Mastering Your Electricity Bill
Understanding your electricity bill is the first step toward reducing your monthly expenses and becoming more energy-efficient. Most utility providers calculate charges based on kWh (Kilowatt-hour), colloquially known as one "Unit". This guide breaks down the components of your bill and offers practical tips to lower consumption.
The Basic Formula
Units Consumed = Current Reading - Previous Reading
Energy Charge = Units Consumed × Rate per Unit
Total Bill = Energy Charge + Fixed Charges + Taxes
Understanding Key Terms
- kWh (Unit): Running a 1000-watt appliance for 1 hour consumes 1 Unit.
- Fixed Charge: A mandatory fee for connection maintenance, regardless of usage.
- Electricity Duty: A government tax levied on energy consumption.
- Slab Pricing: Many providers charge higher rates as your consumption increases (e.g., first 100 units are cheap, next 200 are expensive).
Tips to Lower Your Bill
Small changes can lead to big savings:
• Switch to LED bulbs which use 75% less energy.
• Unplug "vampire" electronics (TVs, chargers) when not in use.
• Service your AC regularly to maintain efficiency.
• Use natural light during the day.