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How to Calculate Electricity Bill from Meter Reading- All Parameters

How to Calculate Electricity Bill from Meter Reading- All Parameters

How to Calculate Electricity Bill from MeterReading. Friends, today we will discuss how to calculate your electricity bill from the meter reading and how you can estimate the electricity bill amount. Before we learn how to calculate electricity bill from meter reading. You should learn some of the terminologies which are used in the electricity bill.

Prior Information Needed to Calculate Electricity Bill

To calculate the electricity bill there is some prior information needed.

  • Electricity connection details
  • Unit Consumption(Meter reading)
  • Unit rate

First of all, we will know how and from where you can find the above three prior information needed to calculate your electricity bill.

Electricity Connection Details

The most basic thing about your electricity connection which is used to calculate the electricity bill. You can find all your connection details from your old electricity bill.

  • Rate category: The rate category is just the tariff of your connection. Such as your connection may be a domestic connection or a commercial connection or an industrial. So the type of connection decides the rate category.

If you don’t know your rate category, you can find it from your old bill. You can see in the image below I have indicated the rate category. In the different states, you can find it with a different name like category, tariff or श्रेणी, etc.

In the image, you can see the उपभोक्ता श्रेणी as DS-IID. This is your rate category.

  • Sanctioned Load: This is the load of your connection. If you don’t know your sanctioned load you can see it in your old electricity bill. It is written as sanctioned load or SL or स्वीकृत भार or Contract demand or CD or संविदा मांग etc.

In the image below you can see the स्वीकृत भार/संविदा मांग as 2kW. It is your sanctioned load.

  • Connection Phase: This shows that your connection is either single-phase or three-phase. accordingly, meter rent is charged in your bill.Showing connection details to calculate electricity bill

Unit Consumption(Meter reading):

The most important parameter in your electricity bill is unit charge or energy charge. Which depends on your unit consumption. Without this, you cannot calculate the electricity bill.

To find out the consumption of a particular month or after your last bill. you need to get the last reading from your last bill. In your bill, you can find the present reading that will be the last reading up to which your bill has already been billed.

Now you need to check the present meter reading from the meter installed at your home. And the difference between the meter reading of your meter and your last bill will be your consumption.

If you want to recheck your last bill you can just take the consumption unit from your bill. In your bill, you will find both present and past reading and the difference, which is your consumption.Details of meter reading details in electricity bill showing present meter reading and past meter reading

But if you want to check the meter reading from the meter then you can also check it from the meter. Here is how.

How to Check the Present Meter Reading from Meter:

Checking all parameters in the meter and understanding their meaning might be difficult. But to check the present meter reader is very simple. Here is a trick to find the meter reading. Just look for the values having suffix kWh in the meter. As you can see in the below image there is a number 2985 with a suffix a kWh. Now you have to find all the values having suffix kWh and write them down on paper. The value which is maximum among the all is your present meter reading. It is just as simple.

Meter reading in a digital meter

Unit Rate :

Now we have our connection details and unit consumption. But to calculate electricity bill from meter reading we need the unit rate and some other details like fixed charges rate, meter rent etc.

To check the unit rate in your state, you need to visit the official website of your utility company. Here look for tariff schedule, tariff rate, tariff, or rate schedule etc. In that page, you have to check the rate for the category that we found in the heading Electricity connection details. The rate chart will look like the image below.


Here you can see that the rate is divided into the different slab. That is for different consumption there is a different rate. The unit slab is for 30 days. It means that, first of all, we will find out the consumption of 30 days then we will calculate it in their slab rate. if your unit consumption While calculating the bill we see more detail about it. After these all details, we are ready to calculate the electricity bill from meter reading.

How to Calculate Electricity Bill from Meter Reading:

Before calculating the electricity bill we will write down all the data we have collected above. You can write down your own.

First, we will write down the connection details. In my case

  • Rate Category: DS-IID
  • Sanctioned load: 2kW
  • Connection phase: 1Ph

Second I will write unit consumption for the period of which I need to calculate the bill. Here I will take the data from my bill. Here

Previous meter reading = 6916 kWh (reading date- 21.05.2020)

present meter reading = 7124 kWh (reading date- 15.06.2020)

Unit consumption = 7124-6916 = 208 kWh or Unit. This is the consumption of 26 days. And the last one is the Unit rate. The unit rate that I will use is as shown in the above section named Unit rate.

The Major component of an electricity bill is energy charge or unit charge, fixed charge, government tax and government subsidy(if any).

Energy charge:

Our unit consumption is 208 unit for 26 days. To calculate it in a proper slab rate first we have to find the consumption for 30 days.

So, the consumption for 30 days =(208/26)*30 = 240 Units

Now the Energy charge for 240 Units is as below:

for 1-100 Units: 100×6.05= 605/-

for 101-200 Units: 100×6.85=685/-

and for 201-240 Units: 40×7.70=308/-

That is total= 605+685+308= 1598/- (It is the unit charge of 240 Units or for 30 days).

Now the total unit charge for 208 unit of for 26 days = (1598/30)x26 =1384.93/-

Fixed Charge:

The fixed charge is charged according to your sanctioned load. In our case sanctioned load is 2kW. In the unit rate chart, you can see the fixed charge for our DS-IID category is Rs. 40/kW/month.

So, Here the fixed charge for 2kW and for 26 days = 40x2x(26/30)=69.33/-

Government Tax:

Taxes are different in different states. For example, in Bihar, it is 6% of the energy charge. In UP it is 5% of energy and fixed charge.

So, Here the government tax called electricity duty = Energy charge x 6% = 1384.93x(6/100) = 83.10/-

Government Subsidy:

Government subsidy is also different in different states. There might be no subsidy in some states. In Bihar, it is Rs.1.83/Unit for DS-IID category.

So, here the government subsidy = 208 x 1.83 = 380.64/-

Other than these charges there might be some miscellaneous charges which are relatively small in values. such as meter rent, delay payment charge, rebate etc.

Now as per our above calculation current bill amount = energy charge +fixed charge+govt. tax-got. subsidy = 1384.93+69.33+83.10-380.64 = 1156.72/-

If there is any arrear or previous dues then it will be added to this and that will be the net payable amount. 

Understand the parameters of the electricity bill you can read this article.

Check the old electricity bill and previous payment history you can read this article.

Know more about electricity bill you can also follow me at youtube.

How to Use Bihar Bijli Smart Meter App

Strategy: How to Calculate Electricity Bill from Meter Reading:

To calculate the electricity bill first of all need to collect the information about your electricity bill. Second, you have to find the rate chart for your connection. then you can calculate your electricity bill.

I hope you have learned how to calculate electricity bill and liked the article. If you have any doubts or suggestion please comment below and share with your friends. It will help me a lot. Thank you.

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About Amit Kumar

I am an Electrical Engineer and currently working as an Assistant Electrical Engineer in a distribution company. I am working with a distribution company for more than nine years. So here, I try to share my experience and knowledge to solve real-life problems related to electricity and electricity bills. More Posts

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