TN power discoms asked to pay interest on security deposits

Chennai, Feb 24 (KNN)  Electricity consumers in Tamil Nadu will now be able to get interest on security deposits placed with the distribution companies as per the order of the Tamil Nadu Electricity Regulatory Commission. 
 
The Commission in its order of February-18 said that the distribution licenses “shall pay interest equivalent to the bank rate or more as may be specified by the Commission on the security in respect of electricity supplied to the consumers as well as for the meter provided to the consumers.”
 
It said that conforming to the regulation of the Tamil Nadu Electricity Code, rate on interest on security deposit “shall be calculated and credited to the Security Deposit Accounts of the consumers at the beginning of every financial year.”
 
The credit available including the interest shall be informed to each consumer before the end of the year.
 
The weighted average Bank rate for the period from April 2013 till February 2014 is 9 per cent.
 
The Commission gave its order in regard to a matter relating to electricity consumers and distribution company TANGEDCO.  (KNN/PC)