Know Your Electricity Bill
It’s veritably important to understand the electricity bill and it’s factors to make plans for energy savings. Our electricity bills have quite a lot of information to give us a good sapience into our electricity consumption patterns. A good understanding of colorful factors can help one plan for plutocrat- saving exercise. To know the tariff of each State applicable for the time in 2022, click then.
- Tariff/ category Tariff and order determine the rate structure applicable to the bill. Typical tariff canons start with LT( Low Pressure 230V single phase or 400 V three phases) or HT( High Pressure 11kV and over).
- LT canons are generally used for connection to domestic, marketable and small services. HT canons are generally used for bigger diligence and complexes. order in the bill determines if the connection is domestic, marketable or artificial.
- Different rates crossbeams are applicable for different tariff canons and therefore it’s important to validate that the right tariff law is applied on the electricity bill. This information is available on bill title as shown below
- Type of Supply & Connected Load ( Fixed charges of each State/ DISCOM) Connected( or Sanctioned) cargo is the total pool of force that’s given to a cadence.
- This is calculated in kW( or Killo- Watts). This is the admissible total peak kW given to a cadence grounded on the appliances connected to the cadence. This isn’t your factual energy consumption and only impacts fixed charges on your electricity bill.
- Connected cargo also determines if the connection will be a single- phase or three-phase.However, also it’ll impact the fixed charges for that month and some DISCOM imposes a penalty of increased fixed charges for the incremental increase of the factual cargo drawn,
- If the factual cargo is more also the sanctioned cargo. Every DISCOM is having a system of calculating the cargo to be sanctioned to the aspirant and should check the website of the company as it varies extensively similar as
- constructed area
- assessment based on the load of the connected appliances and using redundancy factor
- based on the unit consumed in kWh
- and so on
- Below is a screenshot from Reliance Energy bill in Mumbai
- Units Consumed( Unit rates of each State/ Discom) Units consumed is the number of kWh( Kilo- Watt- Hour) consumed in a month. 1 kWh is original to keeping a 100 Watts bulb on for 10 hrs.
- This information is calculated by chancing the difference between cadence readings of two successive months. This is the total yearly consumption by all the appliances that are connected to the cadence. This is the value that needs to come down in order to reduce the electricity bill.
- An observation of consumption history can give an index of the appliances having advanced electricity consumption( generally Air Conditioners increase consumption in summers).
- In case you want to check the likely energy consumption in units( kWh) grounded on the information of appliances connected in your house and average diurnal consumption, you may use this link.
- Tariff Structure It’s veritably important to note the tariff structure on your bill, as this is the stylish index of how the bill can be reduced. generally for domestic and SMB marketable connections, the structure is arbor grounded( unlike artificial connections where units are charged at a high flat- rate).
- The intent behind the arbor structure is to award low energy druggies and charge redundant to those who have high consumption.
- The crossbeams are grounded on the “ Units Consumed ” that we bandied before. As the number of units consumed increase, energy charge changes and also the fixed costs associated( single- phase) with the arbor increases. Below is a sample of tariff structure from a bill from Mumbai
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- Fuel Adjustment Charge( FAC) As you can see in the tariff structure over, there’s a FAC rate applicable at each arbor.
- This is the fresh cost of power incurred due to energy price supplements during a time. Energy in utmost cases is Coal. As per a study, after 2011, the product rates of coal will decline, reaching 1990 situations by the time 2037, and reaching 50 of the peak value in the time 2047.
- So always FAC will increase till alternate sources of electricity aren’t developed to a state where they can induce electricity that cheap. So electricity costs will surely increase in future.
- Electricity Duty/ Taxes ( applicable Taxes of each State) Every state is having an Electricity( Duty) Act wherein the applicable Taxes for different tariff structure is defined and one can check the same in his electricity bill. It may be noted that this duty isn’t under the horizon of GST as one date.