How to calculate electricity bill? Steps with formula

It is quite well-known and widely understood that all of us are very much dependent upon electricity. Even if we weren’t earlier, the digital revolution has ensured that we desperately need constant access to electricity so that we can go on with our daily lives. As a result of this revolution, our electricity consumption has increased by leaps and bounds. With so much usage, it is quite apt that our electricity bills are not going to come down significantly. Now, many people wish to know how electricity bill is calculated, when they are making electricity bill payment online through Airtel Thanks app. You can refer to our other blogs how to pay electricity bill online.

Airtel Thanks helps them to understand the monthly usage and makes the process of utility bills payments simpler. You can also use the app to find electricity bill payment history for your reference. Understanding how to calculate electricity bill from meter reading can also be used to bring down the bill accordingly.

How to Calculate Electricity Bill Online

Before we go deeper into it, you should understand that there is no hard and fast electricity bill calculation formula which will help you derive the electric bill. Instead, you can visit the official website of your electricity supplier and see the results there yourself.

Follow these simple steps:

1. Use your credentials to log in to the electricity board’s official website
2. You will come across a web self service section on the website, select that option
3. Now you will see an online energy bill calculator option, choose that
4. From the options provided, select the supply type and tariff accordingly
5. Input the details such as consumption, load, phase, etc.
6. Click on submit. You will see the accurate electricity bill.

Note: The website for each electricity board may vary from one region to another region.

Electricity bill calculation formula

You can also calculate the electricity bill yourself, if you feel that the online mode is not suited for you. Here’s how to do it:

Let us take the example of WBSEDCL here, as a reference point for better understanding.

1. First, subtract the current meter reading from the reading of the previous month. This way you’ll be able to see the meter reading only for the current month.
2. Now you have the exact energy consumption values.
3. Proceed to calculate the energy bill according to the slab charges.
4. WBSEDCL charges ₹5.37 per unit from unit 1-102, ₹5.97 per unit from 103-180, ₹6.97 per unit from 181-300 units and so on.
5. Now let us say you have used 250 units in the current month. Therefore, you have to pay according to the slab.
6. Finally, the total energy bill will also have to include the additional fixed charges and the electricity duty, as determined by the board.

Refer to the below list to get familiar with electricity bill relevant terminologies.

Key terms for calculating electricity bill

• Unit : Unit on your electric bill means that you have used 1kWh of power.
• Units Consumed: This is derived from your meter that is installed in your residence. It denotes the total amount of electricity that you have consumed in a time period.
• Fixed Charges: No matter how many units of electricity you use, you will always be asked to pay for the fixed charges. These are meant to cover the basic cost of electricity services, such as labor, maintenance of electric poles, wires etc.
• Electricity Duty: Enabled by some of the states in India, electricity duty depends upon how much electricity you consume. If you consume more power, you will surely have to pay more duty. If you wish to reduce the electricity duty, the only way to do so is to reduce your monthly consumption.
• Tariff Structure: The tariff structure determines how much you pay for your electric bill, in total. It is a combination of various rates, additional charges for extra units that you use and the other rules that have been put in place by your electricity provider.
• Tariff Category: This category determines whether your connected power line is being used for domestic, agricultural, commercial, or industrial purposes. Your rate structure is decided upon after a category has been assigned to you.

Although, you can calculate the electric bill manually, it can prove to be a cumbersome process. Additionally, you may not be able to find out the exact values. As a result, it is always easier to simply use the electricity board’s website to check electricity bill amount.