Nagpur: In a significant consumer-friendly initiative aimed at strengthening trust with electricity consumers, Maharashtra State Electricity Distribution Company Limited (MSEDCL) has decided to refund interest amounting to ₹13.12 crore on security deposits to more than 7.03 lakh low-tension (LT) electricity consumers in the Nagpur Division for the financial year 2025-26. The interest amount is being directly adjusted against consumers' current electricity bills, providing substantial financial relief to households and businesses across the region.
According to MSEDCL, a total of 7,03,590 electricity consumers in Nagpur Division will benefit from the scheme. Of the total refund amount of ₹13,12,77,428, consumers in Nagpur district will receive interest adjustments worth ₹11,68,20,484, benefiting 5,97,428 consumers. Meanwhile, 1,03,642 consumers in Wardha district will receive interest adjustments totaling ₹1,44,56,944. The credited amount is being reflected in electricity bills issued during the months of May and June 2026.
MSEDCL officials explained that many consumers are often unaware of the purpose of the security deposit collected by the power utility. The security deposit is essentially a refundable amount maintained as a safeguard against electricity consumption charges. As per the interest rates prescribed periodically by the Reserve Bank of India (RBI), MSEDCL pays annual interest on these deposits and credits the amount to consumers through their electricity bills.
The utility stated that revenue collected through electricity bill payments is used for power procurement, strengthening the distribution network, maintenance of infrastructure, and meeting administrative expenses. Therefore, timely payment of electricity bills by consumers remains crucial for ensuring uninterrupted power supply and maintaining the quality of services.
As part of its annual review process, MSEDCL reassesses the security deposit requirement of consumers based on their electricity consumption patterns. If a consumer's power usage has increased and the existing security deposit falls below the equivalent of two months' average billing, the utility issues an additional security deposit demand. Officials clarified that this exercise is carried out in accordance with regulatory guidelines and helps prevent future disruptions in electricity services.
MSEDCL further informed that for consumers who have not yet paid their additional security deposit dues, the outstanding amount is being adjusted against the interest payable on their existing security deposits. However, consumers have been advised to clear any pending additional security deposit amounts in full to avoid future complications.
The power utility emphasized that the security deposit acts as a financial safeguard for consumers and is refundable along with accrued interest if the electricity connection is permanently disconnected. MSEDCL has appealed to all concerned consumers to promptly pay any additional security deposit bills received by them and continue supporting efforts to ensure uninterrupted electricity supply.
Consumers can make payments conveniently through MSEDCL's official website, mobile application, online payment gateways, digital wallets, or at the nearest electricity bill payment center. The utility reiterated its commitment to protecting consumers' interests by ensuring timely credit of security deposit interest and maintaining reliable power services across the region.
