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Understanding Your Electricity Bills 

Arsalan Fazal by Arsalan Fazal
July 18, 2022
in Education
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Sweating out in long queues to pay an essential utility bill is long past, and you can use the online route to avoid disconnecting your electricity connection. In addition, you have an eclectic choice of electricity “Bijli” bill check at the DISCOM portal or any Fintech mobile app facilitating online payment. However, understanding the components of your electricity bill is essential to save energy and the consequent financial outgo. So, let us know different elements of the electricity bill and their impact.  

Understanding Electricity Bill Components:

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The payable amount and the due date is the first thing to note in the electricity bill. But, even when you use the convenient mobile app to clear the electricity bill regardless of the category, you hardly fathom the breakup of the payable amount. For example, UPPCL bill payment online is simple, earning you exciting discounts and cash-back offers without even looking at the bill components. But on the contrary, the electricity bill information gives a good insight into your consumption patterns to help plan money and energy-saving exercise. So, here are the most significant. 

  1. Category:

Your connection category is the primary factor determining the electricity tariff structure. The specific codes are LT (Low Tension – 230V single phase or 400V in three phases) or HT (High Tension – 11KV and above). Residential and small commercial offices are LT connections, while large industries and complexes are HT connections. Accordingly, different slab tariff rates apply, and the information is available in your electricity bill.

  1. Connected Load:

The sanctioned connected load is your meter’s total supply pool. The calculation is typically in kWh, depending on the permissible peak of the connected appliances. In addition, the connected load determines the type, whether single or three-phase, and it impacts the fixed charges in the bill rather than the consumption. Accordingly, every DISCOM considers the following for sanctioning the load.

  1. Constructed area
  2. Load of the connected appliances using the redundancy factor
  3. Unit consumption in kWh.
  1. Unit Consumption:

The most critical information in the electricity bill is the monthly consumed units. With the installation of the electronic electricity meters, reading is simple. Unit consumed during the billing cycle is the calculated difference between the previous and present reading. The usual expression to denote the units is kWh (1 kWh is equivalent to keeping a 100 W bulb for 10 hours).  

  1. Tariff Structure:

The tariff structure defined in slabs by the DISCOMs is according to the consumption pattern. The higher the consumption, the higher the slab rate. However, it applies to LT connections, unlike the HT connections with a flat rate. In addition, your fixed charges increase alongside the higher slab rates when you consume high electricity unit volumes. Use the electricity “Bijli” bill check in the mobile app or the instant printout after the meter reading to calculate your payable amount. 

  1. FAC (Fuel Adjustment Charge):

The FAC applies to each tariff slab as the additional cost of power due to the upward revision of fuel prices. Thus, it applies mainly to coal used for electricity generation in thermal power plants. The charge will likely continue increasing until alternate electricity generating sources do not come up. 

  1. Electricity Duty and Taxes:

Every state defines the applicable taxes and duties based on the Electricity (Duty) Act for various tariff slab rates. You can use the electricity “Bijli” bill check in the mobile app or the DISCOM portal for the requisite information. However, since they are state-specific, there is no uniformity. Accordingly, compare the UPPCL bill payment online with the WBSEDCL bill for the difference, as it is yet to come under the purview of GST.  

You can devise a suitable roadmap for reducing electricity consumption and the consequent financial liability reduction once you grasp the concept of various elements in the bill. Now you know why you must target Units Consumed and Connected Load to reduce your electricity bill besides the taxes and fuel surcharge. 

Conclusion:

While digital payments are the norm for bill payments and recharge using a popular mobile app, it helps if you understand the elements in the bill before transacting. For example, the electricity “Bijli” bill check and payment on the mobile app is uncomplicated, but you must understand the bill contents to save money and energy by reducing consumption. While you can reduce the variable amount in the electricity bill by controlling the Units Consumed, you get the benefit of reduced fixed components like the taxes and surcharge automatically. Moreover, you earn exciting discounts and rewards for paying online.

Ref Links:

https://www.mobikwik.com/electricity-bill-payment
https://www.mobikwik.com/uppcl-online-bill-payment
Know Your Electricity Bill
Arsalan Fazal
Arsalan Fazal

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