How to Calculate Your Electricity Bill from Meter Readings (Step-by-Step)

Look at your digital electricity meter or latest bill to find two numbers: your Current Reading and Previous Reading in kWh (kilowatt-hours).

Total Units (kWh) = Current Reading − Previous Reading

For example, if your previous reading was 14,250 kWh and today's reading is 14,570 kWh, your total consumption for the billing cycle is 320 units.

Every Indian electricity bill is made up of 5 distinct components:

1. 1. Energy Charges: Units broken down into telescopic slabs (e.g. 0–100 u @ ₹4.50, 101–300 u @ ₹7.50, 301+ u @ ₹10.50).
2. 2. Fixed / Demand Charges: Mandatory monthly meter connection fee based on your sanctioned load (e.g. 3 kW × ₹70/kW = ₹210).
3. 3. Fuel Adjustment Charge (FAC / FPPCA / PPAC): A variable surcharge per unit to cover coal and power purchase cost fluctuations (e.g. 320 units × ₹0.45/u = ₹144).
4. 4. State Electricity Duty / Tax: State tax percentage applied to the energy + fixed charge base (e.g. 9% to 16%).
5. 5. Government Subsidies: Direct deductions credited by state schemes (e.g. Delhi 200 free units or Karnataka Gruha Jyothi).

Total Bill (₹) = Energy Charges + Fixed Charges + Wheeling/FAC Surcharges + Electricity Duty − Subsidies