In an electricity bill, “ASD” refers to Additional Security Deposit. This is a refundable deposit collected from consumers, especially those with irregular payment histories or significant energy usage, to reduce the risk of non-payment or late payments. This deposit is supplementary to the initial security deposit and is intended to guarantee prompt bill payments.
ASD Full form, Abbreviation, Meaning and Definition
- The Advance Security Deposit (ASD) serves as a protective measure for the electricity provider, ensuring they have a financial cushion in the event of consumer non-payment.
- It may impose an ASD when a consumer’s electricity consumption or payment history suggests an increased likelihood of non-payment or late payments.
- The ASD is a deposit that can be refunded, meaning it will be returned to the consumer once they no longer need the electricity service or when their payment behavior improves.
- Although the ASD is ultimately the consumer’s obligation, in the context of rental properties, it is typical for the landlord to initially cover the ASD, although they may opt to transfer the expense to the tenant.