Electricity Bill Explained

Understanding how your electricity bill is calculated is key to saving money and avoiding surprises. Below you'll find a simple, actionable guide to break down your bill and resolve common issues.

1. Charge Categories

• Fixed charges: A standard monthly cost.
• Variable charges: Based on your actual power use (measured in kWh).
• Fuel surcharges: Adjusts for the fluctuating price of energy sources like coal or gas.
• Taxes: State or federal government levies can add a percentage to your total.
• Slab rates: The more you use, the higher your per-unit charge after set thresholds (slabs).

2. Sample Bill Breakdown

Consumer No: 12345
Units used: 380 kWh
Slab 1 (0-200): 200 kWh × ₹5 = ₹1000
Slab 2 (201-400): 180 kWh × ₹6.50 = ₹1170
Fixed Charge: ₹150
Fuel Surcharge: ₹125
Tax (10%): ₹245
Total: ₹2690
    

3. How Meter Readings Work

• Check if your bill is based on a physical or estimated reading.
• Be aware of the 'multiplier'—commercial meters often multiply your reading.
• Track your meter numbers monthly to spot overcharging early.

4. Disputing Bill Errors

If you spot an issue:

1. Contact your electricity provider with a photo of your meter display.
2. Request a revised bill in writing.
3. Use this template: Bill Dispute Email Draft

5. Downloadable Bill Checklist

• Click here to download a one-page bill audit checklist