law: Electricity Act, 2003
  47. Power to require
  
  security.-
  
  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 may be 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 person; or
  b.     where any electric
  
  line or electrical plant or electric meter is to be Provided for supplying
  
  electricity to such 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 of electricity or to
  
  provide the line or plant or meter for the period during which the failure
  
  continues.
  1.     
  
  
  2.     
  
    Where
  
  any person has not given such security as is mentioned in sub-section (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 subsection (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.