CEB and LECO ordered to pay interest on consumer security deposits
View(s):The Public Utilities Commission of Sri Lanka (PUCSL) has directed the Ceylon Electricity Board (CEB) and the Lanka Electricity Company Pvt Ltd (LECO) to pay interest on security deposits of electricity consumers from January 2017 onwards.
In a media release on Tuesday, the power regulator issued guidelines to the two agencies on paying interest on security deposit of electricity consumers which CEB and LECO receive when providing an electricity connection.
Electricity consumers are entitled to receive a payment for the security deposits under Section 28 of Electricity Act No.20 of 2009, where it describes the Distribution Licensee (CEB or LECO) to pay interest on such sum of money at the rate approved by the PUCSL for the period in which security deposit remains in the hands of the licensee.
Accordingly, the interest payment on security deposit of the retail consumers (a tariff customer in any tariff category whose maximum contract demand is less than 42 kilo-volt-ampere), will be calculated yearly basis and credited to the consumer’s electricity bill in the month of January of the following year.
Interest payment for the bulk supply consumer (a tariff customer in any tariffs category whose maximum contract demand is more than 42 kilo-volt- ampere), will be calculated monthly and will be credited to the electricity bill in monthly basis.
In a termination of an electricity connection, PUCSL asked CEB and LECO to pay the interest up to the date of termination, together with the security deposit within a month from the date of termination, after deducting all dues to the licensee with respect to the billing account.
The PUCSL has approved an annual interest rate of 8.93 per cent for the security deposits (a monthly interest rate of 0.715 per cent) for the year 2017, effective from January 1. The interest rate is based on the average weighted fixed deposit rates (AWFDR) published by the Central Bank. PUCSL said it will announce the interest rate applicable for the respective year in the month of January each year. Consumers can make complaints to the respective licensees (CEB or LECO) when they encounter any issues related to obtaining interest. If a customer is not satisfied with the solution given by the licensees, such disputes related to interest payment may be submitted to the PUCSL for mediation.
PUCSL has stressed non-payment of interest on security deposit would result in committing an offence under the provision of the Electricity Act.