What is security deposit?
A security deposit is money the discom holds against your future bills; it pays you interest on it. Also called SD, ACD, additional consumption deposit, additional security deposit, consumption deposit.
- Plain English
- Official sources
- Bill terms A–Z
Security deposit on your bill
The discom can ask for a reasonable security before it gives supply. The commission sets the amount by regulation.
Many states review the deposit every one or two years. If your bills grew, the discom asks for an additional deposit.
Example (Tamil Nadu, bi-monthly billing): average monthly bill Rs 800 x 3 = Rs 2,400 required. If you hold Rs 1,500, you pay Rs 900 more.
The discom must pay interest at the bank rate or more. The interest is credited in your bill or deposit account.
You can ask for a refund of the deposit when the connection ends.
Security deposit rules by state
| State or UT | Discom | What the top-up is called |
|---|---|---|
| Andhra Pradesh | APSPDCL / APEPDCL / APCPDCL | Additional security deposit |
| Delhi | BRPL / BYPL / TPDDL | Additional security deposit |
| Gujarat | DGVCL / MGVCL / PGVCL / UGVCL (and Torrent Power) | Further security deposit |
| Karnataka | BESCOM (and other Karnataka ESCOMs) | Additional security deposit (asd) |
| Kerala | KSEB Ltd | Additional security deposit |
| Madhya Pradesh | MPPKVVCL / MPMKVVCL / MPPaKVVCL | Additional security deposit (asd) |
| Maharashtra | MSEDCL | Additional security deposit |
| Rajasthan | JVVNL / AVVNL / JdVVNL | Additional security |
| Tamil Nadu | TNPDCL | Additional security deposit |
| Telangana | TGSPDCL / TGNPDCL | Additional security deposit |
| Uttar Pradesh | UPPCL discoms (DVVNL, MVVNL, PVVNL, PuVVNL, KESCO) | Additional security deposit |
| West Bengal | WBSEDCL / CESC | Replenishment of security deposit |
Related terms
Official sources
- Electricity Act, 2003 (as amended; copy hosted by the Tripura High Court), s.47(1)
“to give him reasonable security, as may be determined by regulations,” - Electricity Act, 2003 (as amended; copy hosted by the Tripura High Court), s.47(4)
“The distribution licensee shall pay interest equivalent to the bank rate or more, as may be specified”
Read on 17 October 2026. Your State regulator’s rules and your discom’s bill have the final word.