PR-3/COS/ 22258                                                          Date: 02/07/2005

CIRCULAR NO. 2

                    Sub: Recovery of additional Security Deposit

          As per the MERC directives the amount of the Security shall be an equivalent of the average of three months of billing or the billing cycle period whichever is lesser. To determine the average billing, the average of the billing to the consumer for the last twelve months shall be considered. It is necessary to re-calculate the amount of Security based on the actual billing of the consumer once in each financial year. Where the amount of Security Deposit maintained by the consumer is less, then a demand is to be raised for additional Security deposit. If the consumer fails to pay then effective steps for disconnection and recovery of additional S.D. should be taken without fail.

          The PUC Committee has taken a very serious view for not demanding additional S.D. and effective steps for recovery of the same.

All field officers should ensure that adequate Security Deposit is collected from the consumers and arrears are not allowed to exceed the S.D. available with the MSDCL. Please note that any deviation from the above instructions will be viewed seriously.

Information of additional S.D. should be submitted in following proforma sub division wise by Superintending Engineer for every quarter and register should be maintained at sub division and division level.

Information of additional security deposit demanded & action taken

                                                   Chief Engineer (Commercial)