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PUCSL issued guidelines to pay interest on deposits held by electricity consumers

The Sri Lanka Public Utilities Commission (PUCSL), the regulator of the electricity sector has issued directives to the Council of Ceylon Electricity (CEB) and Lanka Electricity Company Limited (LECO) to pay interest on the consumer's security deposit CEB of electricity and LECO receive when supplying an electrical connection.

Electricity consumers are entitled to receive payment of security deposits in accordance with section 28 of the Electricity Act No. 20 of 2009, where the Distribution Licensee (CEB or LECO) describes the remuneration interest Of that amount at the rate approved by the PUCSL for the period in which the security deposit remains with the licensee.

As a result, interest payments on retail consumer deposits (a customer rate at any rate category with a maximum demand contract is less than 42 kilovolts) will be calculated annually and credited to the electricity bill consumer In January the following year.
The payment of interest for the bulk supply of consumers (a customer rate at any rate category with a maximum contractual demand exceeding 42 kilovolts) will be calculated monthly and will be paid to the electricity bill on a monthly basis.

At the end of an electrical connection, PUCSL requested CEB and LECO to pay interest until the termination date, together with the security deposit within one month from the termination date, after deducting all charges to The operator in respect of the billing account.

PUCSL approved an annual interest rate of 8.93 percent for security deposits (monthly interest rate of 0.715 percent) by 2017, from 1 January. The interest rate is based on the weighted average fixed interest rate (AWFDR) issued by the Central Bank of Sri Lanka. PUCSL announce the interest rate applicable for the year to the month of Janaury each year.

Consumers can file complaints with the respective licensees (CEB or LECO) when they encounter a problem with interest obtaining. If a client is dissatisfied with the licensee's solution, such disputes related to interest payments may be submitted to PUCSL for mediation.

PUCSL pointed out that the non-payment of interest on the security deposit would be like having committed a crime under the provisions of the Electricity Act.

Reason for interest to be paid on security deposit

1. Background
Pursuant to section 28 of the Electricity Act no. 20 of 2009, the Distribution Licensee may apply in writing to any person requiring a connection and supply of electricity, ensuring reasonable security for payment of all the money that may be because the licensee. Where money is provided to a distribution licensee through a security deposit, the Licensee shall pay interest on that amount at the rate approved by the Commission for the period during which the security deposit remains in the Recognition Rights Licensee has acquired rights to consumers to receive interest on the deposit made under this provision, and in accordance with the joint proposal dated May 16, 2014 in Ceylon Electricity Board and Lanka Electricity Company Private Ltd.

2. Interest rate approved by the Commission
The Commission informs all Licensees Breakdown of interest rates relative to the customer Annual retail sales rate and monthly interest rate in relation to the maximum customer rate for the deposit during the month of January each year.

3. The payment of interest
3.1 Given the amount of a customer's deposit of massive rates in relation to the deposit of a retail customer rate, interest payments to these categories of customers will be paid as follows:
A. Customer Retail Rate
A) Accrued interest on the deposit of a customer rate detail is calculated for each calendar year and credited to the billing account retail customer rate and updated during the January billing cycle of each year.

During a calendar year, if the amount of the modified security deposit increases or decreases, the amount will be updated billing account during the next billing cycle. The interest for the new deposit must be calculated from the date of deposit is updated and is credited to the account that a) above.

 
 

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