Nagpur: Maharashtra State Electricity Distribution Company Limited (MSEDCL) has decided to refund ₹29.87 crore as interest on security deposits to low-tension (LT) electricity consumers in the Nagpur Zone for the financial year 2024–25. This amount will be adjusted directly in the electricity bills of eligible consumers.
Out of the total refund, ₹26.13 crore will be disbursed to 15.40 lakh consumers in Nagpur district, while ₹3.74 crore will go to 3.96 lakh consumers in Wardha district. Compared to the previous financial year, this year’s refund amount is higher by ₹2.09 crore. The refund is being provided as per the interest rates specified from time to time by the Reserve Bank of India (RBI), in compliance with guidelines issued by the Maharashtra Electricity Regulatory Commission (MERC).
Many consumers often wonder why security deposits are collected, whether they earn interest, and how they are used. MSEDCL clarified that security deposits are taken in the interest of consumers and used to support essential functions such as power procurement, transmission, distribution, maintenance, and administrative costs. Importantly, interest is paid on these deposits based on the rates prescribed by the RBI. Since the operations of MSEDCL are funded through electricity bills paid by consumers, timely payments ensure that the company can continue providing uninterrupted power supply.
The company also conducts an annual reassessment of security deposits based on electricity usage. If a consumer’s deposit is found to be less than the average bill amount of two months, MSEDCL issues a bill for the additional amount. Even if a security deposit was paid in the past, tariff revisions and increased electricity usage may result in a shortfall, requiring additional deposits. In cases where consumers have not paid the additional deposit, the shortfall is adjusted against the interest payable.
MSEDCL emphasized that the security deposit remains the consumer’s money and is refunded with interest when the electricity connection is permanently disconnected. The company has appealed to all consumers to promptly pay any outstanding additional deposits to avoid adjustments and to continue enjoying uninterrupted power services.
In terms of division-wise distribution, the highest refund amount in Nagpur district is being allocated to the Congress Nagar division with ₹6.74 crore for 2.84 lakh consumers, followed by Civil Lines division with ₹4.06 crore and Mahal division with ₹4.02 crore. Other divisions such as Katol, Umred, Savner, Mauda, Butibori, and two sections of Mahal division are also receiving significant refunds. In Wardha district, the highest interest amount of ₹1.89 crore is being refunded to 1.77 lakh consumers in the Wardha division, followed by ₹93.94 lakh to 1.18 lakh consumers in Arvi and ₹91.32 lakh to over 1 lakh consumers in Hinganghat.
In total, 19.37 lakh LT consumers across the Nagpur Zone are set to benefit from this ₹29.87 crore refund, further underscoring MSEDCL’s commitment to consumer-friendly and transparent operations.
