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Why is there a security deposit on my Madhya Pradesh electricity bill?

Your discom keeps a security deposit against your future bills. Each year by June it checks the deposit against last year's billed use. If there is a shortfall of Rs 100 or more, it asks for an additional security deposit (ASD).

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

How MPPKVVCL / MPMKVVCL / MPPaKVVCL reviews the deposit

  • The discom reviews the deposit every year by June.
  • It uses the consumption billed in the previous financial year (April to March).
  • ASD = required deposit minus the deposit held.
  • The discom asks only if the shortfall is Rs 100 or more.
  • You pay in three equal monthly instalments from July. You can also pay in one go.
  • The discom gives at least one month's notice.
  • If you do not pay, the discom can stop supply while the failure continues. It also adds a late payment surcharge.

If you hold more than needed

  • If the excess is Rs 100 or more, the discom credits it in three equal monthly instalments from July.
  • A late credit earns simple interest of 1% per month.

Deposit for a new connection

  • For a home in an urban area, the discom assesses 150 units per kW or part per month.
  • It prices these units at the tariff of the day for all billing heads.
  • Billing heads include fixed charges, energy charges, duty, cess and meter rent.
  • It rounds the deposit up to the next Rs 100.
  • In notified rural areas, the deposit is 50% of the urban amount.
  • Some households have a different rule.

Interest and prepaid meters

  • The discom credits deposit interest every month through your monthly bill.
  • Under the discom's prepayment scheme for LT consumers, you pay no energy security deposit.

What we could not confirm

  • Our research read the 45-day rule (the required deposit covers 45 days of use) through a summary tool only. We do not show a calculator for this reason.
  • We did not find how the 150 units per kW per month turns into the 45-day deposit.
  • We read the 2024 interest rule from a scanned copy: Bank Rate on 1 April, from the date of receipt. Check it with your discom.
  • We found no MPERC text on smart prepaid meters beyond the prepayment scheme.
  • We found no official bill label and no official current interest rate.

Questions

Why does my MP bill show ASD from July?

The discom reviews your deposit by June. It collects any ASD in three equal monthly instalments from July.

Will they ask for a small shortfall?

No. The discom asks only if the shortfall is Rs 100 or more.

How do I get excess deposit back?

The discom credits it in three equal monthly instalments in your bills from July.

When do I get interest on my deposit?

The discom credits interest every month through your monthly bill.

More tools

Madhya Pradesh bill calculatorOther 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.