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Why is there a security deposit on my Karnataka electricity bill?

Your ESCOM keeps a security deposit against two or three months of charges. Each year it compares the deposit with last year's bills. If there is a shortfall of Rs 200 or more, it asks for an additional security deposit (ASD).

  • Reviewed every year
  • Top-up: additional security deposit (ASD)
  • Prepaid meters: no deposit

Check your deposit

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How BESCOM (and other Karnataka ESCOMs) reviews the deposit

  • The ESCOM reviews the deposit in the first quarter of every year.
  • It uses your average consumption for the preceding year.
  • The required deposit is 2 times the average monthly bill (monthly billing) or 3 times (bi-monthly billing).
  • The average uses fixed and energy charges only. It leaves out tax, arrears, interest and penal charges.
  • ASD = required deposit minus the deposit held, rounded to the nearest Rs 10.
  • The ESCOM does not ask for a shortfall of less than Rs 200.
  • You get at least 30 days' notice. The demand takes effect from 1 April.
  • You can object within 7 days. You pay any revised demand within 15 days.
  • If you do not pay within 30 days, the ESCOM can disconnect without further notice.

If you hold more than needed

  • The ESCOM refunds the deposit above 120% of the required amount through your energy bill in the first quarter.
  • The ESCOM may keep up to Rs 3,000 and refund only the amount above that.
  • A late refund earns penal interest of 1% per month.

Deposit for a new connection

  • The initial deposit covers 2 months of estimated charges for monthly billing, or 3 months for bi-monthly billing.
  • The estimate includes fixed charges, energy charges and fuel surcharge.
  • For a home, the ESCOM estimates 45 units per kW of sanctioned load per month.
  • Each ESCOM must publish a ready reckoner of deposit amounts.
  • Some households have a different rule.

Interest and prepaid meters

  • The ESCOM pays interest at the Bank Rate on 1 April of the year.
  • It credits the interest in the first quarter of the next year against your charges.
  • That month's bill shows your deposit details.
  • Interest applies to the initial deposit, the ASD and the meter deposit, but not to a bank guarantee.
  • The ESCOM collects no deposit for supply through a prepaid meter and refunds any existing deposit.

What we could not confirm

  • We found no official notice of the interest rate for 2026-27.
  • We did not find the BESCOM ready reckoner amount per kW for homes.
  • The regulations do not say if you can pay the ASD in instalments.
  • KERC has a draft 2026 Electricity Supply Regulation out for comment. It may change these rules.
  • We found no official BESCOM sample bill that shows the ASD label.

Questions

When does BESCOM ask for ASD?

In the first quarter of each year, after it compares your deposit with last year's average bill. It skips a shortfall under Rs 200.

Can I object to the ASD notice?

Yes. You can object within 7 days. You pay any revised amount within 15 days.

When do I get excess deposit back?

The ESCOM refunds the amount above 120% of the required deposit through your bill in the first quarter.

What happens if I do not pay ASD?

The notice tells you that the ESCOM can disconnect if you do not pay within 30 days.

More tools

Karnataka bill calculatorWhere to complain in KarnatakaOther states

Sources

Read on 16 October 2026.

ebbillcalc is not part of any discom or regulator. The regulations and your discom have the final word.