Why is there a security deposit on my Telangana electricity bill?
Your discom keeps a security deposit equal to two or three months of consumption charges. Once a year it checks the deposit against last year's bills. If the shortfall is more than 10%, it asks for an additional security deposit.
- Reviewed every year
- Top-up: additional security deposit
- Prepaid meters: no deposit
Check your deposit
How TGSPDCL / TGNPDCL reviews the deposit
- The discom reviews the deposit generally once a year, preferably after the tariff revision.
- It uses your average consumption from April to March of the previous year.
- Consumption charges include energy, fixed, FSA and customer charges.
- Additional security deposit = required deposit minus the deposit held.
- The discom does not ask if the shortfall is 10% of the existing deposit or less.
- The discom gives 30 days' notice with its calculations. You pay within 30 days.
- If you pay late, you pay a surcharge of 18% a year.
- If you do not pay, the discom can disconnect without further notice.
If you hold more than needed
- If the excess is more than 10%, the discom adjusts it against your dues and next bills.
- The discom does not refund an excess of 10% or less.
Deposit for a new connection
- For a home above 250 W, the initial deposit is Rs 300 per kW or part (bi-monthly billing).
- With monthly billing, it is Rs 200 per kW or part.
- For a home up to 250 W, it is Rs 100 (bi-monthly) or Rs 80 (monthly).
- After that, you must hold 3 months' consumption charges (bi-monthly billing) or 2 months' (monthly billing).
Interest and prepaid meters
- The discom pays interest at the RBI Bank Rate, or a higher rate that the Commission sets.
- Each year it adjusts the interest against your dues on 1 May and later bills.
- Your bill shows the interest.
- If the discom is late, it pays twice the rate.
- The discom collects no deposit if you take supply through an LT whole-current prepaid meter, and it adjusts any existing deposit.
What we could not confirm
- Telangana adopted the old Andhra Pradesh regulation in 2014. We inferred this from the adoption regulation's title. We read the clauses from the AP consolidated copy.
- We did not see the Telangana text on instalments or the 3-month review of a new connection.
- We found no TGSPDCL or TGNPDCL circular on the timing of the yearly review.
- We found no official notice of the current interest rate.
- An old (2010-format) sample bill on the TGSPDCL website shows 'ACD' (Additional Consumption Deposit). Your current bill may differ.
Questions
What is ACD on my Telangana bill?
ACD is the additional security deposit. The discom asks for it when your deposit is short of 2 or 3 months of charges.
Will they ask for a small shortfall?
No. The discom does not ask if the shortfall is 10% of your existing deposit or less.
What if I pay ACD late?
You pay a surcharge of 18% a year. The discom can also disconnect without further notice.
Sources
- APERC (Security Deposit) Regulation 2004 (consolidated), cl. 4(1), 4(3), 5(1), 6(1)-(4), 7(1)-(4)
- TSERC Regulation No. 1 of 2014 (Adoption of previously subsisting Regulations)
Read on 16 October 2026.
ebbillcalc is not part of any discom or regulator. The regulations and your discom have the final word.