GUIDE FOR LANDLORDS
How to calculate a tenant's electricity bill from a sub-meter
When several tenants share one electricity connection, each flat or shop usually has its own sub-meter. The main bill comes to you; you charge each tenant for what their sub-meter shows.
Step 1: units used
Read the sub-meter at the start and end of the month:
Units used = this month's reading − last month's reading
If last month ended at 4,215 and today reads 4,395, the tenant used 180 units.
Step 2: the rate per unit
Agree on the rate in the rent agreement. Landlords usually use one of these:
- A fixed rate, for example ₹8 a unit. Simple, and easy for the tenant to check.
- The average rate from the main bill: the total bill divided by the total units on the main meter. Fair when slab rates make the cost per unit change from month to month.
Using the example: 180 units × ₹8 = ₹1,440.
Step 3: fixed charges
Electricity bills also have fixed or demand charges that do not depend on units. Either fold them into the rate per unit, or split them equally between the flats on the connection. Write down which, so it is the same every month.
Splitting a common bill between flats
For a bill with no sub-meters, such as stairs, corridor lights or a water pump, split the amount equally or by an agreed share:
| Amount | |
|---|---|
| Common electricity bill | ₹4,800 |
| Flats sharing it | 4 |
| Each flat pays | ₹1,200 |
Keeping it right every month
- Note the reading on the same date each month.
- Carry last month's closing reading forward as this month's opening reading, so no units are counted twice or missed.
- Keep a photo of the meter when a tenant moves in and out.
How Tenowa handles it
Enter this month's reading and Tenowa works out units used times the rate per unit, and adds it to that month's rent. Last month's closing reading and rate carry forward, so each month you type one number. Water and gas work the same way; maintenance and parking can be a flat amount.
Common questions
What rate should I charge per unit?
Whatever the agreement says. If it says nothing, the average rate from the main bill is the easiest to justify.
Can I charge more than the electricity board's rate?
Charging a reasonable rate that covers fixed charges is common, but a rate well above the board's tariff invites disputes. Put the rate in the agreement.
What if the sub-meter stops working?
Agree on a fallback in writing, such as the average of the last three months, until the meter is fixed.