What is ACD in KSEB Bill? (2025 Guide)
Understanding Additional Cash Deposit in your Kerala electricity bill and how it affects your monthly charges
Quick Answer
ACD (Additional Cash Deposit) is a security deposit collected by KSEB based on your average consumption pattern, typically 2-3 times your monthly bill amount.
In This Guide:
- What ACD means and why it's collected
- How ACD is calculated by KSEB
- When and how ACD gets revised
- Ways to manage your ACD amount
Understanding ACD in Your KSEB Bill
If you've been puzzled by the "ACD" line item on your Kerala electricity bill, you're not alone. ACD, which stands for Additional Cash Deposit, is a security deposit mechanism used by KSEB to ensure reliable bill payments and manage consumer accounts effectively.
Unlike your regular electricity charges, ACD is not a monthly fee but rather a one-time or periodic deposit that acts as collateral for your future electricity consumption. This guide will help you understand everything about ACD in 2025.
💡 Did You Know?
ACD helps KSEB maintain financial stability and ensures uninterrupted power supply by securing advance payment for potential future consumption.
Why KSEB Collects ACD
Security Assurance
Protects KSEB against potential bill defaults and ensures financial security for continuous power supply.
Consumption-Based
Calculated based on your historical usage patterns and consumer category to ensure appropriate deposit levels.
Domestic Consumers
Lower ACD rates for residential connections based on monthly consumption patterns
Commercial Users
Higher ACD requirements due to increased consumption and business usage patterns
Industrial Connections
Substantial ACD amounts reflecting high power consumption and load requirements
How ACD is Calculated
Calculation Formula
ACD = Average Monthly Consumption × Current Tariff Rate × Multiplier Factor
Average Consumption
Based on last 12 months usage or estimated consumption for new connections
Current Tariff
Applicable tariff rate per unit for your consumer category and slab
Multiplier Factor
Typically 2-3 times monthly bill amount, varies by consumer category
📊 Example Calculation
For a domestic consumer with 200 units monthly consumption:
200 units × ₹4.50/unit × 2.5 = ₹2,250 ACD
When ACD Gets Revised
Revision Triggers
Periodic Review
KSEB conducts ACD reviews every 3-5 years or as per regulatory guidelines
Consumption Increase
Significant increase in monthly consumption patterns triggers ACD revision
Tariff Changes
Major tariff revisions may result in ACD adjustments to maintain deposit adequacy
Revision Outcomes
- Additional deposit collection
- Partial refund with interest
- Adjustment in future bills
Impact on Consumers
✅ Positive Impacts
- Ensures uninterrupted power supply
- Interest earned on deposit amount
- Refundable upon connection termination
- Can be adjusted against outstanding bills
⚠️ Considerations
- Large upfront payment for new connections
- Additional financial burden during revisions
- Money locked up until connection closure
- Interest rates may be lower than market rates
Managing Your ACD Effectively
Reduce Consumption
Lower your average usage to potentially reduce ACD during next revision
Consider Solar
Solar installations can reduce grid consumption and potentially lower ACD requirements
Monitor Bills
Keep track of consumption patterns and ACD notifications from KSEB
Frequently Asked Questions
What is ACD in KSEB bill?
What is ACD in KSEB bill?
ACD stands for Additional Cash Deposit. It is a security deposit collected by KSEB (Kerala State Electricity Board) from consumers to secure future electricity consumption. The amount is calculated based on your average monthly consumption and current tariff rates.
Is ACD refundable?
Is ACD refundable?
Yes, ACD is refundable. The deposit is typically refunded when you terminate your electricity connection or when KSEB revises deposit requirements downward. The refund includes interest as per KSEB regulations.
How often is ACD revised in Kerala?
How often is ACD revised in Kerala?
KSEB typically revises ACD every 3-5 years or when there are significant changes in consumption patterns or tariff rates. The revision can result in additional deposit collection or refund to consumers.
Can I reduce my ACD by lowering consumption?
Can I reduce my ACD by lowering consumption?
Yes, consistently lower electricity consumption over 12-24 months can lead to ACD revision during the next review cycle. KSEB may reduce your required deposit amount based on your new consumption pattern.
Does solar installation reduce ACD demand?
Does solar installation reduce ACD demand?
Solar installations with net metering can reduce your grid consumption, which may lead to lower ACD requirements during revision. However, the deposit calculation also depends on your peak consumption and connection load.
Calculate Your Expected KSEB Bill & Deposits
Use our KSEB Bill Calculator to estimate your monthly electricity charges and understand how ACD affects your overall costs
Try KSEB CalculatorFree • Accurate • Updated for 2025 Rates