Automatic Interest Adjustment on Electricity Security Deposits Coming to South Haryana
Residents across South Haryana, particularly in Gurgaon, can anticipate a welcome reduction in their electricity bills during the first billing cycle of the upcoming financial year. This development follows a significant announcement from the Dakshin Haryana Bijli Vitran Nigam (DHBVN) regarding the automatic adjustment of interest accrued on consumer security deposits.
DHBVN Mandates 6.5% Annual Interest Payment
The discom has officially declared that it will pay a 6.5% annual interest rate on Consumption Security Deposits (CSD) and staff security deposits for the 2025–26 period. This directive was formalized through an order issued by DHBVN Managing Director Vikram Singh, aligning with the established regulations set forth by the Haryana Electricity Regulatory Commission (HERC).
What is a Consumption Security Deposit? CSD is an amount collected from consumers when they apply for a new electricity connection. It is calculated based on an estimate of two months' electricity consumption. This deposit serves a dual purpose: it acts as a financial safeguard for the utility company against potential unpaid bills while simultaneously ensuring an uninterrupted power supply to the consumer. The security amount is not static; it undergoes periodic review and revision in response to changes in individual consumption patterns.
Automatic Adjustment to Enhance Transparency and Trust
A senior DHBVN official clarified the process, stating, "CSD is collected according to the direction of HERC. On the advance collected by the discom, consumers will receive annual interest, which will be adjusted directly in their electricity bill." Power officials have noted that a considerable number of consumers remain unaware that their security deposits accumulate interest over time.
The new system of mandatory automatic adjustment is poised to bring several benefits. "It is expected to improve clarity, reduce billing disputes, and enhance overall trust in the billing processes," explained an official. Under the existing HERC framework, distribution companies (discoms) are obligated to pay interest on these deposits and credit it to consumers' bills. DHBVN has now concretely fixed this interest rate at 6.5% for the coming year.
The credited interest will appear automatically in the very first electricity bill of the next financial year, effectively lowering the total amount payable by the consumer.
Strict Enforcement and Consumer Protection Measures
To ensure timely compliance, DHBVN has instituted a strong consumer-protection measure. "Any delay in the interest adjustment will attract a penal interest of 18% per annum," stated a discom official. This penalty is designed to enforce accountability and prompt action from the utility.
All field officers within DHBVN have received strict instructions to implement the revised norms without exception. Concurrently, with the issuance of this new order, a previous sales circular has been withdrawn with immediate effect, paving the way for uniform enforcement across the discom's operational areas.
Addressing Resident Concerns and Historical Context
The move comes against a backdrop of resident grievances regarding security deposits. Residents like Pradeep Sharma from Sector 49 in Gurgaon have voiced concerns, stating, "We had already deposited the security amount to the discom at the time of taking the electricity connection. They again took an advance security deposit. Despite all these payments, we continue to face poor quality of power supply."
A group of residents had previously escalated the issue, meeting with the power minister and raising complaints on platforms like the CM Window and other public forums. In response, officials have clarified the rationale behind the deposit reviews. They explained that while the initial security deposit is collected during the new connection process, "over time, the load capacity has increased manifold. This is why HERC has made it mandatory to review the consumption security deposit annually based on the average billing for the previous financial year. Any excess or deficient amount is then adjusted in the subsequent bills."
This systemic update by DHBVN represents a significant step towards greater financial transparency and consumer rights in South Haryana's power sector, directly impacting household budgets from the next fiscal year onward.
