1. What is a Telescopic Tariff Slab?

In India, power distribution companies (DISCOMs) use a slab-based pricing system. Your total monthly unit consumption (in kWh) is divided into progressive unit brackets. Units in lower brackets are charged at lower rates, while excess units exceeding higher brackets are charged at higher rates per unit.

Example: If you consume 250 units in a state with slabs:

• 0 to 100 units @ ₹3.00/unit = 100 × ₹3.00 = ₹300

• 101 to 200 units @ ₹4.50/unit = 100 × ₹4.50 = ₹450

• 201 to 300 units @ ₹6.50/unit = 50 × ₹6.50 = ₹325

Total Energy Charges = ₹1,075

2. Fixed Charges (Demand Charges)

Fixed charges (or load charges) are flat monthly fees based on your sanctioned load (in kW). Even if you consume 0 units during a vacation, fixed charges are billed to cover grid infrastructure upkeep.

3. Fuel Adjustment Charge (FAC / FPPCA)

Fuel Price and Power Purchase Adjustment (FPPPA) accounts for quarterly variations in coal, gas, and power purchase costs. It is charged as a small per-unit surcharge on your total consumption.

4. State Government Subsidies

Several Indian state governments offer electricity bill waivers:

Delhi: 100% subsidy up to 200 units per month.
Punjab: 300 units free per month for all domestic meters.
Karnataka: Up to 200 units free under Gruha Jyothi scheme.
Tamil Nadu: First 100 units free bi-monthly.

Energy Saving Guide

Practical Ways to Reduce Your Electricity Bill

Simple household adjustments can reduce your monthly power consumption and keep you in lower tariff slabs.

❄️

AC at 24°C–26°C

Each degree higher saves ~6% electricity. Running at 24°C instead of 18°C can lower your monthly cooling bill by ~24%.

🌀

5-Star BLDC Fans

Brushless DC (BLDC) motor fans consume only 28W compared to 75W for traditional ceiling fans, cutting fan power usage by over 60%.

⚡

Kill Standby Vampires

Appliances in standby mode (TVs, set-top boxes, chargers) consume 5–10% idle electricity. Turn them off at the main switch.

☀️

PM Surya Ghar Solar

Residential rooftop solar installations receive up to ₹78,000 in central subsidies, generating free green power with net-metering.

🧊

Geyser & Fridge Care

Clean refrigerator condenser coils annually and set geysers to 50°C with an auto-timer to prevent overheating and energy waste.

💡

100% LED Lighting

Energy-efficient 9W LED bulbs output the same light as 60W incandescent lamps while consuming 85% less electricity.

Methodology & Breakdown

How Electricity Bill Estimation Works in India

Full Calculation Formula →

Telescopic Slabs

Consumed units (kWh) are split into progressive tariff tiers with respective unit rates.

Fixed Demand Fees

Monthly fixed charges are calculated per kW (or kVA) of sanctioned load.

Surcharges & Duty

Fuel Adjustment Charges (FAC/FPPPA) and state electricity duty percentages are added.

Subsidies Applied

State government zero-bill / free unit schemes (e.g. Gruha Jyothi, DERC) are deducted for the final estimate.

ℹ️

Tariff Estimation Notice:

All calculations and reports on ElectricityBillcalc.com are estimated models computed according to published State Electricity Regulatory Commission (SERC) tariff schedules for FY 2025-26. Actual utility bills may include municipal taxes, meter rent, arrears, or power factor adjustments. Please verify against your official electricity board invoice.

How Electricity Bill Slabs Work in India