Why is there a security deposit on my Gujarat electricity bill?
Your discom keeps a security deposit equal to two or three months of consumption charges. Every two years it checks the deposit against your last 12 months. If the shortfall is more than 10%, it asks for a further security deposit.
- Reviewed every two years
- Top-up: further security deposit
- Prepaid meters: no deposit
Check your deposit
How DGVCL / MGVCL / PGVCL / UGVCL (and Torrent Power) reviews the deposit
- The discom reviews the deposit of LT consumers once every two years.
- It uses your average consumption for the past 12 months.
- You can also ask the discom for a review.
- You must hold 3 months' consumption charges (bi-monthly billing) or 2 months' (monthly billing).
- Further security deposit = required deposit minus the deposit held.
- The discom does not ask if the shortfall is 10% of the existing deposit or less.
- You get 30 days from the notice to pay.
- If you pay late, you pay a surcharge of 0.25% per week.
- If you do not pay, the discom can disconnect supply.
If you hold more than needed
- If the excess is more than 10% of the required deposit, the discom adjusts it in your next bill.
- The discom refunds any balance by a single cheque or demand draft within 30 days.
Deposit for a new connection
- For a home, the deposit equals the consumption charges for 50 units for every 0.5 kW of applied load.
- The discom uses the tariff of the day. The minimum deposit is Rs 200.
- Consumption charges include fixed charges, FPPPA, electricity duty and other levies.
Interest and prepaid meters
- The discom pays interest at the RBI Bank Rate on 1 April of each year, or a higher rate that GERC sets.
- With monthly billing, the discom adjusts last year's interest in your May bill.
- With bi-monthly billing, the discom adjusts it in your May or June bill.
- Every bill must show the security deposit that you hold.
- The GERC deposit regulations do not mention prepaid meters for homes.
What we could not confirm
- We found no official notice of the current interest rate.
- Our research notes that section 47(5) of the Electricity Act bars a deposit for prepaid supply. Check with your discom.
- We found no official sample bill that shows the label for the further security deposit.
- The regulations do not say if you can pay in instalments.
Questions
How often can my Gujarat discom ask for more deposit?
For homes, once every two years. The discom bases it on your last 12 months of consumption.
Will they ask for a small shortfall?
No. The discom does not ask if the shortfall is 10% of your existing deposit or less.
Where can I see my deposit?
Every bill must show the security deposit that the discom holds.
When do I get the interest?
In your May bill with monthly billing, or your May or June bill with bi-monthly billing.
Sources
- GERC (Security Deposit) Regulations 2005, cl. 2.1(d), 4.1, 4.4(i), 4.10, 4.13
- GERC (Security Deposit) (Second Amendment) Regulations 2015, cl. 4.6, 4.9, 4.15
- GERC (Security Deposit) (Third Amendment) Regulations 2023, cl. 4.11
Read on 16 October 2026.
ebbillcalc is not part of any discom or regulator. The regulations and your discom have the final word.