Date:14/08/2008 URL: http://www.thehindu.com/2008/08/14/stories/2008081455520400.htm

Karnataka - Bangalore

High Court admits plea

Special Correspondent

BANGALORE: The Karnataka High Court on Wednesday admitted a petition challenging a particular condition in the KERC Security Deposit Regulations-2007 which stipulates that Escoms can refund the excess security deposit collected from consumers only if the total security deposit amount paid by them exceeds Rs. 3,000.

In its Security Deposit Regulations-2007 notified in October 11, 2007, the KERC had reduced the amount of deposit being collected by Escoms as security against default towards supply of power to consumers.

Accordingly, the security deposit should be equivalent to two months’ average bill amount instead of the earlier system of three months’ bill amount.

As per these regulations if there is excess deposit, the Escoms should return the sum above 120 per cent of the average bill amount of two months to consumers by way of adjustments in the electricity bills.

However, this refund of excess money will have to be made only if the total deposit is in excess of Rs. 3,000.

This meant that consumers whose security deposit is less than Rs. 3,000 are not eligible for refund.