UPPCL to pay interest on security deposits

Power regulator UP Electricity Regulatory Commission has directed UP Power Corporation Limited (UPPCL) to pay interest at the rate of 4.25 per cent to power consumers on their security deposits.

The UPPCL has security deposits of Rs 4,215 crore it received from 3.3 crore power consumers for obtaining power connections.

For the last financial year 2022-23, UPPCL will pay Rs 180 crore to the power consumers. The interest amount will be adjusted in power bills. As per the provisions of the Indian Electricity Act, 2003 and the Power Distribution Code 2005, the power distribution company is liable to pay interest every year to the power consumers as per the interest rate fixed by the Reserve Bank of India on April 1 each year.