A growing wave of discontent has emerged among South Mumbai residents following the recent imposition of an additional security deposit on their electricity bills, coinciding with the rollout of smart meters. The controversy has led Ravi Raja, a former opposition leader of the Brihanmumbai Municipal Corporation (BMC), to file a petition with the Bombay High Court seeking the annulment of this new charge.
The imposition of the additional security deposit has sparked widespread opposition from consumers who argue that the deposit is redundant. Residents, including those from Mumbadevi and Peddar Road, have expressed frustration with the additional financial burden, particularly given that the BEST Undertaking already holds deposits for existing meters. One resident criticised the online process for being overly complex and inconvenient.
Ravi Raja has vocalised his concerns through social media, tagging Chief Minister Eknath Shinde to draw attention to the grievances surrounding the additional deposit. Raja has called for a reversal of the new charge, especially since the installation of smart meters for residential areas has been temporarily halted by BEST. He questions why this extra deposit, which appears to have been introduced after a three-year delay since its provision was established in 2021, is now necessary. In response, a BEST official stated that the additional deposit is being collected in compliance with the Maharashtra Electricity Regulatory Commission (MERC) Electricity Supply Code. This regulation, they argue, provides the legal basis for the new charge, aligning with practices adopted by other power utilities in the state.
Raja contends that the real motive behind the additional deposit is to cover the financial shortfalls of BEST’s transport division, which is facing a substantial deficit of approximately Rs 2000 crore this fiscal year. He draws a parallel to the 2012 situation where a similar levy, known as the Transport Division Loss Recovery (TDLR) cess, was introduced to offset transport losses but was later withdrawn following public protests. BEST officials maintain that the additional deposit is strictly for the power supply division, with plans to raise around Rs 200 crore from approximately 10.8 million consumers. This move is intended to bolster the financial stability of the power supply segment amidst ongoing infrastructural developments and operational costs.
