What is connected load and how does it affect my electricity bill?

Connected load is the total wattage of all electrical appliances that can potentially be connected at your premises, measured in kW. It affects your bill through fixed charges (calculated per kW in some states like Delhi) and may determine your consumer category. A typical 2BHK has 2-3 kW, while a 3BHK with AC could be 3-5 kW.

How do I read my electricity bill in India?

An Indian electricity bill contains: consumer details and sanctioned load, meter readings (current minus previous = consumption in kWh units), slab-wise energy charges, fixed/demand charges, electricity duty (5-10% state levy), fuel surcharge adjustment, and total payable. Billing is monthly in most states except Tamil Nadu which bills bimonthly.

Electricity Bill Calculator India — State-Wise Tariffs 2025-26

Q: Why is electricity not under GST in India?

Electricity is listed under Schedule III of the CGST Act, 2017 and is classified as neither a good nor a service for GST purposes. States rely heavily on electricity duty as a revenue source and bringing it under GST would mean sharing this revenue with the centre. Instead, states levy electricity duty (typically 5-10%) which serves a similar purpose to a consumption tax.

Q: How do state electricity subsidies work in India?

Several state governments offer electricity subsidies for domestic consumers. Delhi provides free electricity for consumption up to 200 units/month. Punjab offers 300 units free. Tamil Nadu provides free electricity for the first 100 bimonthly units. If your consumption exceeds the free unit threshold, the subsidy usually does not apply at all — you pay the full bill.

Q: Which Indian state has the cheapest electricity for homes?

Delhi has the cheapest effective rate due to the free electricity scheme (0-200 units free). For consumption above 200 units, Gujarat (UGVCL) has the lowest per-unit rates among major states with a maximum of Rs 4.80/unit. Maharashtra (MSEDCL) has the highest rates exceeding Rs 14/unit above 500 units. Tamil Nadu offers free electricity for the first 100 bimonthly units.

Calculate your monthly electricity bill with slab-wise tariff rates for Delhi (BSES), Maharashtra (MSEDCL), Karnataka (BESCOM), Tamil Nadu (TNEB), Uttar Pradesh (UPPCL), and Gujarat (UGVCL). Includes fixed charges, electricity duty, and Delhi free electricity subsidy. GST is not applicable on electricity.

Calculate your monthly electricity bill based on state-wise slab tariffs

State / Discom

Select your state for applicable domestic tariff rates

Units consumed (kWh)

units

Monthly units from your electricity meter or last bill

Connected load

Your sanctioned connected load (shown on your electricity bill)

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How to Use This Calculator

Monthly Bill tab

Select your state/discom (Delhi, Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, or Gujarat), enter your units consumed from your electricity meter, and your connected load in kW (found on your bill). The calculator applies the correct slab-based tariff for your state, adds fixed charges and electricity duty, and shows you a detailed slab-wise breakdown. For Delhi, the government subsidy for consumption up to 200 units is automatically applied.

Appliance Cost tab

Select your state and check the appliances you use at home along with daily usage hours. The calculator computes per-appliance monthly units and cost at your state's tariff rate. This helps you identify which appliances consume the most electricity and where you can save by reducing usage or upgrading to energy-efficient models.

Bill Reduction tab

Enter your current monthly bill and select applicable savings scenarios: upgrading to a 5-star AC (30% energy saving), switching to LED bulbs (60% energy saving), or installing a 3kW rooftop solar system (~360 units/month). The calculator shows your potential monthly and annual savings along with payback period for solar investment.

Share your result

All inputs are encoded in the URL. Click Share to send your exact calculation to family members or bookmark it for comparison when your next bill arrives.

How Electricity Bills Are Calculated in India

Slab-Based Pricing (Telescopic Tariff):
Indian electricity tariffs use a slab system where the per-unit rate increases as your consumption rises. Each slab of units is charged at a different rate.

Energy Charge:
Energy Charge = Σ (Units in Slab_i × Rate_i)

Example: In Delhi, 350 units:
First 200 units × ₹3.00 = ₹600
Next 150 units (201-350) × ₹4.50 = ₹675
Energy Charge = ₹1,275

Fixed Charge:
A flat monthly charge regardless of consumption. In some states (like Delhi), it is per kW of connected load.
Fixed Charge = ₹40/kW × Connected Load (Delhi)
Fixed Charge = ₹50 flat (Maharashtra, UP)

Electricity Duty:
Duty = (Energy Charge + Fixed Charge) × Duty Rate
Duty rates vary: 5% (Delhi, TN, UP, Gujarat), 6% (Karnataka), 10% (Maharashtra)

Total Bill:
Total = Energy Charge + Fixed Charge + Electricity Duty − Subsidy (if applicable)

Note: GST is NOT applicable on electricity supply in India. Electricity is listed under Schedule III of the CGST Act and is neither a good nor a service under GST.

Example

The Sharma family in Delhi, 350 units/month, 3 kW connected load

The Sharmas live in a 3BHK apartment in Delhi with a 1.5-ton AC, fridge, washing machine, and usual household appliances. Their monthly consumption is 350 units. Let us calculate their bill under Delhi (BSES) domestic tariff.

Step 1: Slab-wise energy charge

0-200 units @ ₹3.00/unit200 × ₹3.00 = ₹600

201-350 units @ ₹4.50/unit150 × ₹4.50 = ₹675

Total energy charge₹1,275

Step 2: Fixed charge

Fixed charge (₹40/kW × 3 kW)₹120

Step 3: Electricity duty

Subtotal (₹1,275 + ₹120)₹1,395

Electricity duty @ 5%₹70

Step 4: Subsidy check

Delhi free electricity schemeNot applicable (consumption > 200 units)

Final bill

Total monthly bill₹1,465

Effective rate per unit₹4.19/unit

Annual electricity cost₹17,580

If the Sharmas reduced their consumption to 200 units (e.g. by using the AC less), their entire bill would be waived under the Delhi government free electricity scheme, saving them ₹1,465/month or ₹17,580/year.

FAQ

Why is electricity not under GST in India? ▼

Electricity is listed under Schedule III of the CGST Act, 2017 and is classified as neither a good nor a service for GST purposes. The government has kept electricity outside GST because: (1) states rely heavily on electricity duty as a revenue source, and bringing it under GST would mean sharing this revenue with the centre; (2) the input tax credit chain for electricity is complex; (3) political sensitivity around increasing electricity costs for consumers. Instead, states levy electricity duty (typically 5-10%) which serves a similar purpose to a consumption tax. There have been discussions about eventually bringing electricity under GST at 5%, but no decision has been made as of 2025-26.

How do state electricity subsidies work in India? ▼

Several state governments offer electricity subsidies for domestic consumers. The most notable is Delhi's free electricity scheme, where households consuming up to 200 units/month get their entire bill waived (the state government pays the discom). Punjab offers 300 units free to domestic consumers. Tamil Nadu provides free electricity for the first 100 bimonthly units. These subsidies are funded from the state budget, not from cross-subsidisation between consumer categories. To avail the subsidy, consumers typically need to apply through the discom's portal or app. Important: if your consumption exceeds the free unit threshold (e.g. 201 units in Delhi), the subsidy usually does not apply at all -- you pay the full bill, not just for the excess units.

What is connected load and how does it affect my bill? ▼

Connected load is the total wattage of all electrical appliances and equipment that can potentially be connected to the electricity supply at your premises. It is measured in kW (kilowatts) and is sanctioned by the discom when you apply for a new connection. For example, a typical 2BHK might have 2-3 kW connected load, while a 3BHK with AC could be 3-5 kW. Connected load affects your bill in two ways: (1) Fixed charge in some states (like Delhi) is calculated as a per-kW amount times your connected load; (2) Your consumer category (LT-1, LT-2, etc.) may depend on your connected load, with higher loads attracting higher tariff rates. You can find your sanctioned connected load on your electricity bill, usually near the top.

How to read my electricity bill in India? ▼

An Indian electricity bill typically contains these key components: (1) Consumer details -- name, account number, sanctioned load, consumer category (domestic/commercial/industrial); (2) Meter reading -- current and previous readings, with the difference being your consumption in units (kWh); (3) Energy charges -- the slab-wise calculation of your consumption; (4) Fixed/demand charges -- a flat charge or per-kW charge regardless of consumption; (5) Electricity duty -- a state-levied percentage on the subtotal; (6) Other charges -- meter rent, fuel surcharge adjustment (FAC/FPPCA), power purchase adjustment; (7) Arrears (if any) and total payable. The billing cycle is usually monthly (except Tamil Nadu which bills bimonthly). Due dates are typically 15-21 days from bill generation.

Which Indian state has the cheapest electricity? ▼

For domestic consumers, the cheapest effective electricity rates in India are in states with high subsidies. Delhi has the cheapest effective rate because of the free electricity scheme (0-200 units completely free). For consumption above 200 units, Gujarat (UGVCL) tends to have the lowest per-unit rates among major states, with a maximum slab rate of ₹4.80/unit compared to ₹14.41/unit in Maharashtra. Tamil Nadu offers free electricity for the first 100 bimonthly units. Among states without subsidies, Gujarat and Uttar Pradesh are generally cheaper than Maharashtra and Karnataka. Maharashtra (MSEDCL) has the highest domestic tariff rates among major states, with rates exceeding ₹14/unit for consumption above 500 units. However, actual bills depend on consumption level, connected load, and applicable surcharges.

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