# Know Your Electricity Bill

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:** **

**Tariff / Category:**Tariff and Category**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:**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).**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:**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.

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22 Comments on "Know Your Electricity Bill"

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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?

Hi Sonam,

FAC is a variable charge that is determined by electricity distribution company every month. It can be different every month and we do not have information about it. So it is difficult to include that in the calculator.

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

Hi Nadeem,

Connected load should ideally be sum of total watts of all the appliances switched on at any given time. It can be sum of wattages of all the appliances you have if you switch them on all the time. But typically it is approximated to 70% of total wattage at least. Now if we look at your appliances:

Fridge would be about 350-400 Watts (peak)

Geysers will each be 2000 Watts or 3000 Watts depending on the type you have.

1 PC will be about 120 Watts.

Each tubelight would be 45-50 Watts, so 4 will be 200 Watts.

A TV would again depend on Type but if I assume LED TV then it would be less than 100 Watts.

1 Ton AC would be about 1000-1200 Watts.

0.7 kW is super low connected load for your house. In Delhi and UP the utilities are applying penalties for exceeding the connected load and looking at the situation of electric grids across the country it seem soon many states will follow them. To calculate the load, you must sum up all the wattages (divide by 1000 to convert it into kW) and take about 70-80% of that as connected load (assuming max 70-80% appliances will be on at any given time) . In fact the procedure for increasing the same should be simple: you just need to go to customer service desk of your electricity distribution company, give a list of all your appliances and they accordingly estimate the total load that should be sanctioned (there will be simple application for the same).

You would need 3 phase if your total load exceed 5-7 kW (depending on your state). Some states give 3 phase at more than 5 KW, some give it at more than 7 kW.

Whar are NET OTHER CHARGES reflected in Reliance energy bill?

Net Other Charges includes interest on security deposit, prompt payment discount, delayed payment charges, incentive on payment mode, interest on arrears, and other adjustments.

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

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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