The formula
Bill = Σ(units in each slab × that slab's rate) + fixed charge × sanctioned kW + duty
- units
- consumption in kWh — one 'unit' on a bill is one kWh
- slab rate
- ₹ per unit for the band, applied only to units inside it
- fixed charge
- ₹ per kW of sanctioned load, payable whatever you use
- duty
- electricity duty or tax, a percentage of the energy charge
Worked example
240 units on a 50 / 100 / 200 / above tariff at ₹4.00, ₹5.50, ₹7.00, ₹8.00, with 3 kW sanctioned at ₹100/kW and 9 % duty.
- First 50 units × ₹4.00 = ₹200
- Next 50 units × ₹5.50 = ₹275
- Next 100 units × ₹7.00 = ₹700
- Last 40 units × ₹8.00 = ₹320
- Energy charge = ₹1495 ; fixed = 3 × 100 = ₹300 ; duty = 9 % of 1495 = ₹134.55
₹1929.55. Charging all 240 units at ₹8.00 would give ₹2392.80 — that gap is what telescopic billing is worth.
Where you'll use it
Checking a bill that looks wrong, working out what an air conditioner will actually cost to run, and seeing how close you are to the next slab boundary. Tariffs change every year and differ by state and consumer category, so the rates have to come off your own bill — the arithmetic here is exact whatever you enter.