How electricity bills work
What each line on an Indian electricity bill means, and why two homes using the same units can pay very different amounts.
The parts of a bill
Almost every Indian electricity bill is built from the same few pieces. The tariff order sets the first two; the rest come from monthly formulas, state laws and your own account.
- Energy charges. Units used, multiplied by the rate for each slab.
- Fixed charge. A monthly amount for keeping the connection, usually per kW of sanctioned load. Some states set it by how much you use instead.
- Fuel and power purchase surcharge (FPPAS, FPPCA, FAC or FSA). Recovers changes in what the discom paid for power. It is recalculated every month and is a percentage or a per-unit figure.
- Electricity duty or tax. Levied by the state government, not the regulator. It is a percentage or a per-unit amount.
- Other lines. Meter rent, regulatory surcharges, cesses, rebates for paying on time or online, and arrears.
Telescopic slabs
In a telescopic tariff each band of units pays its own rate. Moving into a higher slab only makes the extra units dearer.
When the whole bill changes rate
Some states change the rate for every unit once you cross a line. In Kerala, a home that goes above 250 units a month pays one flat rate on all units. In Tamil Nadu, crossing 500 units in a two-month bill moves the home to a table where only the first 100 units are free instead of 200. Near these lines, a few extra units can add a lot to the bill.
Subsidies and free units
State governments often pay part of the bill. Sometimes the regulator’s order already shows the lower rate the household pays (Assam, Tamil Nadu). In other states the subsidy is a separate scheme that appears as a deduction on the bill (Punjab’s 300 free units, Bihar’s 125). Each state page says which applies and whether the calculator includes it.
Sanctioned load
The sanctioned or contracted load is printed on your bill in kW or kVA. It sets the fixed charge in most states and, in some, which tariff category you are in. If your actual maximum demand goes above it, some discoms add a penalty.
Reading your units
Your units are the present reading minus the previous reading, both printed on the bill. If the bill says “average” or “door lock”, the meter was not read and the units are an estimate.
For a field-by-field walk through a real bill layout, see how to read your electricity bill: guides for MSEDCL, Tata Power-DDL, BSES Rajdhani, CESC, KSEB and Goa.
Want to check your own bill? Open your state’s calculator, enter the units and load from the bill, and compare line by line.