How to read an Electricity bill?

Published on Sep 9, 2023

One of the questions most often asked of us is how to read an electricity bill. The bill in general is pretty long with various technical terms, making it difficult for most people not from a similar sector to understand and interpret.

In this blog, we demystify this using one of the bills in a picture format!

The below picture explains each of the important terms mentioned in the bill

Also, on the back of the bill, a tariff is usually printed. Though this bill is from a specific DISCOM (Distribution Company), the terms more or less remain the same although the tariff keeps varying. If not printed, you can find the tariff of your respective DISCOM online.

So, how do we know if the billing is right for the number of units consumed?

For better understanding, here is a calculation for a bill of 820 units consumed in a month with a sanctioned load of 5kW.

Assume it is residential and falls under the category of LT-Cat-I(B) ii Domestic.

For 1st 200 units, it is Rs.5 per unit = 200*5.10 = 1020
201- 300 units, it is Rs.7.20 per unit = 100*7.70 = 770
301–400 units, it is Rs. 8.50 per unit = 100*9.00 = 900
401–500 units, it is Rs.9 per unit = 100*9.50 = 950
501–820 units, it is Rs.9.50 per unit = 320*10.00 = 3200
Total variable energy charges = 1020+770+900+950+3200 = INR 6840

If the fixed charge per kW sanctioned is INR 10, then fixed charges = 5*10 = INR 50

If it’s a bimonthly bill, we suggest you divide the ‘x’ billed units by 2 and then follow the similar calculation above for x/2. Multiply it by 2 and you should have your bill for consumed units in the two specific months.

Written by Zodhya

About Zodhya

We are Zodhya, a start-up that provides AI-based tech to reduce energy bills and lower emissions for commercial buildings and industries.