Electricity Consumption Bill:
The total electricity bill cost is obtained by multiplying the number of kilowatt-hours consumed by the electricity rate. Households use single-phase energy meters whereas industries use three-phase energy meters and also trivector meters.
A kilowatt-hour is a measurement of how much electricity we use and our electricity rate is how much we’re charged for each kilowatt-hour.
We can find all this information on our electricity bill. Electricity bill is generated every month and the number of charges imposed on our bill is discussed in detail here.
Here is an example taken from the APERC (Andhra Pradesh Electricity Regulatory Commission) Charges.
Types of Energy Charges:
- Energy Charges:
The cost of electricity consumption is calculated based on the kilowatt-hours used. It is the primary component of the electricity bill and is typically charged at a predetermined rate per kilowatt-hour.
Energy charges are the variable component of an electricity tariff, applied to the total volume of energy/electricity consumed during the billing period.
2. Fixed Charges:
The Fixed Charge is designed to recover the basic cost of electric service, independent of how much energy is used. It accounts for Employee salaries, Interest on debts, Interest on capital required for maintenance, various taxes and duties, etc.
3. Customer Charges:
Electricity meters cost, meter reading taken charges, Fuse off call (call center) charges
4. Electricity Duty-ED:
Charges are imposed according to the Electricity duty act per unit of electricity consumption.
5. Surcharges:
It is the interest imposed when payment is delayed, on all payments remaining unpaid for more than the due date from the date of receipt of the bill.
The surcharge for late payment will be reflected in the next bill.
6. ED Interest:
It is the rate of interest on Electricity duty fixed by the ERC from time to time.
7. True-up/True-down Charges:
The difference in amount between production cost and supply cost is called true-up charges.
Among Generating stations, supply, and distribution companies’ a tariff is decided by Electricity Regulatory Commission for the coming 5 years. Later due to the difference between estimation and Actual income and expenditures, true up or true down charges are decided by Discoms and shown in the electricity bill.
8. Fuel and Power Purchase Cost Adjustment (FPPCA):
The amount that utilities place on bills based on the fluctuating price of
fuel or coal is known as the FAC (fuel adjustment charge), FCA (fuel cost adjustment), and FPPCA (fuel and power purchase cost adjustment) adjustment.
9. Shortfall Charges:
Due to the consumers’ meter being faulty, and unable to take the correct reading, later when it is found out by Discoms then it is reflected as shortfall charges in the new bill.
10. ACD Surcharge: Additional Consumption Deposit
Advance Consumption Demand is a charge that is calculated based on your electricity consumption per year.
For example, let’s assume that an electrical connection with a one-kilowatt load capacity consumes more than its capacity. In such a case, the ACD charge gets levied. Whenever a connection exceeds the load capacity, ACD is charged.
11. Adjustment Amount:
If any consumer paid an excess or lower amount than the billing amount, then in the new bill, the difference amount is shown as an adjustment amount.
12. Loss/Gain:
To round off fractions to the nearest rupee, if the fraction was less than 50 paise, consumers would not be charged, but if it was 50 paise or more, it would be rounded off to a rupee.
13. Bill Amount:
The sum of all the amounts is the bill amount.
14. Govt Subsidy:
The government gives subsidies to various categories of people up to some extent. The subsidized amount will be payable by the government to Discoms.
16. Bill after subsidy:
It is the bill after subtracting the subsidy amount.
17. ISD-TDS:
- Input Service Distributor
Input services such as security services, communication charges, courier expenses, housekeeping expenses, accounting services, etc. and pay GST. ISD is an office of suppliers of goods and services. A charge imposed by ISD for distributing the credit on common invoices pertaining to input services only and not goods (inputs or capital goods).
- TDS-Tax Deducted at Source
If a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee.
18. Arrears Before/After:
If any previous arrears amount is pending that is shown in this section.
Net Bill:
After adding arrears the Net bill amount is calculated which has to be paid by the consumer. The due date and disconnection dates are also mentioned here.
