Section 47 of EA 2003, Electricity Act : Section 47: Power To Require Security

Explanation using Example

Imagine a scenario where John moves into a new apartment and applies for an electricity connection. The distribution company, PowerGrid Ltd., informs him that as per Section 47 of the Electricity Act, 2003, he needs to provide a security deposit. This deposit will cover potential unpaid bills for the electricity he will use (clause a) and the cost of installing the necessary infrastructure, such as electric lines, electrical plant, or electric meter (clause b).

John agrees and pays the required security deposit. PowerGrid Ltd. then proceeds to set up the electricity supply to John's apartment. If John had refused or failed to provide the security deposit, PowerGrid Ltd. could have, according to the act, refused to supply electricity to him.

Two years later, due to inflation, the initial security deposit becomes insufficient. PowerGrid Ltd. issues a notice to John asking him to increase his security deposit within 30 days to continue receiving electricity (subsection 2). John overlooks the notice and does not update his security deposit. Consequently, PowerGrid Ltd. is legally allowed to discontinue his electricity supply until he provides the adequate security (subsection 3).

Throughout this period, PowerGrid Ltd. pays interest on John's security deposit at the bank rate specified by the State Commission. When John decides to move out of the apartment, he requests a refund of his security deposit. PowerGrid Ltd. processes his request and refunds the deposit along with the accrued interest (subsection 4).

If John had opted for a pre-payment meter at the beginning, he would not have been required to provide a security deposit for the electricity supply (subsection 5).