Electricity bill understanding/ Electricity bill simplified


Usually understanding electricity is made very simpler by power distribution companies. Whenever new electricity bill received then everyone reads through it to come to know what is the unit consumption this month and whether this consumption is increasing or decreasing everyone uses some trend analysis.
There are some certain terms which should everyone know before understanding electricity bill.
Electricity bill understanding

Before going in details please look at the bill mentioned above.
Sanctioned Load

When you look at the bill at the top most there is Name and address is printed on the bill. Then there is Sanctioned load which indicates what is the load sanctioned for Industrial or domestic customers. This is usually sanctioned depending upon load connected at the system .
Maximum Demand Indicator
Then there is MDI means Maximum demand indicator which indicates the Maximum demand for the current month billing period this Maximum demand should not exceed Sanctioned load. For Industrial customers if this maximum demand exceeds the sanctioned load certain amount of penalty will be charged to the customers if that MDI kept on exceeding sanctioned load for three billing cycles then load will be enhanced by power distribution companies depending upon maximum MDI of last three bills and security deposit amount will be charged by power discoms in that new bill. Same will be true for domestic customers but no penalty will be charged for exceeding maximum demand.
Power Factor:-
For domestic customers power factor is not of any importance as domestic customers are charged at KWH i.e. kilowatt hour. But for industrial customers Power factor is of prime importance as industrial customers are charged at  KVAH which is will be higher than KWH if power factor will be low. So Industrial customers should keep Power factor to as near possible to 1 so that power charges will be saved for lower power factor. You will easily see that if power factor will be 0.8 then electricity charges will be around 20% then when power factor kept at 1.

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CA and CRN no.
CA No. is customer account no. and CRN is customer relationship no.
Electricity charges:-
Then there is meter no. and KWH /KVAH reading at start of billing cycle and pend of billing cycle along with dates of billing cycle. For domestic customers there will be only KWH reading and for industrial customers there will be KWH as well as KVAH readings and customer will charged depending upon which will be higher.
Billing details:-
Then there is breakup of bill in which there are fixed charges, Billed units, Unite rate depending upon slabs of units, Then there are Slab-wise FPA/PPA charges i.e. FPA—Federal Power Act (US) / PPA—Power Purchase Agreement (electricity) , TOD charges i.e. Time of the day , this means that peak load hours and off peak load hours are described by Discoms.   Then there are surcharges, Electricity tax and at the last are Total charges to be paid by customers. TOD charges are applicable for industrial customers only. Certain rebate and higher charges are charged to customers against TOD for the time interval decided by discom’s. This will attract customer to lower their consumption during peak hours.
Past Dues/ Refund/ Subsidy:-
Then there is column for Arrears/Refunds, Late payment charges, Total payable charges, Rebate/Subsidy and finally new amount payable.
Bill amount Payable and due date of payment:-
In last bold letters there is amount payable for the current period along with due date of payment.
There are column’s for Security deposit with DISCOM for Sanctioned load.
And also there is column for Interest payment against Security deposit. This interest is usually adjusted in bill and same will be mentioned also.
Back side of electricity bill:-
Back side of bill is also very useful and provide very useful information  about electricity charges. There are various slabs mentioned against type of customers.
There is also information about last 6 months bill consumption and charges against that bills.
There is also information about customer complaint no. how to redress the complaints against discoms.




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