How to Reduce Electricity Bill in India – Best Ways

  • Post author:
  • Post last modified:

The basic items for survival are a house, water and food. This is still true, but there is an addition to this list – ELECTRICITY.

How to Reduce Electricity Bill in India 2023 with the best ways. Here in this article, we are going to discuss in detail the main ways that will definitely help you reduce your electricity bill.

How to Reduce Electricity Bill in India 2022

Nowadays, with the growing development of technology, automation is a challenge of the times. This has led to the use of more and more automated tools for daily operations, such as vacuum cleaners, replacing traditional cleaning methods.

Yes, they are efficient, but they require electricity to operate, and as people’s needs grow, so does the demand for them. This widened the gap between supply and demand and caused prices and taxes to rise.

The cost of an electricity bill is a way to analyze and understand the parameter by which an electricity bill is generated for any customer.

The basic and only unit of measure for consumption is the kilowatt-hour. This is not rocket science, but a simple statement that “when you consume 1 kilowatt of electricity for one hour, you are said to be consuming one unit or 1 kWh of electricity.”

For example, if an air conditioner has a power of 1000 W and is used for an hour, then it consumes 1 kWh of electricity or one unit. Based on the total number of units consumed by all appliances, the invoice value is calculated.

Let’s understand how the bill is actually calculated using the electricity bill calculator. The calculator stores all the plates of current charges, and when the consumed number of units is fed into it, it calculates the cost of the account.

Get 100% Back Up to Rs.50/- On Electricity Bill Payment {Also Get Free Gift Cards} Collect Now!

Example to Reduce Electricity Bill Payment in India 2023

Let us see and understand it through an example:

House A consumed 300 units of electricity in the month of January.

House B consumed 500 units of electricity in the month of January.


House A falls in the slab of 200-400 units per month whose charges are Rs 4.80 per unit.

House B falls under the slab of more than 400units electricity whose charges are Rs 5.70 per unit.

We get the total unit’s cost by multiplying the number of units and the cost per unit.


House A has to pay Rs 1440 as the unit cost.

House B has to pay Rs 2850 as the unit cost.

The set of rules and regulations governing the management of electricity is defined in the Electricity Act 2003. Prior to the enactment of this Act, all regulation was carried out under the Electricity Act of India 1910 and the Electricity (Supply) Act 1948.

In general, the responsibility for managing the supply and distribution of electricity fell on the State Electricity Council. The first guide to this law was written by Mr. Raj Singh Niranjan titled “Guide to Electricity Laws in India”.

The law completely eliminates electricity generation (with the exception of hydropower projects over a certain size). The highlight of the act was the focus on the use of renewable and non-traditional energy sources, since the act was aimed at making energy production environmentally friendly.

Up to 10% of all electricity supplied in the country should be in this reliable form. The law also establishes licensing schemes for distribution in urban areas and encourages accessibility in rural areas.

But the limitation of this regime is the “indefinite rural borders”, due to which one-third of the distribution has not yet been released, except for the 16 states that have defined it.

Get 100% Back Up to Rs.50/- On Electricity Bill Payment {Also Get Free Gift Cards} Collect Now!

How to Reduce Electricity Bill in India?

Here are some simple, either free or low cost tips on how to conserve electricity and energy. These methods will show you how to save electricity, will help you conserve energy and save money on electricity bills.

While the exact amount of savings on your electricity bill are hard to estimate and include many factors, you can reduce your electricity bill by 20-40%.

What is frightening is that several national research firms, including Global Insight, expect utility rates to rise by almost 6% in 2009, and prices could increase by up to 69% by 2015. Read more.

Turn off your computer, or set it to standby, to save up to $75 per year on electricity. More.

1. Smart electric meters

According to studies, the Smart Meter has reduced electricity bills by over 10 percent and is one of the most effective ways to conserve electricity and energy.

2. Water Heaters

This is the second highest energy using item in your home and conserving here can make a difference. One way how to conserve electricity, just insulate the water heater and any exposed hot water pipes.

3. Air Conditioners Units

Save up to 2% in electricity costs by adjusting your temperature just 1 degree. You can enjoy the comfort of your air conditioning unit, pay less, and conserve if you do the following.

4. Lighting savings

An effective way how to save electricity is by replacing incandescent bulbs with screw-in fluorescent bulbs, which will use 75 percent less electricity and last at least 8 times longer. Your lighting accounts for around 15% of your home’s electric use and it is a great way to conserve electricity.

5. Freezers and Refrigerators suggestions

Something as simple as checking your door seals to ensure there are no leaks will help you conserve energy.

Conserve energy with your Washing Machine

Since almost 90% of the energy your washing machine uses goes to heating water, there are methods to conserve electricity and save money with this appliance.

6. Weatherization Assistance

This program enables families to permanently conserve electricity and reduce their energy bills by making their apartments and homes more energy efficient.

Get 100% Back Up to Rs.50/- On Electricity Bill Payment {Also Get Free Gift Cards} Collect Now!

Online Electricity Bill Payment

An introduction to online electricity bill payment is complete without a brief description of the implementation of electronic payment services in the Indian financial system. We are all quite accustomed to financial transactions in our daily lives.

Relationships differ between businesses and consumers or between business entities themselves. Payment variances affect a country’s gross domestic product, so they should always be directed towards a safe, secure, efficient and authorized window. The payment system and monetary value are a reflection of the prevailing economic concern.

The Reserve Bank of India aims to ensure a smooth payment chain, more precisely, the system of flow and receipt of payments is administered by the Board of Regulatory System of Payments and Settlements within the Territorial Boundaries of India.

Since financial transactions are of paramount importance as they are connected to the financial system, therefore, new ways are being introduced to make the system more free and clean from complexities and hassles, but at the same time secure. There have been changes in payment methods, from paper to electronic support.

Everyone is advised to use electronic mode because it is safer and more efficient. The traditional ways of paying bills were limited negotiable instruments. Cash was the most widely used payment method. But having large amounts of cash created security problems, so payments for large amounts were made using checks.

Thus, the payment of bills was mainly carried out by checks. Due to recent developments in the banking sector and the provision of many efficient services, the Reserve Bank of India has encouraged and introduced alternative payment methods.

The banking sector has been revolutionized with electronic support services that provide fast and secure transfer of funds. Although paper money transfers are quite prevalent so far, with the introduction of electronic means, the banking sector has witnessed tremendous growth.

The RBI has introduced new rules to encourage e-services. Now banks are specifically ordered to transfer large amounts of transactions only through RTGS (i.e.

Real Time Gross Settlement) and individuals are encouraged to switch to OIL (National Electronic Funds Transfer). Plastic debt and money are increasingly replacing the mainstream status of paper money, which sowed the seeds of the Indian payment system, or rather, has undergone dramatic changes.

Get 100% Back Up to Rs.50/- On Electricity Bill Payment {Also Get Free Gift Cards} Collect Now!

Electronic Specific Modes of Electricity Bill Payment

  • Electronic Clearing Services (ECS Credit)

Also widely known as ‘Credit-push facility’ or ‘one-to-many facility’, they are generally concerned with bulk monetary transfers. The payment can be directly credited to the recipients’ accounts and the payer institution’s account being automatically debited. They are generally used for payment of salary, commission or dividends.

  • Electronic Clearing services (ECS Debit)

They are generally for receipts from small individual transfers of small monetary worth. It eliminates the threats of accumulation of paper money summing to huge worth, instead the account of the entity is automatically debited, and this method is suitable for electricity bill receipts, or online credit and insurance payments.

  • National Electronic Funds Transfer (NEFT)

They specifically served to the bank customers to ease transactions on one-to-one basis. They are generally, done in the form of electronic messages, and to make the transactions running smooth, maximum of six transactions are taken each day.

Get 100% Back Up to Rs.50/- On Electricity Bill Payment {Also Get Free Gift Cards} Collect Now!

MD Proelectra Electricity Power Saver – Best Electricity Saver Device in India 2023

  • Avoid the electronic waste.
  • Protects the equipment.
  • Prevents current protrude waves.
  • Improves your home appliances life.