# What is fixed charge in electricity bill

## What is fixed charge in electricity bill

The Fixed Charge is applied to recover the basic cost of electric service, independent of how much energy is used. It is rent for using Electric’s investment in equipment like poles, wires, and transformers, as well as labor to provide members with safe and reliable electric service. Energy Charge is used to recover energy consumed and fixed charge is used to recover basic cost of electric service and infrastructure used by consumer or we can say indirectly rent for using lines and pole of electricity company.

Fixed charge depends on sanctioned load. means higher the load sanctioned fixed charge will be higher.

## Formula for fixed charge in electricity bill

Fixed charge= Rate * Sanctioned Load

## How to calculate fixed charge in electricity bill

The fixed charge is taken as per the connection load of the consumer and the demand of the meter. If the maximum demand sanction is more than 75% of the load, then

Suppose sanction load of domestic connection is 2 KW.

Fixed Charge = Sanctioned Load (in KW ) * Rate

Example- Fixed charge = 2KW * 90(Per KW) = Rs.180

In case the demand sanction on the meter is less than 75% of the load, then

Fixed Charge = 1.5 (as 75% OF 2KW)*90 = Rs.135

Fixed Charge Electricity Department charges the consumers as a kind of fare. Which is charged in lieu of keeping the connection in the electricity department. Even if a consumer does not spend any unit in a month, the department takes a fixed charge for maintaining the connection.

In electricity bill FC stand for fixed charge. For more information see following video.

## Domestic connection Electricity Fixed charge

What is Energy charge and Fixed charge in UPPCL , Uttar Pradesh. In both domestic and commercial connection fixed charge rate/ kw id described below.

### 1-Rural domestic connection–

a-For Rural Lifeline domestic consumer

Rural Lifeline consumer means those consumers with connected load up to 1 kW and for consurñption up to 100.00 kWh/ month. The Electricity Unit Rate in UP 2021 will as below-

b- Rural domestic consumer (other than lifeline connection)- Means for all connection other than lifeline domestic connection-

i)for unmetered domestic connection-

ii) For metered domestic connection- the fixed charge will be 90 rupees and the unit rate differ according to unit slab.

2-Urban Domestic Connection

a) for urban domestic lifeline consumer Electricity Unit Rate in UP 2021 will be as follow-

b) For urban domestic all consumer (other than lifeline consumer) UPPCL unit rate will be as follow-

## UPPCL Unit Rate For Commercial Connection (LMV -2)

Before describing Commercial connection let us know what is commercial connection.

### What is Commercial Connection –

Premises on which electricity is consumed for all consumers using electric energy for Light, Fan and Power loads for Non-Domestic(commercial) purposes, like all type of Shops including Patri Shopkeepers, Hotels, Restaurants, Private Guest Houses, Private Transit Hostels, Private Students Hostels, Marriage Houses, Show-Rooms, Commercial / Trading Establishments, Cinema and Theatres, Banks, Cable T.V. Operators, Telephone Booths / PCO (STD / ISD), Fax Communication Centres, Photo Copiers, Cyber Café, Private Diagnostic Centres including X-Ray Plants, MRI Centres, CAT Scan Centres, Pathologies and Private Advertising / Sign Posts / Sign Boards, Commercial Institutions / Societies, Automobile Service Centres, Coaching Institutes, Private Museums, Power Looms with less than 5 kW load and for all companies registered under the Companies Act, 1956 with loads less than 75 kW.

## Commercial connection Electricity Unit rate

#### a)-UPPCL unit rate For Rural commercial consumer–

b)- UPPCL Unit rate Urban commercial Connection-

For urban electricity connection, the fixed charge varies according to load

Electricity Unit Rate in UP 2021 for commercial connection are as follow-

### 3 thoughts on “What is fixed charge in electricity bill”

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