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Section 47. (1) Subject to the provisions of this section, a distribution licensee

may require any person, who requires a supply of electricity in pursuance of section
43, to give him reasonable security, as determined by regulations, for the payment
to him of all monies which may become due to him -

(a) in respect of the electricity supplied to such persons; or

(b) where any electric line or electrical plant or electric meter is to be
provided for supplying electricity to person, in respect of the provision of such
line or plant or meter,

and if that person fails to give such security, the distribution licensee may, if he
thinks fit, refuse to give the supply or to provide the line or plant or meter for the
period during which the failure continues.

(2) Where any person has not given such security as is mentioned in
subsection (1) or the security given by any person has become invalid or
insufficient, the distribution licensee may, by notice, require that person, within
thirty days after the service of the notice, to give him reasonable security for the
payment of all monies which may become due to him in respect of the supply of
electricity or provision of such line or plant or meter.

(3) If the person referred to in sub-section(2) fails to give such
security, the distribution licensee may, if he thinks fit, discontinue the supply of
electricity for the period during which the failure continues.

(4) The distribution licensee shall pay interest equivalent to the bank
rate or more, as may be specified by the concerned State Commission, on the
security referred to in sub-section (1) and refund such security on the request of the
person who gave such security.

(5) A distribution licensee shall not be entitled to require security in
pursuance of clause (a) of sub-section (1) if the person requiring the supply is
prepared to take the supply through a pre-payment meter.















Additional terms
of supply.