Section 5
Deposit
of Licensee Supply Regulations 2024
A consumer may be required to deposit, within seven days of demand, a sum sufficient to cover the estimated charges for two months’ supply of energy and two months’ rental of equipment, if any.
(2)
The deposit may be payable by electronic means or in the form of cash, cheque, bankers draft, cashier order, bank guarantee or any other form of negotiable instrument from any licensed financial institution, and the said deposit shall be subject to adjustment from time to time upon variation of the estimated charges.
(3)
The deposit shall be a security and not a payment in advance and shall not relieve the consumer from any liability under regulation 4.
(4)
In default of payment of deposit within the time specified in subregulation (1), the supply to the consumer’s installation may be disconnected, by serving a notice to the consumer, stating the reason and date the supply is to be disconnected, at least seven working days in advance before the intended disconnection and the supply may remain disconnected until such time after the deposit has been paid:
Provided that the disconnection of the supply shall not be carried out during the eve of weekends or public holidays.
(5)
Where the licensee has collected the deposit from the consumer under subregulation
(1)
, the licensee shall pay a sum equivalent to two point five percent per annum or such percentage to be determined by the Minister as a rebate on the amount of deposit, other than deposit paid in the form of bank guarantee, held by licensee, to be calculated on a pro-rated basis from the date of the supply until the supply has been terminated and shall credit it into the consumer’s account at the end of January of every year.
(6)
The licensee shall refund the deposit not later than thirty days after the termination of the supply to the consumer, his successor in title, lawful assign, trustee, personal representative, administrator or any person entitled to that amount of money, subject to the deduction of any amount then due to the licensee by the consumer:
6
Provided that the deposit shall not be refunded to any person other than the consumer, but where a person is able to furnish the licensee with a discharge and indemnity letter, such deposit may be refunded to such person.
(7)
For the purposes of this regulation, “deposit” shall include additional deposit.