Electricity Saving Tips For Homes And Offices

Know Your Electricity Bill

By on April 27, 2015

It is very important to understand the electricity bill and it’s components to make plans for energy savings. Our electricity bills have quite a lot of information to give us a good insight to our electricity consumption patterns. A good understanding of various components can help one plan for money saving exercise. In this article, we will discuss various sections/information on electricity bills that are important: 

Electricity Bill
  • Tariff / Category: Tariff and Category determine the rate structure applicable on the bill. Typical tariff codes start with LT (Low Tension) or HT (High Tension). LT codes are typically used for residential connections and small offices . HT codes are typically used for bigger industries and complexes. Category in the bill determines if the connection is residential, commercial or industrial. Different rates/slabs are applicable for different tariff codes and thus it is important to validate that the right tariff code is applied on the electricity bill. This information is available on bill header as shown below:bill header
  • Type of Supply & Connected Load: Connected Load is the total pool of supply that is given to a meter. This is calculated in kW (or Killo-Watts). This is the total peak kW given to a meter based on the appliances connected to the meter. This is not your actual energy consumption and only impacts fixed charges on your electicity bill. Connected load also determines if the connection will be a single phase or three phase. If load is more then supply is three phase and thus fixed charges are more. Utilities also charge more fixed cost for incremental connected load. Below is a screenshot from Reliance Energy bill in Mumbai:connected load
  • Units Consumed: Units consumed is the number of kWh (Killo-Watt-Hour) consumed in a month. 1 kWh is equivalent to keeping a 100 Watts bulb on for 10 hrs. This information is calculated by finding the difference between meter readings of two consecutive months. This is the total monthly consumption by all the appliances that are connected to the meter. This is the value that needs to come down in order to reduce the electricity bill. An observation of consumption history can give an indictor of the appliances having higher electricity consumption (typically Air Conditioners increase consumption in summers).units consumed
  • Tariff Structure: It is very important to note the tariff structure on your bill, as this is the best indicator of how the bill can be reduced. Typically for residential and SMB commercial connections, the structure is slab based (unlike industrial connections where units are charged at a high flat rate). The intent behind the slab structure is to reward low energy users and charge extra to those who have high consumption. The slabs are based on the “Units Consumed” that we discussed earlier. As the number of units consumed increase, energy charge changes and also the fixed costs associated with the slab increases. Below is a sample of tariff structure from a bill from Mumbai:tariff structure updated
  • Fuel Adjustment Charge (FAC): As you can see in the tariff structure above, there is a FAC rate applicable at each slab. This is the additional cost of power incurred due to fuel price increments during a year. Fuel in most cases is Coal. As per a study, after 2011, the production rates of coal will decline, reaching 1990 levels by the year 2037, and reaching 50% of the peak value in the year 2047. So invariably FAC will increase till alternate sources of electricity are not developed to a state where they can generate electricity that cheap. So electricity costs will surely increase in future.

Understanding the elements of electricity bill mentioned above can help you understand your electricity bill and will also help you to plan your electricty consumption reduction project. Two things that should be targeted are: Units Consumed and Connected Load. Reduce the two and your electricity bill will surely come down.inforgaphic17



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41 Comments on "Know Your Electricity Bill"

If you have any question or comment, please leave a message here. We try to reply to questions in the sequence they come in. We work from Monday-Friday 10AM-7PM. If we know the answer we try to reply to the question within 3 days.

Guest
Anand Kumar
July 15, 2015

I just moved to a rented home few months back in panchkula,haryana. Electricity bill for my place is same from past 10 months which shows only amount to cover MMC. I dont understand why the units consumed is ame and being charged the same amount.please let me know what to do.

Guest
Ashish
June 28, 2015

Hi, We were out of station ou electricity bill come around 50, but after cming and using the flat for 15 days electricity bill still came around 50 , what should i do??(I live in Maharashtra)

Guest
pranati
June 16, 2015

i am from hyderabad,telangana.i was out of station and my flat was lying vacant. so there is no electric consumption. do i need to pay bill for non-consumption also? is there any minimum bill or something like that

Guest
pranati
June 16, 2015

thx for the prompt response BB team. How can i know if my flat electrical connection is single phase or three phase?

Guest
ujval
June 11, 2015

I am staying in a rented accomodation in Secunderabad(telangana) .I went on a vacation from may 8th to june 6th 2015.Approx a month.units consumed during this period are 118 .what should be the bill for same leaving customer charges or surcharge duty etc .wantvto know the bill according to just the units used

Guest
Mageshwaran
June 6, 2015

HI i am running a shop in telengana and i am getting huge bills above 7000 rs and i suspect that it is because of 3 phase and i want to know the proce to convert my meter from 3ph to single phase.

Guest
mageshwaran
July 8, 2015

Hi Team, my bill has shot upto 9000 now and i am seriously thinking about the conversion of 3 phase to single phase but i need to know if the board would permit me to do so as my contracted load 14.000kw but my connected load says 2.53HP now my question is HP greater than KW or vice-versa. i am so concerned because the same load and appliances are used in my brothers shop in a different area with in hyderabad,but his bills has never gone up over rs3500.i have spoke to the electricity guy about the same he is not keen in hearing as he dosent want to interrupt this huge bills.
Now tell me the way to sort this problem out and the proper approach to solve the same….

Guest
mageshwaran
July 9, 2015

HI Team,

Please find my EBill and list of appliances that i use and please help me
in rectifying this issue as it is getting very hectic on my pocket.

List OF Appliances Used:-

1)1 voltas display refigerator and 1
dislpay icecream refigerator

2)3 fans

3)4 tube lights

4) 4 low voltage dislpay lights

5) Weighing machine (10kg capacity)

6) Front lights

7) Desktop (hardly used)

I tried attaching my bills to the reply email but it bounced can you share a valid mail id so i send my bills for you analyze the issue

Guest
mageshwaran
July 11, 2015

Hi Team,
Thanks for the response.one more thing my electrician suggesting is that: Now currently all the appliances are running on one phase of the total 3 phase..now he is saying that dividing the load among all the three phases would reduce the bill..is that a correct suggestion bcoz he is asking me to get 720 wire and he will give this 2 fridge connection to those two idol phases.not sure is that right approach please suggest

Guest
sonam
May 20, 2015

When i calculated my electricity bill online through bill calculator there FAc charges were shown nil whereas in the soft copy i am charged and amount is rs 529. So why did online bill calculator showed nil charges then?

Guest
Nadeem Shaikh
May 15, 2015

I just want to know the connected load funda.. Now my bill shows connected load as 0.70 kW and I have a regular connections in my house i.e.fridge,geysers,1 pc, 4 tubelights, fan, tv
My society is going for a upgrade of the meter cabin and they want a 3 phase connection. In total there are 30 meters and only 1 person is changing to 3 phase meter but connection will be available to all. An average house here consumes 10 units a day. Also in future I want to install around 1 AC in my house of around 1 ton
So how much connected load should I have as I think Now it’s too much less. And what impact connected load will have on my bills and what is the procedure to increase it? Please do help as I’m a bit confused now regarding this issues.
Regards
Nadeem Shaikh

Guest
Raghunath Kulkarni
April 27, 2015

Whar are NET OTHER CHARGES reflected in Reliance energy bill?

Guest
RAM NARAYAN SAH
November 18, 2014

IT’S A REQUEST I WANT TO KNOW MY ELECTRICITY BILL AMOUNT OF THIK MONTH KINDLY HELP US.

Guest
NARKHEDE S.A.
November 2, 2014

PLZ. ILLUSTRATE COST OF POWER SAVING ACHIEVED IN FOLLOWING CASE-
MACHINARY USED FOR KWH METERING AS FOLLOWS-
TIMER USED- MAKE -KAYCEE, MODEL- DTTKH,
ENERGY METER- MAKE- SELEC, MODEL- EM306A
CT’S- 75/5
LOAD CONNECTED- 15 HP, 1440, 3 PHASE, 415 V, 50 HZ MOTORS.
CASE 1- WITH VFD AND CASE 2- WITHOUT VFD (STAR DELTA STARTER)
READINGS COLLECTED IN CASE 1 (WITH VFD)- HR. METER-467.16 HRS., KWH METER- 5684.7 KWH;
READINGS COLLECTED IN CASE 2 (WITHOUT VFD)- HR. METER-469.5 HRS., KWH METER- 8161.2 KWH;
ILLUSTRATE POWER SAVING IN UNITS/HR BY USING VFD. PAYBACK TIME.

 
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