In a move aimed at promoting prepaid metering and easing financial pressure on new electricity consumers, the Andhra Pradesh Electricity Regulatory Commission (APERC) has issued the Third Amendment to the APERC (Security Deposit) Regulation, 2004. Officially titled Regulation No. 3 of 2025, the amendment was published on February 25, 2025, and is now in effect following its notification in the Andhra Pradesh Gazette.
The amendment brings significant changes to Clause 4(3)(iii) of the principal regulation and focuses on streamlining the process of security deposit collection for electricity connections under Section 43 of the Electricity Act, 2003.
Key Highlights of the Amendment
- No Security Deposit for New Prepaid Connections
As per the revised clause, new applicants seeking an electricity connection who are willing to opt for pre-payment meters will no longer be required to pay a security deposit. This is expected to encourage the adoption of prepaid metering across the state, enhancing billing transparency and consumer empowerment. - Adjustment of Security Deposit for Existing Consumers
For existing consumers transitioning to smart prepaid meters, the regulation outlines a clear mechanism:- Their existing Consumer Security Deposit (CSD) will first be adjusted against any outstanding dues.
- Any remaining balance post-adjustment will be credited to the e-wallet linked to the consumer’s new prepaid meter.
This progressive step is expected to benefit thousands of consumers, particularly households and small businesses, by reducing upfront costs associated with obtaining a new electricity connection.
Statewide Implementation
The amendment extends to all regions of Andhra Pradesh and comes into force on February 25th 2025 .
