How to Calculate Electricity Bill
09 January, 2024
Synopsis:
- To calculate an electricity bill, start by reading your meter and noting the previous and current month’s consumption.
- The total electricity consumption is found by subtracting last month’s reading from this month’s and multiplying by the local tariff rate.
- You can also use an online bill calculator to estimate your bill quickly by entering basic details like consumption and tariff.
Whether it is your home or your business, you need various types of utilities to keep the operations running. For instance, you need telephones and mobiles to stay connected with people and your need electricity to deal with the heat and the lack of light in your home and office. Every month the electricity board sends you an itemised bill based on your consumption. But did you know that you can calculate electricity bill amounts before the bill is actually generated? Keep reading to know how to calculate electricity bills from meter reading. Also find out how you can seamlessly pay your electricity bills online within seconds through HDFC Bank's PayZapp Online Payment App.
How To Calculate the Electricity Bill?
Here’s a step-by-step guide on how to calculate electricity bill amounts.
Step 1: Metre Reading
The first step to calculating your electricity bill is to read your metre. The majority of current metres are programmed to display your consumption in kilowatt-hours (kWh). It is important to record both the previous month’s and current month’s readings from your metre. This information serves as the foundation for calculating your electricity bill. The metre essentially gauges the amount of electricity you’ve consumed since the last reading.
Step 2: Calculating Electricity Consumption
A simple way to calculate the amount of electricity utilised during a certain billing cycle, is to just subtract the prior month's metre reading from the current month's reading. This computation provides the overall electricity consumption in kilowatt-hours (kWh).
Step 3: Grasping Tariffs
Understanding the different electricity prices in your area is crucial for proper billing comprehension. Tariffs can vary greatly depending on your region and electricity service provider. Tariff prices might also vary based on the consumer type, whether commercial, residential, or industrial. These rates are easily accessible on the distribution company’s website or by contacting their customer care helpline.
Step 4: Energy Consumption Calculation
Once your electricity consumption (in kWh) is determined, it is time to calculate the associated costs. This is done by multiplying the electricity consumption by the applicable tariff rate per unit of consumed electricity. The following is the formula:
| Electricity Cost = Electricity Consumption (kWh) x Tariff Rate per unit electricity consumption |
For example, if your previous metre reading was 1200 kWh and your current reading is 1400 kWh, your energy consumption is 200 kWh (1400–1200). If the tariff rate is ₹6 per kWh, your total energy consumption cost is ₹ 200x6 = ₹1200.
Step 5: Additional Charges and Taxes
In addition to energy consumption charges, the electricity board levies a service connection charge every month regardless of your actual electricity usage or consumption. These rates are fixed and differ depending on whether you have a single-phase or three-phase connection and your consumer category. Plus, you have to pay additional costs like metre rent, electricity duty, a Goods and Services Tax (GST) on energy bills.
While this is one way how to calculate electricity bill, you may use another, quicker method which does not entail manual calculations. Yes, you can use an electricity bill unit rate calculator.
Click here to pay electricity bill online through PayZapp on your IOS phone.
Click here to make electricity bill payment online through PayZapp on your Android phone.
How To Use Electricity Bill Unit Rate Calculator
The steps to use an electricity bill unit rate calculator are as follows:
Login to the website of your city/state’s electricity board.
Go to the ‘self-service’ section and select the ‘electricity bill calculator’.
Choose your supply type (individual, business, etc.) and the applicable tariff options.
Input details like your ‘Sanction Load’, ‘Phase’ and ‘Consumption Information’.
Click on ‘Submit’.
The electricity bill unit rate calculator will instantly compute your estimated electricity bill amount.
Pay Electricity Bills Online with PayZapp
Once your electricity bill is generated, you need to pay it before the due date. One of the easiest ways to make the payment is via HDFC Bank’s PayZapp app. PayZapp allows you to pay all kinds of utility bills in seconds. What’s more, you can set up your electricity board as your biller when you pay your bills on the platform the first time. This facility allows you to initiate one-click payments in future. You can also easily track your transactions, including electricity bills paid over different months under the ‘Passbook’ section of the app.
Download PayZapp for effortless utility bill payments.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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