Tata Power’s additional security deposit notices trigger consumer outrage in Odisha

Tata Power’s recent issuance of additional security deposit demand notices sparked widespread resentment among electricity consumers across Odisha. Several consumers have reported receiving SMS alerts asking them to deposit additional amounts ranging between Rs 1,500 and Rs 2,000 within 30 days.

The move has drawn strong opposition from consumer associations, which have questioned both the timing and justification of the demand. Many consumers say they were not informed in advance about any review of security deposits and remain unclear about the basis on which the additional amounts have been calculated.

Residents in Bhubaneswar and other regions have confirmed receiving such notices. One consumer, Sweta Samal of Bhubaneswar, said she was directed to deposit the additional security amount within a month. Meanwhile, the Salipur Electricity Consumers’ Association has openly opposed the decision, warning of protests and alleging that the added financial burden on consumers is unjustified.

"We were shocked to get this month's electricity bill. Why they are asking for extra security deposit? We are paying our monthly electricity bill. Why we will pay the extra amount? It is becoming a burden on us," said Sweta Samal, a consumer in Bhubaneswar.

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" We will protest against the fleecing of consumers under the pretext of collecting an additional security deposit by Tata Power. We will formally begin preparations for the protest. The company must put an end to this harassment of consumers," said Nanda Kishore Bhuyna, a member of Salipur Electricity Consumers’ Association.

Under existing norms, consumers are required to pay a security deposit at the time of obtaining an electricity connection, calculated on the basis of the sanctioned load. As per Odisha Electricity Regulatory Commission (OERC) regulations, the deposit is generally equivalent to two months’ electricity bill. The rules also allow reviewing security deposits after an annual tariff revision by reassessing a consumer’s electricity consumption over the previous 12 months.

If the revised calculation shows that the required security deposit exceeds the existing deposit by more than 10 per cent, the consumer can be asked to pay the difference. If the variation is within 10 per cent, the amount is adjusted in subsequent electricity bills.

However, consumers and associations are questioning why Tata Power carried out a security deposit review despite there being no electricity tariff hike in the last four years. Concerns have also been raised over the lack of prior intimation to consumers and the absence of any specific agreement regarding additional security deposits at the time of providing electricity connections.

Adding to the controversy, a case related to the collection of large sums from consumers through similar additional security deposit notices issued in previous years is currently pending before the OERC. Despite this, Tata Power has once again issued fresh notices this year.

"Under sections 53 and 54, it has been mentioned that if the tariff increases in a year, collecting an additional security deposit will be due in the next year. Tariffs have not been increased for the last four years. What was the need to review then?" said Anand Mohapatra, a power sector analyst.

Tata Power has not offered a direct response to consumer concerns but, in a press release, clarified that the additional security deposit is not linked to the installation of smart meters. The company maintained that the process has been undertaken in accordance with the Electricity Act, 2003, and OERC regulations.