Electricity & Utility Billing6 min readUpdated 2026-10-12

Sub-Meter Electricity Bill Calculation Formula for PG & Flat Tenants in India

Electricity disputes are the #1 reason for friction between Indian landlords and tenants during summer months. Use this transparent sub-meter formula to bill single rooms, shared PG beds, and common area loads with zero confusion.

Vikramaditya Rao

Head of Property Operations, RentKhata

Automate Utility & Sub-Meter Billing

1. The Standard Sub-Meter Reading Formula for Rental Rooms

Whether your property is billed under BESCOM (Bangalore), MSEDCL (Maharashtra), TSSPDCL (Hyderabad), or BSES (Delhi), calculating a room's dedicated electricity consumption requires recording the kWh reading on the 1st of each month.

Always take a timestamped photo of the digital sub-meter display so tenants can verify the opening and closing units directly on their monthly invoice.

  • Units Consumed (kWh) = Closing Meter Reading (Current Month) − Opening Meter Reading (Previous Month).
  • Room Electricity Charge = Units Consumed × Agreed Per-Unit Tariff (e.g., ₹9 to ₹12/unit based on commercial/domestic slab + fixed load charges).
  • Per-Tenant Share (for Shared PG Rooms) = Room Electricity Charge ÷ Number of Active Occupied Beds in that Room.
Worked Example: 3-Sharing AC Room in Pune

Previous Reading: 1,420 kWh | Current Reading: 1,630 kWh | Total Consumed: 210 Units. At ₹11/unit, Total Room Bill = ₹2,310. Split equally across 3 occupied beds = ₹770 per resident added automatically to their monthly rent invoice.

2. Handling Mid-Month Move-Ins & Common Area Load

What happens when a new resident checks into Bed B on the 16th of the month? Charging them an equal 30-day split triggers immediate conflict. The fair standard is bed-day apportionment: divide total room units by total active occupant-days in that billing cycle.

For common utilities—corridor lights, RO water purifiers, washing machines, and lift backup—either embed a fixed monthly utility maintenance fee (₹300–₹500/bed) or split the common sub-meter across all active residents.

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Got Questions?

Article FAQs

Common questions about sub meter electricity bill calculation for tenants.

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Can landlords charge a flat per-unit rate for sub-meters in India?

Yes, provided the per-unit rate is explicitly stated in the Leave & License or PG Admission Agreement signed before move-in and reflects the effective tariff including fixed demand charges and DG backup costs.

How do I prevent disputes over opening meter readings?

Record the exact sub-meter reading on the digital check-in form on Day 1 and attach meter photos to each monthly RentKhata invoice.

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