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Chapter-VII - Energy Conservation Act

Terms and conditions of supply of electricity

Chapter-vii
Metering, power supply charges and security deposits
 

48. Metering:-

  1. No installation other than that exempted shall be serviced without meter. The department will provide the meters required for measuring the consumption of electricity and shall charge monthly rental for the same in accordance with the charges as laid down in the scale of miscellaneous and general charges. The consumer shall not be normally entitled to have his own meter, except as a check meter during the period of agreement and the consumer shall pay the rental charges every month. Notwithstanding that a check meter is provided, the electricity recorded by the meter installed by the department shall be taken as the electricity actually supplied by the department. Meters will ordinarily be installed at the point of entry to building and shall be fixed and installed according to the convenience of the department on the consumer's premises on the ground floor where it would be accessible for reading and inspection at any time or at such other suitable place as the department's Engineer shall decide and the consumer shall run his wiring from such point of supply and also be responsible for the safety of the meter from theft, damage or tampering.
  2. The security seals in the meter cover and the current transformer chamber will be provided by the department after testing the meter. The seals on the terminal cover of the meter (Low Tension and High Tension), test block, metering seals as desired by the department will be provided at site in the presence of the consumer or his representative who shall satisfy himself that all the seals including the security seals are intact and the meter disc is rotating in the forward direction in all phases. It is the responsibility of the consumer to ensure that the seals are not damaged or tampered with. Any damage/tampering of metering equipment or seals will be prima-faice evidence of dishonest abstraction of energy.
  3. No H.T service shall be released without a Trivector meter. Where metering of the High Tension service connection is on the Low Tension side i.e., on the secondary side of the transformer, the MD and quantity of electricity consumed in any month on the High Tension side will be computed by adding 3% extra on account of transformation losses to the quantity as registered by the LT Trivector meter during the month.
  4. The consumer, unless exempted, shall pay the prescribed meter security deposit.
  5. The department shall have the right to recover from the consumer the cost of metering equipments and accessories lost or damaged in the consumer's premises.

49. Reading Of Meters:-

  1. Reading of meter or meters will be taken by the employees of the department once in each month or at such intervals or times the department may consider expedient and they shall have access to the consumer's premises at all reasonable hours for the purpose of such reading. The meter readings will be entered by such employee in a card to be attached to such meter which will be open to the inspection of the consumer. Payment for energy supplied shall be made by the consumer according to the meter readings referred to above.
  2. In respect of HT service connections, the meter readings will be taken by the employee of the department in the presence of the consumer or his representative. The signature of the consumer or his representative will be taken in the meter card in token of being present at the time of taking the reading. If the consumer or his representative refuses to be present or refuses to sign in the meter card, the fact will be recorded. The meter readings and consumption will nevertheless be entered in the meter card.
  3. The readings so taken shall be conclusive proof of the energy supplied to the consumer and binding on the consumer.
  4. When a LT consumer leaves his installation connected to the department's mains but makes it inaccessible for reading by the employees of the department, the consumer will, for the first occasion of such inaccessibility, be charged provisionally on the basis of the amount charged on the previous occasion.
  5. If, on the next occasion, the meter is accessible for reading, the consumer will be charged for the actual consumption less the amount already charged for the first month but subject to the minimum monthly charges for both the periods. If, on the other hand, the meter remains inaccessible on the second occasion also, the consumer will be served with 24 hours notice under section 20 of Act to open his premises at a fixed time and date to enable an employee of the department to read the meter. If the meter is now made accessible for reading, the consumer will be charged the actual consumption less the provisional amount charged and paid for the first period of inaccessibility subject to the minimum monthly charges for both the periods. If the meter remains inaccessible even after 24 hours' notice, the supply to the premises will be disconnected and for that period also provisional amount as in the case of previous occasion will be charged to the consumer.
  6. If the meter is made accessible, subsequent to the disconnection for purposes of reading the meter and settling accounts or for reconnection of the service as the case may be, the consumer will be charged for the actual consumption subject to the minimum monthly charges payable for both periods less the two provisional amounts levied and paid for the two periods of inaccessibility. Any excess amount collected will be adjusted in future current consumption charges.
  7. When a HT consumer leaves his installation connected to the department's mains but makes it inaccessible for reading by the employees of the department, the consumer will be served with a 24 hours' notice to open his premises for reading of the meter by the employees of the department at a fixed time. If the meter is now made available for reading, the readings will be taken. If the meter remains inaccessible even after the 24 hours' notice, the supply to the premises will be disconnected and the consumer will be charged provisionally on the basis of the amount charged for the previous month. If the meter is made accessible subsequent to the disconnection, the consumer will be charged the actual consumption less the provisional amount charged subject to minimum monthly charges.

50. Supply Without Meter/Defective Meter:

  1. Where supply to the consumer is given without a meter or where the meter fixed is found defective or to have ceased to function and no theft of energy or violation is suspected, the quantity of electricity supplied during the period when the meter was not installed or the meter installed was defective, will be assessed as follows, namely:-
    1. The quantity of electricity supplied during the period in question will be determined by taking the average of the electricity supplied during the preceding four months in respect of HT service connections and four months or two assessment periods (four months) in respect of LT service connections, provided that the conditions in regard to use of electricity during the said four months/two assessment periods were not different from those which prevailed during the period in question. In respect of HT service connections, where the meter fixed for measuring the Maximum Demand becomes defective, the Maximum Demand will be assessed by computation on the basis of the average of the recorded demand during the previous four months.
    2. Where the meter becomes defective immediately after the service connection is effected the quantum of electricity supplied during the period in question is to be determined by taking the average of electricity supplied during the succeeding 4 months or two assessment periods.
    3. If the conditions in regard to use of electricity during the two periods as mentioned above were different, assessment will be made on the basis of any consecutive four months period during the preceding twelve months when the conditions of working were similar to those in the period covered by the billing.
    4. Where it is not possible to select a set of four months, the quantity of electricity supplied will be assessed by the Assistant Executive Engineer in the case of Low Tension service connections and by the Executive Engineer in the case of HT service connections on the basis of the connected load and the hours of usage of electricity by the consumer. However, in the case of industrial consumers due regard should be given to the production figures and conditions of working during the period under question.
  2. In case, the consumer does not agree with the assessment made by the Assistant Executive Engineer/Executive Engineer, the matter may be referred to the Executive Engineer / Superintending Engineer whose decision shall be final and binding on the consumer.
  3. When the consumer of a domestic installation requests in writing to keep the installation in service for reason that he will be away from his residence, the installation will not be disconnected upto a maximum period of six months provided he pays the minimum/fixed charges in advance for such period as he intends to be away. When the meter is made accessible by the consumer for taking the meter reading, the entire consumption will be taken as if the consumption was for the last billing period.

51. Correctness Of Meter:-

  1. The electricity supplied to a consumer shall be ascertained by means of correct meter which shall be hired by the department and the department shall keep the meter correct.
  2. At periodical intervals, the meters will, if desired by the department, be recalibrated and standardised by means of standard instruments by the department. In respect of High Tension service connections, however, such recalibration will be done in the presence of the consumer's Electrical Engineer or his representative if the consumer so desires. Adjustments in bills will be made for error at average load and power factor of the consumer, when the meter is found to be incorrect during periodical tests for a preceding period of four months for High Tension service connections and two assessment periods or four months for Low Tension service connections, unless there is evidence for adopting a different period.
  3. If the consumer considers that the meter is defective, he may apply to the Engineer to have a special test carried out on the meters at any time and the cost of such a test shall be borne by the department or the consumer according as the meter is found defective or correct as a result of such a test. The meter will be deemed to be correct if the limits of error do not exceed those laid down in Indian Electricity Rules 1956 or any other statutory modification thereof for the time being in force or in Bureau of Indian Standard Specification.
  4. The department shall, at any reasonable time and after informing the consumer of its intention, have access to and be at liberty to inspect and test the meter and for that purpose, if it thinks fit, take off and remove any meter to its laboratory.

52. Power Supply Charges:-

  1. The consumer shall pay power supply charges as per the tariff in force from time to time. Where the charges are leviable based on the sanctioned load, the rated load shall be deemed to be the sanctioned load for billing purposes, if the rated load is higher than the sanctioned load.
  2. The department will furnish to the consumer every month or at such intervals, as prescribed by the department from time to time, the power supply bills for the actual or in its absence, the assessed demand and/or consumption, either at the spot or by post or by personal delivery. The amount of the total bills for current consumption and miscellaneous charges shall be rounded off to the nearest rupee.
  3. The demand charge will be a fixed monthly charge whether energy is consumed or not and will constitute a minimum monthly payment. For the purposes of billing the maximum demand to be taken shall the maximum recorded during the month or 75% of the contracted demand whichever is higher. If in anyone month, the recorded maximum demand of the consumer exceeds its contracted demand, that portion of the demand in excess of the contracted demand will be billed at double the normal rate.
  4. Whenever there is change in the sanctioned demand or permitted demand during the course of a month, the meter will be reset and the maximum demand charges will be regulated proportionately for the respective periods.
  5. Where the Restriction and control' orders are applicable, the maximum demand charges will be for the actual recorded demand irrespective of the sanctioned demand and also subject to the minimum charges leviable for the service had the recorded demand been Nil. The maximum demand charges shall constitute the minimum monthly charges. If the demand recorded is nil where the Restriction and control' orders are applicable, the minimum shall be 20% of the rate fixed for maximum demand in the Tariff Notification.
  6. In the case of High Tension Service Connections, the department will, as far as possible within 7 days after the expiry of each month, cause to be delivered to every consumer a bill of charges stating the amount payable by the consumer in connection with supply of electricity by the department.
  7. In the case of Low Tension service connections (except agricultural and hut service connections), meter readings will be taken monthly or at such other intervals of time as the department shall think expedient and prescribed from time to time.

53. Electricity Bills:-

  1. Bills will normally be sent by post or by hand delivery but the department takes no responsibility for loss in transit. The consumers should notify the concerned office of the department if no bill/assessment is received. Non-receipt of the bill/assessment will not entitle the consumer to delay payment of the charges beyond the due date.
  2. In the event of any clerical errors or mistakes in the amount levied, demanded or charged by the department, the department will have the right to demand an additional amount in case of under charging and the consumer will have the right to get refund of the excess amount in the case of overcharging provided that at that time such liability and claims were not barred by limitation under the law then in force. Where it is found that the consumer has been overcharged, the excess amount paid in such cases will be adjusted in future current consumption charges.
  3. The amount claimed shall be paid within the time allowed irrespective of any decisions to be taken regarding any disputes about the correctness or otherwise of the amount levied, demanded or charged by the department. The department will have the right to proceed in accordance with law on the basis of the amount claimed till it is provided or established that the amount claimed was in excess of what was actually due. The consumer shall not, on the plea of incorrectness of the charges, withhold any portion of the charges.
  4. In case the last date for payment of bill happens to be Sunday or a declared public holiday, payment may be made on next working day without additional charges/Belated Payment surcharge.

54. Disputes About Bills:-

Any complaint or dispute with regard to the accuracy of the bills shall be referred to by the consumer in writing to the officer who has issued them. Arithmetical mistakes on the face of the bills shall be corrected and revised bill issued by the office who has issued them. In all other cases, any correction or revision of bill shall be done only after ascertaining the bonafides of the complaint. However, the bill should be paid on or before the due date originally fixed and adjustment, if any, will be made only in the subsequent dues. The amount so paid will be regarded as advance to the credit of the consumer's account until such time as the bills in dispute are fully settled.

55. Revision Of Bills:-

  1. Revision of bills arising out of any reason attributable to the department like defective meter, defective metering arrangement, incorrect application of tariff, wrong billing etc., will be made for the duration of the period for which such revision is called for, subject to a maximum back period of three years from the date of billing.
  2. Revision of bills arising out of any reason attributable to the consumer will be made for the duration for which such revision is called for.

56. Payment Of Bills:-

A consumer must present his bills/cards at the time of payment without which payment will not be accepted. If the consumer is unable to do so for any reason, a duplicate will be supplied to him within 3 days of his application in writing to the effect at the office of issue.

57. Time Of Payment:-

  1. All High Tension bills including those on account of miscellaneous charges, are to be paid within 15 days from the date of issue of bills.
  2. Low Tension consumers, except consumers of agricultural service connections and hut service connections, shall pay their current consumption charges within the time prescribed below:-
  3. In the case of agricultural service connections under Flat Rate system, the charges shall be paid in three equal instalments payable in April, August and December in each year. The instalment shall be payable before the 15th of the respective month.
  4. In respect of Central Government, State Government Public Sector undertaking (State & Central), Municipal/Commune Panchayat buildings, street lights, over-head tanks etc, the consumption charges shall be paid within 60 days from the date of issue of bills.

57-A. Mode Of Payment:-

  1. The Consumers shall pay the power supply charges at the office of issue or at the jurisdictional cash counters in cash or demand draft/cheque drawn on any scheduled commercial bank situated at the headquarters of the office of issue along with the bill and obtain receipt. The policy No. shall be indicated on the reverse side of the D.D./Cheque. If the consumer is willing to pay the power supply changes by means of cheque, prior written approval of the officer of issue of bill should be obtained.
  2. In case the amount is paid at the cash counter in person, bill shall be produced.
  3. The department will accept the cheque from the consumer in good faith and will issue receipt subject to realisation. If the cheque is not realised but returned by the bank, it amounts to non-payment and the consumer is liable for levy of interest and disconnection with 7 clear days's notice.
  4. Payment of cheque/Demand draft sent by post or by money order is also admissible at the consumer's risk, subject to furnishing of Policy Number.
  5. The department will also levy charges for non realisation of each cheque as noted below:-
    1. LT installations Rs. 10/-
    2. HT installations Rs. 100/-
      Besides, the department may refuse acceptance of cheques there after from such consumer.
  6. In respect of power supply charges paid by Money order or where cheque/DD is sent by post, the receipt will be drawn but will not be sent to the consumer.
  7. The consumer may also pay the power supply charges through banks authorised by the department. The date of payment in the bank will be the date of payment of the bill.
  8. If any consumer wishes to make advance payment of power supply bills he may do so. The same will be adjusted towards the periodical bills and will be shown in the bills furnished to the consumer.

58. Disconnection Of Power Supply For Non-Payment Of Power Supply Charges:-

  1. If the consumer fails to pay the bill amount within the period indicated below from the date of presentation of the bill, the department may after allowing 7 days' grace time, without prejudice to any of its rights under the agreement entered into by the consumer with the department, order for supply of energy to the consumer to be stopped forthwith:-
  2. Supply of energy may be restored if the consumer pays all his dues and the charges for disconnection and reconnection of supply of energy. Such suspension of power supply shall not relieve the consumer of any of his obligations under the provisions of the agreement.
  3. Disconnection of power supply will be effected as far as possible before 12 noon and reconnection will be effected on the same day of payment, if possible, or on the next working day.
  4. Disconnection will be normally effected at the department's cut-outs in the consumer's premises. If it is not possible or effective, it will be effected at the pole.
  5. If the consumer produces clear proof of payment at the time of disconnection, the installation will not be disconnected.
  6. If the arrears is Rs.10/- or less, the installation will not be disconnected.
  1. All High Tension bills are to be paid within 15 days from the date of issue of the bill. Bills not paid within the time stipulated will be subjected to a levy of surcharge at the rate prescribed below:-

    All L.T. bills shall be paid within the period mentioned in clause 57(2). Bills not paid as indicated therein will be subject to a charge of 1.5 % per month from 16th day onwards in respect of L.T. industrial consumers and from the 31st day or the day after the due date mentioned in the bill in respect of commercial and domestic consumers. In the case of flat rate payment system of domestic consumers, the outstanding payment towards current consumption charges to be made by the consumer at the end of the six monthly period after the date specified in the bill shall be taken into account for levy of B.P.S.C. of 1.5% per month. The B.P.S.C. will be levied on all belated payments subject to a minimum of Re. 1/- for L.T. consumers and Rs. 100/- for H.T. consumers. In respect of all L.T. consumers' bills, B.P.S.C. shall be levied on full monthly basis irrespective of the number of day involved. No surcharge will be levied on surcharge.

  2. The belated payment surcharge is applicable to all consumers except agricultural services under flat rate system, Pondicherry Government and Central Government departments, and local bodies and Commune Panchayats, diplomatic and consular establishments.
  3. In respect of other charges billed separately like compensation charges, penalty etc. if the charges are not paid within the period specified in the bill, surcharge will be levied at 2% or 1.5% per mensem as the case may be. In the case of short assessment included in a subsequent bill, if no instalment payment is permitted as per clause 61, surcharge will accrue after eight days from the last due date for the payment of the bill in which charges are included, if the bill is not paid. Where the charges are levied only in instalments under clause 61, no surcharge is payable on the instalments remitted according to the schedule of payment. Surcharge is payable on instalments paid belatedly. This surcharge will be calculated from the date immediately following the due date of payment of the defaulted instalment. Along with the payment of the monthly dues on the instalments allowed, the belated payment surcharge on the outstanding amount will also be collected.

60. Minimum Monthly Charges And Waiver:-

  1. The HT and LT consumers shall pay minimum charges every month as prescribed in the tariff rates till the agreement is terminated even if no electricity is consumed for any reason whatsoever and also the charges for electricity actually consumed are less than the minimum charges. The minimum shall be payable even if electricity is not consumed because of disconnection of supply by the department, due to non-payment of electricity charges, pilferage or other malpractices or for any other valid reason like temporary disconnection etc.
  2. In cases where a consumer availing supply is prevented from taking or using energy either in full or part owing to causes beyond his control e.g. strikes, riots, insurrection, command of civil or military or local authority, low water restriction, drought, flood etc., the minimum charges or guarantee will be reduced proportionately to the number of days in the month or the period of restriction in which power could not be used. The waiver of the above minimum charges is subject to the condition that the consumer sends due intimation immediately in writing to the executive Engineer/O&M who is authorised to sanction the reduction of minimum charges or guarantee. The reduction in guarantee will be subject to the express condition that the consumer agrees to the extension of the period of agreement by a like period.

61. Power To Grant Permission To Pay Energy Charges In Instalment:-

  1. Permission to pay energy charges in instalments shall not be normally granted in cases not covered in sub-clause (2) and (3) except with the specific approval of the Head of the Department.
  2. In case of LT consumer where arrears arise due to revision of past bills/assessment for various reasons i.e. defective meter, defective metering arrangement, incorrect application of tariff, wrong billing, revision of tariff, non-receipt of bills for more than 3 months etc., payments in instalments will be permitted.
  3. Each instalment will be equivalent to one month's average bill amount/assessment amount besides the current bills/assessment subject to the maximum instalments being 12 in Nos. The Junior Accounts Officer/Revenue or the officer-in-charge of issue of bill is empowered to grant permission to pay the amount in two instalments, the concerned Executive Engineer/O&M is empowered to grant permission to pay the amount upto 4 instalments and Superintending Engineer / O&M is empowered to grant permission to pay the amount upto 12 instalments as the case may be on receipt of a written request from the consumers and after considering the genuineness of the case. To avail this facility, the consumer should execute an undertaking in the form prescribed by the department Vide Appendix – III

62. Priority For Adjustment Of Payment:-

  1. All payments made py the consumer will be adjusted in the following order of priority, namely :-
    1. Interest/Surcharge on revenue arrears
    2. Revenue arrears
    3. Current power supply charges
  2. Interest/surcharge will be levied on the balance amount due if payment is not made in full (for any reason) on or before the due date.

63. Security Deposit:-

  1. All applicants for supply of electricity, except those covered by sub-clause (2) shall pay initial security deposit before availing of the supply, in cash or in the form of National Savings Certificate or National Defence Certificate or Kisan Vikas pathras or Indra Vikas pathras of Fixed Deposit Receipt or Term Deposit Receipt or Multi Benefit and Old Age Deposit Receipt obtained from Nationalised Banks or any other form of Deposits as approved by Government at the rate fixed by the department from time to time.
  2. The following categories of service connections are exempt from payment of security deposit, namely :-
    1. Service connections for which supply of electricity is free of charge;
    2. Service connections in the name of any Central or State or Union territory Government department;
    3. Service connections to premises occupied by foreign diplomats or consulate establishment, irrespective of whether the service connection is in their names or not;
    4. Service connections in the name of municipalities, commune panchayats or other bodies.
  3. Applicants for supply of electricity for agricultural service connections, other than those eligible for free supply, shall pay security deposit equivalent to six months levy of lumpsum charges notified from time to time.
  4. In the event of the consumer failing to pay to the department any sum that may become due for payment to the department on the dates fixed for payment thereof, the department may, in addition to and without prejudice to the other course of action, appropriate a part or whole of the security deposit and interest thereon towards the sum due from the consumer.
  5. The security deposit for High Tension service connections will be reviewed and refixed once a year in the months of April and May. The average of the current consumption charges for the preceding twelve months prior to the month of April of that Year will be arrived at and a sum equal to two times this average will be calculated. The higher of the two, viz., this calculated amount and the initial security deposit to be held, will be the revised security deposit. If the available deposit is less than the revised security deposit, the balance will be collected as additional security deposit. The review shall take into account the following factors, namely :-
    1. In the case of consumers where there is no change in the contracted demand, the average consumption for the preceding twelve months, after taking into consideration the quantum and nature of restrictions imposed, if any, during that period, shall be the basis.
    2. In the case of consumers who were sanctioned additional demand and availed it during a part of the period, average recorded consumption for the period of review shall be from the date of utilisation of increased demand to the date of review after taking into consideration the nature and quantum of restrictions, if any, during that period.
    3. The demand shall be the contracted demand of the consumer at the time of review.
    4. The rates at which the demand or energy charges shall be calculated, will be tariff rates prevailing as on the date of review.
  6. The security deposit for Low Tension service connections will be reviewed and refixed once in two years in the months of April and May.
  7. The average of the current consumption charges for the preceding twelve months prior to the month of April of that Year will be arrived at and a sum equal to three times this average will be calculated. The higher of the two viz. this calculated amount and the initial deposit to be held, will be the revised security deposit. If the available deposit is less than the revised security deposit, the balance will be collected as additional security deposit.
  8. In respect of agricultural service connections, other than those eligible for supply of electricity free of charge, the review will be conducted with reference to clause 63 (3)
  9. Where the office of a Central Government or State Government or Union territory Government or Local Body is housed in a private building, revision of security deposit based on the increased current consumption shall not be insisted upon provided the following certificate is produced to waive such revision, namely :-
    "Certified that the building having Municipality/Panchayat No situated at belonging to Sri/Smt (Full name & Address) and having Electricity meter bearing consumer No of O&M Section is at present in the occupation of the Government to house the office of (Full name of office) and as the Head of office/department, I am responsible for payment of the current consumption charges. I shall intimate by registered post to the Assistant Executive Engineer/Assistant Engineer /O&M/ as and when the Government vacates the building."
  10. If the consumer does not make payment of the amount of additional security deposit or where the deposit is given in Government Security or National Savings Certificate or Bank Guarantee etc., he fails to replace them by deposit in cash or other approved forms of security when so demanded by the department within the notice period of 30 days, supply to the consumer will be disconnected.
  11. All prospective consumers shall pay, unless exempted initial security deposit to cover three months' power bills in the case of LT installation and two months power bills in the case of HT/EHT installations, worked out on the basis of the estimated consumption as per the Table given below:-
    TABLE
    Type of Installation Estimated consumption per month
    L.T. Installation
    (a) Non-commercial lighting 15 units for every 250 watts or part thereof of sanctioned load.
    (b) Commercial lighting 20 units for every 250 watts or part thereof of sanctioned load.
    (c) Commercial lighting heating and/ or motive power 150 units per KW or part thereof of sanctioned load.
    (d) Irrigation pumpsets Six months levy of lumpsum charges as per tariff in force from time to
    time
    (e) LT Industries 50 units per HP or part thereof of sanctioned load.
    H.T/EHT Installations
    (f) HT Installations 200 units per KVA of contract demand and demand charges for 100%
    contracted demand
    (g) EHT Installations 300 units per KVA of contract demand and demand charges for 100%
    contracted demand

The estimated power supply charges shall include fixed charges, if any, for LT installations and demand charges on 100% contracted demand for HT/EHT installations.

64. Meter Security Deposit (M.S.D):-

All new consumers shall pay security deposits towards the metering equipment in cash or in the form of National Savings Certificate or National Defence Certificate or Kisan Vikas Pathras or Indira Vikas Pathras or Fixed Deposit Receipt or Term Deposit Receipt or Multi Benefit and Old Age Deposit Receipt obtained from the Nationalised Bank or any other form of deposits as approved by Government as per the table give below:-

Sr.no Type of service MSD payable
(a) Single phase L.T. Rs. 200.00
(b) Threephase L.T. Rs. 500.00
(c) Three phase L.T. with CTs Rs. 1,600.00
(d) H.T. / L.T. Trivector meters Rs. 15,000.00

Agriculture and Hut services under L.T. and interstate supply under H.T./E.H.T. category shall be exempted from the payment of the above Deposit.

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