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Home / Rent and Lease / Who should pay ASD amount owner of land or tenant?
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Who should pay ASD amount owner of land or tenant?

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1 2023-11-09T20:38:36+00:00

I recently asked my father: Is ASD to be paid by owner or tenant? He said that when a property is rented, the landowner is responsible for paying the ASD. This is because they are the ones who benefit from the property's appreciation. Let’s learn more about this in detail below.

Who Should Pay ASD in Electricity Bill?

As I mentioned above, the property owner is always responsible for paying the ASD amount. Only the consumption fees related to the meter that is appropriate to his place of occupancy must be paid by the tenant.

Nonetheless, the landlord and renter are free to determine by mutual agreement who will be responsible for payment. A tenant shouldn't ideally be required to pay the ASD amount because, in the case that it was refunded, the landlord will receive it. 

After collecting the interest owed on the available credit, the Electricity Department often evaluates the Security Deposit (SD) for LT customers on a regular basis. The remaining amount is taken out as an ASD if the available deposit is lower than the reviewed security deposit. The service may be disconnected if the outstanding balance is not paid by the deadline. 

When deciding who should pay the ASD, governments ought to take the possible effects on property development and rental affordability into account. I hope you got an answer to who should pay ASD owner or tenant.

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What is ASD in BESCOM bill?

Hello,

When a piece of property is rented out, the owner is responsible for paying the Additional Security Deposit (ASD). It is up to the landlord and renter to decide who will be liable for making the ASD payment in the interim. Therefore, you two can agree on who would pay the ASD for the rented house.

After taking into account the interest owed for the credit provided, the Electricity Department typically periodically evaluates the sufficiency of the Security Deposit (SD) in the case of LT consumers. The remaining amount is collected as an additional security deposit if the available deposit is less than the reviewed security deposit (ASD). The service is subject to being disconnected if the remaining balance is not paid by the deadline. Therefore, any such demand made by the Department shall be borne by the Licensee in whose name the Service Connection is granted. Of course, the landowner is free to require his tenant to join in the sudden need for a large sum; it just depends on whether they can come to an agreement.

I hope this answers your question.

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