Electricity Saving Tips For Homes And Offices

Electricity Bills and the tariff change confusion

By on January 21, 2014

Ebill Electricity tariff changes happen almost every year. They are difficult both for the consumers as well as utility (distribution companies). For the utilities, generation of electricity bills become challenging due to varied tariffs for various dates. And for consumers, it becomes difficult to understand the tariff applicable for them. We started Bijli Bachao in early 2012 and one of the first things that we came out with was our electricity bill calculator. And it has been one of the most popular calculator on our website till date. Every time there is a tariff change and we get a lot of requests from people to help them validate their electricity bills. And a latest case we got prompted us to write about it.

The case in detail

In one of the states tariff got changed recently and the change was effective from 1st April 2013. The new tariffs that were applicable were as per the energy charge slab plan given below (Please click on this link to understand Energy Charges on electricity bill):

Slab

Rate

0-250 units

Rs 4.9 per unit

251-500 units

Rs 5.6 per unit

501-800 units

Rs 5.98 per unit

But when the electricity bill was received, the details of the bill was as follows:ebillcopy

The person who got this bill was quite confused as the totals on the bill did not match at all (check the slab calculation section).

248 units for Rs 4.9 totals to Rs 1215.2 whereas on the bill it is Rs 1109.6

Similarly the other 2 slabs also did not match up. Also the slab units were confusing as ideally the first slab should have been for 250 units, 2nd for 300 units. But the details on the bill did not match at all.

The reality of the bill

If you look at the bill carefully, the period for the bill is from 25th Feb 2013 till 25th May 2013. Which is about 2 months. The tariff slabs for most utilities are defined for a one-month period (check tariff slabs for various states on our link: Domestic Electricity LT Tariff Slabs and Rates for all states in India in 2013). So in the above case if the rate in the 1st slab was applicable for 250 units in one month, then it should be applicable for 500 units in 2 months, and likewise for all other slabs.

But there was another catch as well, the tariff in the state changed starting 1st April. The old tariff that was applicable before 1st April was:

Slab

Rate

0-40 units

Rs 2.7

41-250 units

Rs 4.5

251-400 units

Rs 5.25

401 and above

Rs 5.6

So ideally all the units from 25th Feb till 31st March should have been charged at older rate and from 1st April till 25th April should have been charged at new tariff.

As there is no way to determine how much was really consumed till 31st March, we can assume that equal number of units is consumed every day. Assuming that, we can say that about 383 units (out of total 665 units) are consumed from 25th Feb till 31st March, and 282 units consumed in month of April.

If we now apply old and new tariffs to the units we get:

For 25th Feb till 31st March the amount should be

Units

Rate

Amount

40

Rs 2.7

Rs 108

210

Rs 4.5

Rs 945

133

Rs 5.25

Rs 698.25

Total

Rs 1751.25

For April the amount should be

R5464

Units

Rate

Amount

250

Rs 4.9

Rs 1225

32

Rs 5.6

Rs 179.2

Total

Rs 1404.2

If we sum it up we should get energy charges of Rs 3155 (1751+1404).  If you look at the bill, the amount charged is Rs 3132.25.

Conclusion

Although the electricity bill looks confusing, the utility or distribution company has tried to adjust it in such a way that the bill value is as close to the actual as possible. This bill that we received was not wrong, but if tariffs have changed in your area recently, please make sure that you validate it before making the payment.

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There Are 2 Comments

  1. Tejaswi S.K says:

    What would be outcome of the following points , In case a residential apartment buys power in Bulk ( HT ) connection,

    1) Responsibility of the Gov power company:- Does it end on the HT side of the HT transformer ?
    2) Switch gear and metering :- Who is responsible to regulate ,calibrate and maintain them , What kind of law governs the installation ,metering . Who has the authority to calibrate the meters when complained to .
    3) What are the procedures to raise a Bill , who has the authority to disconnect a House hold if he fails to pay the bill. What are the sub charges and trafiff for the same .
    4) In the end , Can individual house holds get their personnel “RR” NO or there would be one for the full housing plan

    • Abhishek Jain says:

      Hi,

      When you say “RR” no, I guess you are in Bangalore or somewhere in Karnataka. If that is true then you will have to contact BESCOM/KERC to get the conditions for supply for Bulk HT Power from them, as something like that is not available on the internet. In many other states, the residential societies are responsible for managing the distribution and metering beyond the HT transformer. Typically the builder would have installed the meters and society manages them. The tariff for Bulk HT to residential complexes is less than regular domestic tariff in such case. But to be 100% sure, it is better to contact BESCOM to understand the procedures.

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