How Progressive Electricity Slab Charging Works
In most regions, electric companies charge using tiered slabs. Lower consumption ranges cost less per unit, encouraging resource savings.
The standard residential slabs used in this engine are:
Slab 2: 101 - 300 kWh • ?6.50 / unit (or $0.16)
Slab 3: 301 - 500 kWh • ?8.00 / unit (or $0.22)
Slab 4: Above 500 kWh • ?10.00 / unit (or $0.28)
If you consume 350 units, your base charge is computed as:
Base Cost = (100 × 4.5) + (200 × 6.5) + (50 × 8) = ?2,150
Finally, we add fixed demand charges and multiply by the state duty tax percentage to resolve the monthly payment amount.
Electricity Billing FAQs
kW (Kilowatt) is a measure of power, representing the instant rate of energy consumption. kWh (Kilowatt-Hour) is a measure of total energy volume used. If you run a 1,000-Watt (1 kW) heater for exactly one hour, you consume exactly 1 kWh of electricity (equivalent to 1 unit on your bill).
Electricity duty is a government consumption tax added by state authorities. It fluctuates depending on whether the building is classified under domestic or commercial profiles, averaging 5% to 15% globally.
Smart meters themselves do not reduce energy usage, but they record Time-of-Day (TOD) pricing splits. If you run washing machines and other high-draw appliances during cheaper off-peak night slabs, you can lower average billing charges significantly.