Draft Himachal Pradesh Electricity Regulatory Commission (Security Deposit) (Third Amendment) Regulations, 2020

Feb 28, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Himachal Pradesh Electricity Regulatory Commission (HPERC) on February 15, 2020, issues the draft Himachal Pradesh Electricity Regulatory Commission (Security Deposit) (Third Amendment) Regulations, 2020 to incorporate certain amendments in the HPERC (Security Deposit) Regulations, 2005. 

The followings are the amendments made under the HPERC (Security Deposit) Regulations, 2005:-

 Under Regulation 4 related to “Security deposit for the supply of electricity”,

• The applicant for a new electricity connection or additional load shall, as a precondition to release of connection or additional load, deposit with the distribution licensee initial security for the connected load (in case of connections covered under single part tariff) and for the contract demand (in case of connections covered under two part tariff), at the rates worked out as per Regulation 5.

• The consumer shall maintain with the distribution licensee an amount equivalent to the average bill (excluding arrears but including late payment surcharge, if any) for (n+1.35) months based on the bills raised in relation to the period of twelve billing months (April to March) of the immediately preceding year.

• The amount payable towards security shall be in the form of cash or demand draft (DD) drawn in favour of the licensee, provided that where the amount payable towards security exceeds Rupees 25 lacs, the consumer may opt to furnish the security in the form of Bank Guarantee.

 Regulation 5 related to “Initial security deposit” shall be substituted stating that the distribution licensee shall recover and the applicant shall pay the initial security deposit towards the electricity to be supplied to him at the rate prescribed at Regulation 5(2) for each KW and kVA.

 Regulation 6(1) related to “Review and payment of additional security deposit for the electricity supplied” shall be substituted, stating that the distribution licensee shall, on first day of July of each year or soon thereafter, check the adequacy of the security deposit recovered by it from the each consumer and shall issue demand notice for the additional security deposit. The distribution licensee may carry out special review in relation to individual consumers even more than once in a year on the basis of average billing for 12 months immediately preceding the month in which such additional review is made. The demand for shortfall will be made by the licensee provided that if the shortfall is less than Rupees 500/- of the existing security deposit, no demand shall be made by the licensee. The amount of additional security deposit to be demanded in any period of three months shall not exceed 30% of the average monthly bills raised in relation to the period of twelve billing months (April to March) of the immediately preceding year.

 Regulation 8 related to “Refund of security deposit” has been substituted, stating that in case of permanent reduction of connected load and contract demand, the total amount of security deposit already recovered from that consumer shall be apportioned against the security deposit for the balance connected load or contract demand, as the case may be, worked out at the rates of initial security deposit as applicable for FY 2020-21 or any subsequent period encompassing the effective date of such reduction and the balance amount of security deposit already recovered, if any, shall be refunded to that consumer after adjusting the outstanding dues recoverable from him.

HPERC invites objections and suggestions, if any, on the draft amendment regulations from all the persons likely to be affected thereby within 21 days from the date of publication of this notification in the Rajpatra, Himachal Pradesh. The objections and suggestions, if any, should be addressed to the Secretary, Himachal Pradesh Electricity Regulatory Commission, Vidyut Aayog Bhawan, Block No. 37, SDA Complex, Kasumpti, Shimla-171 009.

[Notification No. HPERC/414/(Security Deposit)]


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