What is ACD in a KSEB bill?

ACD stands for Additional Cash Deposit. It is a statutory security deposit top-up assessed annually under Regulations 67-72 of the Kerala Electricity Supply Code 2014 if your average consumption increased over the preceding year.

Is KSEB ACD mandatory to pay?

Yes. Failure to pay the assessed ACD demand notice by the due date can result in disconnection notice under Section 56 of the Electricity Act, 2003, as security deposit is a mandatory condition of electricity supply.

Does KSEB pay interest on Cash Deposit?

Yes. Under Regulation 72 of the Supply Code, KSEB must pay interest on your accumulated cash deposit equivalent to the RBI Bank Rate as of April 1st of each financial year, which is credited against your electricity bill.

Regulatory Deposit Guide Source: Kerala Electricity Supply Code 2014 (Regulations 67–72)

KSEB Additional Cash Deposit (ACD) Explained: Why Your Bill Doubled

കറന്റ് ബില്ലിൽ അഡീഷണൽ ക്യാഷ് ഡെപ്പോസിറ്റ് (ACD) വരുന്നത് എന്തുകൊണ്ട്? ഉപഭോക്താക്കൾ അറിയേണ്ട കാര്യങ്ങൾ.

Every year around May and June, thousands of Kerala households are shocked when their bi-monthly electricity bill suddenly doubles or triples. The line item causing this is almost always Additional Cash Deposit (ACD).

1. What is ACD? It is a Security Deposit, Not Energy Cost

The first and most important thing to know is that ACD is not an energy charge. You did not consume that amount in electricity.

Under Regulations 67 through 72 of the Kerala Electricity Supply Code 2014, KSEBL is authorized to hold a refundable security deposit against your electricity connection to protect against defaults.

📋 The 3-Billing-Cycle Formula

For bi-monthly billed consumers, KSEBL reviews your total electricity consumption over the preceding 12 months. Regulations require your total security deposit to equal three billing cycles (i.e. approximately 6 months) of your average electricity charges.

If your usage increased over the past year (for example, after installing an AC, induction cooker, or water heater), your required deposit goes up. KSEB calculates:

ACD Demand = (Required Security Deposit for Current Usage) − (Deposit Already Paid)

The difference is billed to you as a lump-sum line item labeled "ACD".

2. KSEB Must Pay You Annual Interest on Your Deposit

Because this is your money held in custody, Regulation 72 mandates that KSEBL must pay annual interest on your accumulated cash deposit equivalent to the Reserve Bank of India (RBI) Bank Rate as of April 1st of that financial year.

This interest is not paid in cash; instead, it is automatically credited as a discount on your energy bill (typically in the April–June billing cycle). Look for a line item labeled "Interest on Security Deposit" or "SD Interest" on your bill receipt.

3. Step-by-Step Verification Checklist

Step 1: Download 12-Month Bill History

Log into the official KSEB Web Self Service (WSS) portal (wss.kseb.in) and check your actual bi-monthly bill totals across the previous financial year.

Step 2: Check Existing Security Deposit Balance

Verify what initial deposit is credited in KSEB records under your 13-digit consumer number. Sometimes older paper deposits made during connection were not transferred during digitalization.

Step 3: Request Installment Plan if Unaffordable

If an ACD demand notice of ₹3,000–₹6,000 creates severe household hardship, submit a simple written request to the Section Office Assistant Engineer (AE) requesting permission to pay the ACD in 2 or 3 equal monthly installments.

Did this guide demystify the ACD line item on your bill?