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Electricity Bill: How is it Calculated?

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Electricity is a significant household expense. Understanding the calculation process is a vital tool for financial planning and savings. Solar PPM provides this simplified guide to help you manage your household budget more effectively.

The Basic Calculation Method

The total electricity cost is determined by multiplying the number of units consumed by the applicable rate per unit.

Formula: Total Units Used × Rate per Unit = Total Cost

Example: If you consume 500 units at a rate of 3.99 THB per unit, your estimated cost would be 1,995 THB.

How to Read Your Electricity Bill

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Beyond the basic calculation of units and rates, it is essential to understand the specific details listed on your bill to know exactly what you are paying for each month. Key components include:

  1. Electricity User Category Users are classified into various categories such as Small, Medium, or Large Businesses, Non-Profit Organizations, and Residential. For Residential (Category 1), there are further sub-classifications:
  • 1.1: Households consuming no more than 150 units per month.
  • 1.2: Households consuming more than 150 units per month. Note: Different rates apply to each category.
  1. Number of Units Consumed This represents the actual amount of electricity used by appliances and devices in your home, such as refrigerators and air conditioners.
  2. Meter Reading Date The specific date on which the utility official records your actual electricity consumption. This date may vary depending on your location.
  3. Energy Charge The fundamental cost associated with the generation of electricity.
  4. Fuel Adjustment Charge (Ft) The Ft represents the cost of fuels used in production, such as diesel and natural gas. This rate fluctuates according to global market prices.
  5. Service Fee The operational and administrative fee charged by the electricity authority.
  6. Value Added Tax (VAT) 7% The standard indirect tax required by the Thai government on goods and services.
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