Understanding reliance energy electricity bill – home loans everything you want to know switchme gas oil mix ratio chart

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We use electricity almost every moment of our life and pay bills every month but seldom understand the bill that we pay. It is only when the bill becomes high we want to understand it. Here is a short guide to understanding electricity bill sent by Reliance Energy in Mumbai for residential customers. Tata Power’s bill is more complex and would be explained in the next post. gas in oil briggs and stratton engine Similarly commercial bills are a different subject altogether and not covered here. The details of the bill are at the back of the bill on top left hand corner and would look something like the image above. The first item is fixed charge. This is like a rental for the meter. This depends upon three factors – customer classification, consumption band and nature of electricity meter. If the customer is classified as below poverty line (Less than 30 units’ consumption in a month), the fixed rate is Rs 3. Needless to say this is seldom seen in Mumbai. Everyone else falls under the residential category. If your consumption is under 100 units, the fixed charge is Rs 30 per month; if its between 101 to 500 units, then the fixed charge is Rs 50 per month and if your consumption is above 500 units then your fixed charge is Rs 100 per month. Therefore, the fixed charge varies as per your consumption from month to month! There is one further complication – if you have a three phase meter then your fixed charge is fixed at Rs 100 per month irrespective of your consumption.

The second item is the energy charge. This is the actual amount of money payable for electricity consumption.This is also the biggest part of your bill. This can be calculated using the slabwise rates given further below in the bill (see image on right). Typically this is stated as paise per units. The slabwise calculation means that the first 100 units are calculated at the rate of slab 1 (lowest rate), the next 200 units are calculated at the rate of slab 2 (higher rate), the next 200 units are calculated at the rate of slab 3 (still higher rate) and any units after the first 500 units are calculated at the highest rate. These rates are fixed once a year through an approval process with MERC (the electricity regulator for Maharashtra) and do not change in the course of a year. Usually this change happens in June of every year. electricity kwh cost uk The third part of your bill is Fuel Adjustment Charge (FAC). This varies from month to month and is the reason why your bill may go up even if your consumption has not. This item is also stated in paise per unit and can be seen in the image above. This charge reflects the underlying reality of wholesale electricity market. The cost of electricity generation varies every month with variation in the cost of fuel – coal and oil. Furthermore, a retail distributor like Reliance buys electricity from several sources which vary in cost from time to time. This mix of sources also affects the cost in hands of Reliance. Reliance passes this extra cost to the customers after approval from MERC (electricity regulator for Maharashtra). This is usually an estimate and therefore an adjustment is made next month in case of over charge. Thus, FAC can even be negative! The next two items are what the Govt of Maharashtra charges as taxes. power outage houston report The first one is a duty of 15% on the total of fixed charge, energy charge and fuel adjustment charge. The second one is a tax of 15 paise per unit consumed. All these added together make your current month’s bill. circle k gas station locations From this, Reliance deducts interest on your security deposit, prompt payment discount and discount for e-payment. It also adds delayed payment charge for last month and interest on arrears (if any). Sometimes, you may have discount for e-payment and also a delayed payment charge. This happens if you used your bank’s bill payment services/internet payment (ECS) on the last date of the bill or a day before the last date. This is because ECS takes 3 working days to reach Reliance. Thus, both heads gets triggered. Lastly, there is adjustment of last month’s outstanding amount which is essentially due to the rounding up that Reliance does. Its usually under Rs 5 unless last bill hasn’t been paid. All these put together make up your electricity bill at Reliance Energy. Do post your questions on your Reliance bill and we would be happy to answer them here.

Aditya has a Post Graduate Diploma in Finance and strategy from IIM Bangalore. He comes with rich experience in the field of strategic investments, venture capital and technology. During his nearly 7 year stint at TCS, Aditya gained deep experience in start ups and exploring new technologies and business models. As director innovation partner Network, Aditya identified start ups with innovative technologies and incubated them to maturity. Aditya’s deep understanding of upcoming ubiqutous computing trends helped TCS make strategic investment decisions in this area. As head of sales West India, Aditya spear headed new collaborations for TCS in the banking and financial services space. With a zest for start ups and new innovations, Aditya co-founded Headstart Netwrok Foundation in the year 2007. This is a non profit organisation that promotes entrepreneurship. Aditya founded SwitchME in the year 2012. grade 6 electricity project ideas SwitchME was a pioneer in the field of specialised home loan advisory, conveniently based on an online platform. Today SwitchME has helped over 1000 customers with new home loans and balance transfers right at their doorsteps.