Why is there a security deposit on my Kerala electricity bill?
KSEB keeps a security deposit equal to two or three times your average monthly bill. Each April to June it checks the deposit against last year's use. If there is a shortfall, it asks for an additional security deposit.
- Reviewed every year
- Top-up: additional security deposit
- Prepaid meters: no deposit
Check your deposit
How KSEB Ltd reviews the deposit
- KSEB reviews the deposit in the first quarter (April to June) of each financial year.
- It uses your consumption from April to March of the previous year.
- It prices your average monthly use at the tariff on the date of the demand.
- The required deposit is 3 times the average monthly bill (bi-monthly billing) or 2 times (monthly billing).
- Additional security deposit = required deposit minus the deposit held.
- KSEB gives you 30 days' notice to pay.
- KSEB does not revise a connection less than one year old at the start of the next year.
- If you do not pay, KSEB can disconnect supply.
If you hold more than needed
- KSEB refunds the excess by adjustment in a maximum of two bills.
- If an amount is still due after two billing cycles, KSEB must pay it by digital transfer.
- A late refund earns interest at the bank rate.
Deposit for a new connection
- For a new connection, KSEB computes the deposit from your connected load.
- Deposit = load x load factor x period x current tariff.
- The load factor for homes is 40%.
- The period is 3 months for bi-monthly billing and 2 months for monthly billing.
- Some households have a different rule.
Interest and prepaid meters
- KSEB pays interest at the bank rate on 1 April of the year, from the date of deposit.
- It adjusts the year's interest in your bill during the first quarter of the next year.
- If KSEB is late, it pays 12% a year for up to 30 days, then 18% a year.
- Your bill must show the deposit held and the deposit required.
- You do not need a security deposit if you choose a prepaid meter.
What we could not confirm
- The Supply Code does not say if you can pay the additional security deposit in instalments.
- We found no KSERC or KSEB notice of the current bank rate.
- The 2024 amendment calls the top-up 'additional security/cash deposit (ACD)'. We did not check a current official sample bill for that label.
Questions
Why does KSEB ask for more deposit in April to June?
KSEB reviews every deposit in the first quarter of the year. It compares the deposit with last year's use at today's tariff.
What is ACD on my KSEB bill?
The Supply Code calls the top-up an additional security or cash deposit (ACD). It makes up a shortfall in your deposit.
How fast do I get excess deposit back?
KSEB adjusts it in a maximum of two bills. After that, it must pay the balance by digital transfer.
What if KSEB pays my interest late?
KSEB pays 12% a year for up to 30 days of delay, then 18% a year.
Sources
- Kerala Electricity Supply Code 2014 (updated to 14-10-2025), reg. 67(5)-(6), 69(1), Annexure-3
- Kerala Electricity Supply Code 2014 (updated to 14-10-2025), reg. 70 proviso, 72, 73, 74, 123(1)(u), 138(1)(b)
Read on 16 October 2026.
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