How To Read Electricity Bill
1. Customer & Meter Info
Customer details: Name, address, account/reference number, billing month, due date.
Meter info: Meter number, sanctioned/load connection details, current and previous meter readings.
This section confirms your identity and whether meter readings are accurate and timely
2. Units Consumed & Slab/TOU Rate
Units consumed = Current reading − Previous reading — verify by checking your meter.
Consumption structure:
Single-phase uses slab-based billing (e.g., 0–50, 51–100 units, etc.).
3-phase/High-load often uses Time-of-Use (TOU): separate Peak & Off-Peak rates
3. Energy Charges (Variable)
Slab rates (single-phase): Your units fall into rate brackets (e.g., up to 50 units @4 Rs/unit, 51–100 @14.59 Rs/unit, and so on)
TOU (3-phase): Different kWh rates for peak and off-peak hours—e.g., peak ~22 Rs, off-peak ~16 Rs.
4. Fixed Charges & Meter Rent
Fixed monthly charges: Vary by category—for domestic single-phase, it’s typically ₨75, three-phase ₨150; commercial and others differ.
Meter rent/Service rent: Additional fixed monthly fee (e.g., meter rent ₨20)
5. Government Taxes & Surcharges
Fuel Price Adjustment (FPA): Fluctuates with fuel costs for power plants
Financing Cost (FC) surcharge: Fixed ~₨0.43/unit
Tariff Rationalization Surcharge (TRS): Bridges the gap between NEPRA and government-set tariffs
Quarterly Tariff Adjustment: Appears every three months
General Sales Tax (GST): 17% of energy charges
TV Fee: ₨35/month, mandatory even without owning a TV
6. Pro‑Rata & LS/EX Adjustments
If meter reading is not taken exactly at 30 days, MEPCO applies pro-rata. If delayed (>30 days), you get an LS (less supply) adjustment; if early (<30), it shows EX (excess supply)
7. Bill Summary & Total Due
The final section displays a breakdown:
Energy (kWh) × slab/TOU rate
Fixed charges + meter rent + FPA + FC + TRS + QTA + GST + TV fee
= Total payable, along with due date and any deferred amount
Rapid Checklist for Review
Verify current & previous meter readings match your meter.
Confirm units consumed align: (cur – prev) = billed units.
Check whether the slab or TOU rates have been applied correctly.
Ensure all fixed and government charges are itemized.
Confirm LS/EX adjustments if relevant.
Add all components to match the final total due.
Tips from Users
“For 3‑phase meters… peak units are charged at around 48 Rs per unit and non‑peak at 41/unit. Single phase meters use slabs.”
“Slabs changed: now 250 units → 250 x rate of highest slab.”
Inspect your bill closely—especially if you use >700 units; you could be charged flat at the highest rate.
What Are Fuel Adjustment Charges?
Fuel adjustment charges (often called the Fuel Adjustment Clause or FAC) are variable parts of your electricity bill. They adjust your bill up or down depending on the changing cost of fuels—like coal, natural gas, or even electricity purchased from the market.
Why Do These Charges Exist?
Think of the base electricity rate as a budgeted estimate of fuel costs. When actual costs go beyond or below those estimates, the FAC steps in to balance the difference—just like adjusting your grocery budget when prices change.
How Is the Charge Calculated?
Estimate vs. Actual Fuel Costs
Utilities set a base fuel cost when pricing electricity. They compare that with the actual cost during the billing period.Adjusting for Losses and Purchases
In some places (like India), the calculation may also include factors like technical transmission losses or a mix of generation sources:Spread Across Consumption
The difference is then spread across customers according to how much electricity they used in the period.
How Often Do These Charges Change?
Typically, on a monthly or quarterly basis, depending on state rules and utility practices. When fuel prices shift rapidly, you may see noticeable changes in your bill even if your usage stays the same.
Can It Be a Credit or a Charge?
Yes! When actual fuel costs are lower than the base rate, the FAC might reduce your bill. Conversely, if costs are higher, you’ll pay a bit more. This “adjustment” helps keep billing fair and accurate.
Real-World Example
The City of Luling (Texas) describes it simply:
Your base electricity rate stays the same—like a fixed car payment.
The Fuel Adjustment varies—like fluctuations in fuel prices at the pump.
When fuel costs drop, you pay less; when they rise, you pay more.
Why It Matters to You
Transparency: FAC shows the exact impact of fuel cost changes on your bill—no hidden surprises.
Fairness: You only pay what’s necessary—if fuel costs fall, your bill can fall too.
Budget Awareness: Knowing about FAC helps you plan, especially during fuel market volatility.
