Argus News - Tata Power Clarifies Additional Security Deposit Notice Amid Statewide Protests

Bhubaneswar, Dec 18: A statewide controversy has erupted after Tata Power issued a notice asking electricity consumers to pay an additional security deposit, prompting sharp reactions from consumer bodies and political parties. As criticism intensified, the company on Thursday released a detailed clarification explaining the rationale behind the revised security deposit calculations.

According to Tata Power, consumers whose electricity consumption has increased in recent months may find their earlier security deposit—calculated on the basis of two months’ billing—insufficient. In such cases, the difference must be paid as an additional security deposit.

The company further stated that consumers whose electricity usage has decreased in the 2024–25 financial year, resulting in a security deposit exceeding the required amount by more than 10 per cent, will be eligible for refunds. The excess amount will be adjusted in their electricity bills.

Tata Power also clarified that consumers receive annual interest at 6.50 per cent on their security deposits, which is adjusted in their bills every year. The deposit, the company said, acts as a safeguard against payment defaults. In cases where a consumer fails to pay bills leading to disconnection, the outstanding dues may be recovered from the security deposit.

Despite the clarification, protests continued across several locations. The Biju Janata Dal (BJD) staged demonstrations outside Tata Power offices, accusing the company of burdening consumers. The Bharatiya Janata Party (BJP), however, countered the criticism, alleging that the BJD itself had brought Tata Power into Odisha.

BJP spokesperson Manoj Mahapatra said, “Who brought Tata Power to Odisha? The very party protesting today—BJD—and its former leader Naveen Patnaik. All agreements and legal provisions were made during the BJD government. The BJP government stands with consumers and is working in their interest. The BJD should not protest merely for political gain.”

Odisha currently has 87 lakh electricity consumers, of whom 16 lakh households have been provided with smart meters. Nearly 98 per cent of consumers use less than 2 kW of electricity. Whether Tata Power’s clarification will calm public anger remains to be seen, as protests show no signs of subsiding.