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What is a Security Deposit?

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What is a Security Deposit?

30 June 2025 - Author : Aydem Perakende
What is in this article?

When you open the door to your new home for the first time, you want to play music while cleaning or fire up the oven to cook dinner. Electricity is the silent part of these moments, subtly present in every detail even if we don't notice it. So electricity may just be the single most essential item on the list. The security deposit that comes up during the subscription process is often overlooked. So what exactly is a security deposit, and how is it calculated? More importantly, if the subscription is canceled, can this fee be refunded? Below, you’ll find everything you need to know about the security deposit, with all the key details.

 


 

What is the Electricity Security Deposit? Legal Framework

The electricity security deposit is a type of collateral collected by electricity supply companies from their subscribers. Its main purpose is to provide security against potential debts or additional costs that may arise during the subscription process. This fee, which functions as a kind of deposit, is held by the electricity retail company during the subscription period and is refunded if certain conditions are met when the subscription is canceled.

During the electricity subscription process, it is important to understand the difference between distribution and supply companies. The distribution company manages the infrastructure that delivers electricity to you, while the supply company is the one that actually provides the energy. The security deposit charged by the supply company is set at different amounts for residential, commercial, and industrial subscriptions. It is also updated and recalculated each year by the Energy Market Regulatory Authority.

How to Calculate the Security Deposit?

The security deposit paid during the electricity subscription is collected to cover potential risks in case the consumer fails to pay their bills. The calculation of this fee depends on the type of subscription and the connection power of the electrical installation.

  • The connection power of your electrical installation is calculated by taking 60% of the installed capacity. Installed capacity refers to the total capacity of the electrical installation at your place of use.
  • The Energy Market Regulatory Authority (EMRA) sets unit prices for the security deposit per kilowatt (kW) each year for different subscriber groups. These prices may vary for residential, commercial, and industrial subscribers.
  • The determined connection power is multiplied by the unit price for the relevant subscriber group to calculate the total security deposit.

For example, in a residential subscription, let’s say the installed capacity is 10 kW and the unit price set by EMRA is TRY 200.3. Here the connection power is calculated as follows: 10 kW × 0.60 = 6 kW. Therefore, you would need to pay 6 kW × TRY 200.3 = TRY 1,201.80 as the security deposit.

In workplaces, factories, and large-scale facilities, the security deposit is higher compared to residential subscriptions. This is because industrial facilities typically consume more electricity and have higher contract power levels. In these subscriptions, the security deposit is calculated based on the unit price set for each kW of contract power.

2025 Electricity Security Deposit Amounts

As of 2025, the electricity security deposit rates have been updated. Following the new tariffs set by the Energy Market Regulatory Authority (EMRA), the security deposit amounts have been increased according to subscription type. These updated amounts will apply when starting a new electricity subscription or taking over an existing one.

The terms on an electricity bill include the total amount due, the amount of energy used, and additional charges such as taxes. By reviewing your electricity bill, you can see the details related to the security deposit more clearly. You can view the annually determined security deposit amounts by EMRA under the section titled Other Charges Applied to End Users on the institution’s official website.

The updated security deposit amounts for 2025 are as follows:

  • The security deposit for residential electricity use was increased to TRY 200.3 in 2025.
  • The security deposit set for businesses was determined as TRY 569.4.
  • The security deposit specially set for the families of martyrs and war veterans was increased to TRY 100.
  • For electricity subscriptions used for agricultural and lighting purposes, the security deposit is calculated based on a rate of TRY 270.2.

When and How Do You Pay the Electricity Security Deposit?

Before moving into a new home, you need to follow a few steps to complete the electricity subscription process. The tasks to be completed before moving include procedures such as paying the security deposit and transferring the subscription. The timing and method of payment may vary depending on the type of subscription and the policies of the electricity supplier.

The security deposit is paid when the electricity subscription is activated. So, when you become an electricity subscriber for a new home or business, this fee is collected right after the subscription contract is signed. The payment can be made in cash, or in some cases, it may be paid in installments through the electricity bill.

How Do You Get a Security Deposit Refund?

When you cancel your electricity subscription or transfer it to someone else, you can apply to get back the security deposit you previously paid. To cancel your subscription, you need to apply to your electricity retail company and complete the required procedures.

The security deposit is refunded after your final bill is issued and any outstanding balance is paid off. The electricity supplier may perform a final calculation based on your usage and deduct any remaining balance from your security deposit. Therefore, before receiving your refund, you should make sure that your final payment has been completed.

Since the refund will be made to your bank account, you will be asked to provide your IBAN number and identification details accurately during the application. Some companies may request additional documents during the refund process, so it's a good idea to check the relevant company's procedures before applying.

Once your application is completed, the security deposit is calculated according to the current tariff and transferred to your account within the specified time frame. The refund process is usually completed within 5 to 15 business days. If the payment is not made within the expected time frame, you can contact the relevant electricity retail company or file a complaint with the Energy Market Regulatory Authority (EMRA).

Aydem Retail Subscription Procedures and Security Deposit Practices

To start a new electricity subscription through Aydem Retail, you can either apply in person or complete the process through the online system. The documents usually required for a subscription are as follows:

 

  • Identification document or a power of attorney for an authorized representative
  • Title deed or rental agreement for the premises
  • Compulsory Earthquake Insurance (DASK) policy number (for residential subscriptions)
  • Tax certificate and authorization document for businesses

During the application process, you are required to pay the security deposit determined according to your type of usage. Once the payment is completed, the subscription process begins and electricity usage is activated. You can track the security deposit for your terminated subscriptions through Aydem Retail’s official website and get detailed information by using the security deposit inquiry tool.

The security deposit is one of the key charges you will encounter during the electricity subscription process. Knowing how this fee is calculated and how the refund process works can help you manage your budget more effectively.  As of 2025, EMRA does not revise the unit price of the security deposit more than once a year. By following the process correctly, you can avoid unnecessary costs. If you have any questions about your electricity subscription or would like to learn more about the security deposit, you can contact Aydem Retail. Feel free to share your experiences about the security deposit in the comments.

 

 


 

 


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