed fees (as security deposit). As the bill gets generated and bill amount increase more than security deposit held, ASD is getting calculated. Below is the Gazattee Notification by BESCOM on collection of ASD. For better clarity, you can contact BESCOM centre.\n\nKarnataka Electricity Regulatory Commission, Bangalore.\nNotification No: D/07/7 dated: 1.10.2007\nK.E.R.C. (Security Deposit) Regulations, 2007.\nNotified in Karnataka Gazette dated 11.10.2007\n6. Additional Security Deposit (ASD)\n6.1 General Review\nThe Licensee shall review the adequacy of the amount of Security Deposit in respect of all Consumers in the first quarter of every year based on the average consumption for the preceding year.\n6.2 Demand notice for Additional Security Deposit\nBased on such a review, demand for shortfall in Security Deposit or refund of excess Security Deposit shall be made by the Licensee. However, the Licensee can hold Security Deposit up to Rs.3000/- at the credit of any Consumer and refund the excess Security Deposit when it is over and above Rs.3000/-.\na) In the case of existing Consumers, from whom 3 MMD had been collected by the Licensee where the monthly billing cycle is in vogue:\n(i) Additional Security Deposit shall not be collected till deposit held at credit falls short of the average bill amount corresponding to two months (2 MMD) in case of monthly billing and three months (3 MMD) in case of bi-monthly billing calculated based on the consumption in the preceding year.\n(ii) If the deposit held is more than 120% of the average bill amount corresponding to two months (2 MMD) in case of monthly billing and three months (3 MMD) in case of bi-monthly billing of the preceding year, the Licensee shall refund excess deposit held over and above 120% of the average bill amount corresponding to two months (2 MMD) in case of monthly billing and three months (3 MMD) in case of bi-monthly billing of the preceding year, with in 12 months of the notification of these Regulations in the first instance and during the first quarter in the subsequent years, through adjustments in the energy bill of the Consumer. However, the limit of Rs.3000/- for refund of the excess Security Deposit as per clause 6.2 shall be adhered to.\nb) In case the Licensee fails to refund the excess Security Deposit as per Clause 6.2(a)(ii) of these Regulations, penal interest at 1 % per month on the amount of excess Security Deposit for actual days of delay shall be payable to the Consumer for the delay beyond the specified period.\nc) The bill amount for the purpose of these Regulations shall include only FC/DC plus EC and not any other charges like the Electricity Tax, arrears, audit short claim, interest, back billing charges, penal charges for excess consumption / demand.\nd) Additional security deposit shall be demanded when the deposit held falls short of the average bill amount corresponding to two months (2 MMD) in case of monthly billing and three months (3 MMD) in case of bi-monthly billing calculated based on the consumption in the preceding year. However, if the shortfall is less than Rs.200/- in case of LT categories and Rs.1000/- in respect of HT installations, the same need not be demanded.\ne) Where the Consumer is required to pay Additional Security Deposit, the Licensee shall serve a minimum 30 days’ notice containing necessary particulars effective from 1st day of April of that year. The notice shall indicate that in case the ASD is not paid within 30 days, the installation shall be liable for disconnection. In case the Consumer has no objections on the amount demanded, the additional Security Deposit shall be paid within 30 days of the date of demand. In case the Consumer has any objections for the said demand, he may file his objections within 7 days from the date of receipt of such demand notice. The amount of ASD demanded may be revised based on the information, if any, furnished by the Consumer. The Licensee shall furnish all the necessary details to justify the claim of ASD within 7 days of the receipt of objections. In case of revised demand, the payment shall be made within 15 days of the date of revised demand.\nf) The refund / recovery amount shall be rounded off to nearest Rs.10/-.\n6.3 Disconnection for non-payment of Security Deposit for the electricity supplied.\nIf a Consumer fails to pay the Security Deposit demanded by the Licensee in terms of clause 6.2 (d), the Licensee shall disconnect the power supply to the installation without further notice. Any arrears due on this account shall be deemed to be arrears of electricity charges.\n7. Mode of Payment of Security Deposit\ni. ISD shall be paid in the form of cash / demand draft (DD)/Bank Guarantee drawn in favour of the Licensee.\nii. ASD shall be paid in the form of cash / demand draft (DD) /Cheque /Bank Guarantee drawn in favour of the Licensee.\n8. Interest on Security Deposit\nThe Licensee shall pay interest on Security Deposit (ISD, ASD & Meter Security Deposit) of the Consumer as specified under K.E.R.C. (Interest on Security Deposit) Regulations,\n2005. However, this Clause is not applicable to the Security Deposit paid in the form of Bank Guarantee.\n9. Refund of Security Deposit\nThe Licensee, on termination of the agreement by either party shall refund ISD, ASD & Meter Security Deposit (if any) after adjustment of dues, if any, within two months from the date of termination failing which interest at 1 % per month shall be payable on the ISD, ASD & Meter Security Deposit for the actual days of delay.

      Reply
  20. p haridas

    I received a circular No Bescom/ASD/14001616/1L04 directing me to pay Rs 740/- towards ASD within 30 days of issue of the said letter. The letter I received does not have any date so how can I know the date of issue of the same? Even then when I went to the BESCOM Cash counter at Basavanagar, the cashier says I have to pay Rs 970/- instead of Rs 740/- as mentioned by BESCOM in the letter issued by AEE (EL). What I should do and to whom should I contact. Can I pay the amount online/by crossed cheque at Bangalore One? Pleasse guide me.

    Reply
    1. admin Post author

      Hi Haridas, \n\nIts an error from BESCOM that they did not issued any dates on this notification. Cash Counter asked for additional amount based on the Electricity bill generated on the same. You can contact the undersigned person of the notification to get better clarity on the amount to be actually paid.

      Reply
  21. Mark

    Can some one please help me on how to calculate the ASD of bescom as i was not able to understand the calculation of the ASD notice i received a few moments ago.

    Reply
    1. admin Post author

      Hi Mark,\n\nAt the time of issuance of new connection security deposit is collected by BESCOM from all its consumers. The same is collected based on the amount of power that a consumer need. From next year onwards, this amount is calculated on the average bill amount of last two months billings.\n \nNow, the collection of the ASD is based on Total Bill Amount for year x 60 days/365 days.

      Reply
  22. Uday

    1. who should pay the adiitional security deposit, Tenant or Landlord?\r\n2.That ADS amount will be refunded or not\r\n3.Is there any written document that ADS is payable by Landlord or Tenant

    Reply
    1. admin Post author

      HI Uday,\n\nDeposits for the purpose of residential rentals are always borne by the landlord and only the electricity charges based on consumption is paid by the tenant. however in the case of large long term corporate leases, the ASD can be payable by tenant (as mutually agreed between tenant and landlord) and has to be refunded to tenant when he vacates the premises.

      Reply
    1. admin Post author

      Hi Shivaraj,\nEC means Energy Consumption during the month, FC means fixed charge (minimum amount per month, which consumer has to pay even if no electricity is consumed during the month) and FAC is Fuel Adjustment Charges (The prevailing tariff for energy is based on average cost of fuel consumed for Generation but the actual cost of fuel may vary from this cost. To Account for this difference in price a FAC is levied).

      Reply
  23. Mars

    If usage of Electricity for 1BHK is more than expected… say the tenent is day night watching TV and Fridge, geyser Ovan etc in contant usage along with friends etc etc.. then Obviusly bill will be more… then Why should Landlord pay more deposit than expected

    Reply
  24. MANOJ KUMAR

    Owner has to pay ASD not the tenant .if tenant is vacating the premises the tenant will not get back the money which he or she had paid as ASD for somebody’s property

    Reply

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