DISCOM (electricity board) tariffs vary widely by state and consumer category. The presets below are illustrative sample slabs only — select "Custom" and enter your own DISCOM's actual tariff for an accurate estimate.
Consumption Details
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Total Bill
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Energy Charge
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Fixed Charge
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Electricity Duty
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Effective Rate / Unit
Slab-wise Break-up
| Slab | Units Billed | Rate (₹/unit) | Cost |
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How Electricity Bills are Calculated in India
Most Indian electricity distribution companies (DISCOMs) bill domestic consumers using a slab-wise (tiered) tariff — the first block of units is charged at a lower rate, and each subsequent block at a progressively higher rate. On top of this, bills add a flat fixed/meter charge and an electricity duty.
Why slabs instead of a flat rate?
Slab pricing is a deliberate policy choice, not just a billing quirk. Charging a low rate for the first block keeps electricity affordable for low-consumption households, while progressively higher rates on additional blocks price high consumption closer to its real cost and encourage conservation — using more pushes your entire additional usage into a costlier slab.
The three charges on your bill
| Charge | What it is | Why it exists |
|---|---|---|
| Energy charge | Slab-wise cost of units consumed | Recovers the cost of the electricity you actually used, priced progressively by slab. |
| Fixed / meter charge | Flat monthly amount | Covers the discom's cost of maintaining your connection and meter, regardless of usage. |
| Electricity duty | % of energy charge | A state government tax on the energy charge — collected by the discom but remitted to the state, not kept as revenue. |
Why do rates differ by state and discom?
Each state's electricity regulatory commission sets its own tariff order based on that state's generation cost, subsidy policy, and the local discom's finances (e.g. BESCOM, MSEDCL, TNEB, BSES). Since these inputs vary by state — and sometimes by discom within the same state — there's no single national tariff.
How to calculate your bill, step by step
- Enter the Units Consumed (kWh) shown on your meter reading or previous bill.
- Choose a sample Tariff Plan, or select Custom to enter your own discom's actual slab limits and rates.
- Enter your Fixed / Meter Charge and Electricity Duty percentage, matching your latest bill.
- Click Calculate Bill to see your total bill, energy charge, fixed charge, duty and effective rate per unit.
- Scroll down to the slab-wise breakup table to see exactly how many units were billed at each rate tier.
What this calculator doesn't include
- Fuel/power purchase adjustment (FPPA/FAC) charges — a variable surcharge some discoms add between tariff orders to recover fuel or power-purchase cost changes.
- Meter rent and government subsidies, which some states apply separately.
- Use the "Custom" tariff option and enter your own discom's actual slab limits and rates for a far more accurate estimate than the sample presets.
Frequently Asked Questions
Slab-wise (tiered) billing charges a low rate for essential, low-volume usage and progressively higher rates as consumption rises. This is a deliberate policy choice by Indian state regulators to keep electricity affordable for low-consumption households while pricing high consumption closer to its real cost — it also encourages energy conservation, since using more pushes you into a costlier slab.
Energy charge is the slab-wise cost of the actual units you consumed. Fixed (or meter) charge is a flat monthly amount billed regardless of usage, covering the discom's cost of maintaining your connection and meter. Electricity duty is a separate state government tax, calculated as a percentage of the energy charge, and is not kept by the discom — it's remitted to the state.
Each state's electricity regulatory commission sets its own tariff order based on that state's power generation cost, subsidy policy, and the finances of its local discom (e.g. BESCOM, MSEDCL, TNEB, BSES). Since these inputs vary by state, and sometimes by discom within a state, slab limits, rates, fixed charges and duty percentages all differ — there's no single national tariff.
FPPA (Fuel and Power Purchase Adjustment) or FAC (Fuel Adjustment Charge) is a variable surcharge some discoms add to recover changes in the cost of fuel or purchased power since the last tariff order was set. It isn't modelled in this simplified calculator since it changes periodically — check your latest bill for the current rate if your discom applies one.
Since slabs are based on total monthly units consumed, reducing peak-hour usage and improving appliance efficiency (5-star rated ACs, LED lighting, avoiding standby power draw) lowers your total units — which can push your bill into a cheaper slab and reduce your effective rate per unit, not just your total consumption.
The default LT-1/LT-2 slabs are illustrative examples, not your discom's actual rates. Since tariffs vary by state and discom, selecting Custom and entering your own bill's slab limits, rates, fixed charge and duty percentage gives a far more accurate estimate than the sample presets.
It doesn't include FPPA/FAC fuel surcharges, meter rent, government subsidies, or GST-equivalent cesses some states levy separately from electricity duty. It models a single flat percentage electricity duty on the energy charge, which matches most but not all state tariff structures.