# Electricity bill calculation formula

## Electricity bill calculation formula

If we know the reading of the current month and the previous month then we can calculate the electricity bill for one month. In this article, we will learn how to do the electricity bill calculation formula. From the meter, we have to note down the present month’s unit (kwh) and kw reading, and the previous month’s unit(kwh).

## How to get a reading from the meter

There are electrical term has to be noted from the electric meter :

To know how to read the meter see the following video :

## What are Energy charge, fixed charge, and electricity duty

Electricity Charges applied to the electricity bill
Energy charge – This charge is for energy consumed during the month. its means this is the cost of energy used during a specific time period.

Fixed charge – This charge is applied to maintain the electricity supply to the consumer. This is applied to recover the labor and service charge by the electricity company.

Electricity duty – This is an electricity service tax applied by the country’s government.

## Electricity bill calculation formula

For calculation of electricity bill, we need to know the reading of present month and previous month –

Formula for electricity bill calcualtion will be as follow-

ENERGY CHARGE (EC)= UNIT CONSUMED * Unit Rate

FIXED CHARGE (FC) = MAXIMUM DEMAND * Fixed rate charge

ELECTRICITY DUTY (ED) = (ENERGY CHARGE + FIXED CHARGE)* Tax Rate (in %)/100

### Electricity bill calculation with an example

Let us take a 2 kW domestic connection with the current month unit is 300 units and the previous month unit is 500 units.

### Energy charge (EC)

UNIT CONSUMED = CURRENT MONTH UNIT( KWH) – PREVIOUS MONTH UNIT(KWH)
= 500 -300 = 200 unit(monthly consumption)

since rate slab is different for different range of unit so the Energy charge for 200 Units is as follow:

for 1-100 Units: 100×3.35=335/-

for 101-200 Units: 100×3.50=350/-

That is total= 335 +350 = 685 Rs (It is the unit charge of 200 unit for 30 days).

## Fixed Charge

The fixed charge is charged according to the maximum demand /connected load (kW reading) load. In our case maximum demand /connected load is 2kW. In the unit rate chart, in uppcl as fixed for domestic connection is 90 rs/kw/ month

So, Here the fixed charge for 2kW = 90x 2kw=180 Rs/month

## Electricity duty

Electricity duty means tax will be

Electrcity duty (ED)= (ENERGY CHARGE + FIXED CHARGE)* Tax Rate (in %)/100

= (685+180)*5/100= 43.2 Rs

Total bill for one month will be

= ( energy charge+ fixed charge+ electricity duty)

= 685+ 180+43.2= 908.2 Rs.

## Electricity bill calculator

Related article :

### 3 thoughts on “Electricity bill calculation formula”

1. Are we required to add charges (to fixed charges+energy charges) like wheeling charges, regulatory asset charges, fuel adjustment charges, TOD charges, Penalty for exceeding load charges, penalty/incentive for power factor charges, Electricity tax etc?
This we are talkng about Mumbai.
Kindly guide.
Thanks
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