Author Topic: Trying to understand power company's 'fixed charges'  (Read 622 times)

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Offline RajTopic starter

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Trying to understand power company's 'fixed charges'
« on: February 07, 2021, 10:39:12 am »
I was never interested in power company's fixed charges, until I saw my friend's electricity bill.
He's been paying fixed charges, about 6 times more than what I pay.
His electrical system is capable of 10Kw, while mine is 2Kw capable.

I don't understand the reasoning and units that are using to charge us fixed interest.
Can someone please explain what's going on here?

Attached, screenshot of offending portion of the bills

I think, load is max kW, the meter can supply, and bill period is no of days between bills but I can't understand the rate/ kW/ month thing.
kW/month sounds like change in electricity consumption which is redicolously absurd.
« Last Edit: February 07, 2021, 10:50:46 am by Raj »
 

Offline tom66

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Re: Trying to understand power company's 'fixed charges'
« Reply #1 on: February 07, 2021, 11:21:41 am »
At a guess, rate/kW/month is the cost the energy supplier charges (in INR?) per kW of supply capacity, per month you have that supplied.

So since your friend has an 8.79kW supply,  and the rate cost is 75 INR per kW per month,  they pay a monthly cost of 659.25 INR.  But, they are billed only every 60 days, so you pay approximately twice that (they approximate the year as having 366 days) but once every 60 days.  That's what the (a*b*c*12)/366 is working out.

It looks like the rate per kW increases with higher supply, probably because it costs incrementally more to supply a bigger supply line, and it's more likely (especially in India) that will be used continuously for things like air conditioning which requires higher downstream rating costing the power company more money.
 
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Offline RajTopic starter

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Re: Trying to understand power company's 'fixed charges'
« Reply #2 on: February 07, 2021, 11:27:03 am »
Makes sense now. Thanks.
 


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