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UPCL required to pay interest on security deposits of consumers

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By OUR STAFF REPORTER
Dehradun, 16 May: Brig KG Behl (Retd), President, All India Consumers Council and Sanyukta Nagrik Sangathan, Uttarakhand, has reminded UPCL consumers that, in the latest rates schedule issued by UPCL under Office Memorandum no. 1046/UPCL/RM/D-13, dated 3-04-2019, instructions have been issued to all its officials to pay interest on security deposits of consumers, both consumption and material security, at the bank rate notified by Reserve Bank of India from time to time, with effect from 2003. The bank rate presently is 6.5% p.a. UPCL has given rate of interest prevalent during various years.
The interest accrued to the credit of the customer shall be adjusted in the electricity bills in the following financial year latest by 30 June. However, in case the security deposit of the customer has become insufficient, the interest on security deposit shall be first adjusted towards the shortage of security deposit and thereafter on availability of balance amount. The same shall be adjusted in the electricity bills of the customer. The period and rate of interest amount becoming due to the customer towards interest on security deposits and adjusted for the same shall be shown in the relevant bills raised on the customer.
The interest shall be payable if the security deposit is paid in cash (including cheque or bank draft). No interest shall be payable where security has been provided by way of bank guarantee, letter of credit, etc.
In the event of making the adjustment for interest on security deposit by any unit of the corporation, interest shall be payable at one and a half times of the rate applicable.
The letter further states that in case interest is not adjusted in the electricity bills of the consumers following the financial year latest by 30 June, penal interest is payable to the consumers as described above. The same shall be paid by the division office with the approval of the superintending engineer (distribution) concerned and the said SE will ensure that the penal interest is paid to the consumer should be recovered from the pay of the employees who are responsible for delay in adjustment of interest in the bills of the consumer.
Behl hopes that suitable action will be taken soon and necessary interest accrued will be adjusted in the bills of the consumers.