Approximately 2.45 lakh residential smart meter consumers in Ghaziabad district are now required to pay a new security deposit. This decision comes after the state electricity utility reverted all connections from prepaid to postpaid billing between July and October, making security deposits mandatory under the electricity supply code.
New Deposit Rules and Financial Impact
Under the revised regulations, the electricity corporation will charge a security deposit of ₹400 per kilowatt (kW) of sanctioned load. This change marks a significant increase for many long-standing customers who obtained connections after 1990, having previously paid only a nominal ₹50 or ₹100 as a security deposit decades ago.
The corporation estimates this measure will impose an additional financial burden of approximately ₹9.80 crore (₹98,044,000) on consumers within the district. Older individuals and low-income households, who often made smaller initial deposits, are expected to be most affected by this price hike. Calls have emerged for the utility company to consider offering exemptions or more flexible payment plans for these vulnerable customer groups.
Payment Schedule and Public Reaction
To alleviate immediate financial strain, the total additional security amount will be collected in four equal installments, spread across electricity bills from July through October. "The security deposit for smart meters converted from prepaid to postpaid can be paid in four equal instalments with the electricity bills from July to October for consumers' convenience," stated Anil Kumar Singh, Superintending Engineer, Zone-I, Ghaziabad.
This policy shift follows earlier public anger and protests that erupted when meters were initially converted to a prepaid system. At that time, previous deposits were adjusted, and no fresh payments were required. The strong public reaction ultimately prompted the utility to restore postpaid billing last month, leading to the current requirement for new security deposits.