Nagpur and Wardha Power Users to Get ₹29.87 Crore Refund from MSEDCL
Nagpur, India: The Maharashtra State Electricity Distribution Company Limited (MSEDCL) will refund a total of ₹29.87 crore to power consumers in the Nagpur and Wardha districts as interest on security deposits for the financial year 2024–25.
According to officials, the refund amount will be credited directly to the electricity bills of eligible low-tension (LT) consumers. The move is part of MSEDCL’s annual procedure to return interest earned on consumer security deposits.
Of the total refund, ₹26.13 crore will benefit over 15.4 lakh consumers in Nagpur district, while ₹3.74 crore will be distributed among approximately 3.96 lakh consumers in Wardha district. This year’s refund is ₹2.09 crore higher than last year’s, attributed to an increase in energy consumption and security deposit balances.
MSEDCL collects security deposits from consumers as a safeguard against non-payment of bills. These deposits earn interest, calculated based on the prevailing rates set by the Reserve Bank of India (RBI). Each year, MSEDCL reviews the deposits and adjusts or demands additional amounts if the existing deposit is insufficient to cover two months’ average electricity usage.
In cases where consumers have not paid the additional security deposit requested, the shortfall is adjusted against the interest due to them.
MSEDCL clarified that the deposit remains the consumer’s property and is fully refundable, with interest, upon permanent disconnection of the service. The company has advised consumers to maintain updated records and promptly respond to any additional deposit requests to ensure smooth account settlement and continued electricity service.
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