What is Fixed Charges in Electricity Bill?

I never noticed what is fixed charge in electricity bill until I heard my younger brother talking about it with my father. I did my research and found out that

What are the Fixed Charges of Electricity Bill?

In order to provide members with dependable and safe electric service, electricity departments invest in labour and equipment such as poles, cables, and transformers. The energy charge is used to recover the energy used, whereas the fixed charge covers the basic cost of the infrastructure and electric service that the customer uses. 

In other words, the energy charge is like an indirect rent payment for using the electrical company's poles and lines.

What are the Fixed Charges in Electricity Bill Formula?

• Fixed charge= Rate * Sanctioned Load

The fixed charge is deducted based on the consumer's connection load and the meter's demand. 

Suppose the sanctioned load for the domestic connection is 2 KW and the rate is Rs. 90. In that case,

Fixed Charge = 2 KW * 90 (per KW) = Rs. 180 is the fixed charge.

I hope this helps you.

I have a property in Delhi and it comes under TPDDL. I didn’t really bother at first about the fixed charges and other charges but your question got me thinking and I wanted to know what is fixed charges in electricity bill. These charges are also known as customer charges if I am not wrong. So I did a little research and found out about it. I am going to tell you about it here in detail so stick around.

Fixed charges are the charges which are fixed for a billing period as per the load, applicable rate and slab. These charges do not change upon electricity use and remains unchanged in the electricity bill of a customer.

The calculation of fixed charges for agricultural, industrial and non domestic areas for a sanctioned load of up to 10kW is:

Fixed Charge = Rate x Slab x Sanctioned Load

While the domestic rate category for fixed charges in electricity bill is as follows:

These are the charges according to DERC as given on Tata Power Delhi Distribution Limited. You can check out what is the fixed charge in electricity bill for your operator on their official website. 

I hope this clears up your doubts about what is fixed charges in electricity bill.