Are We Paying Our Electricity Bills Correctly As Business Owners?

Electricity can be deemed as the architect of the modern world. No technological advancements that humankind brags about would have been possible without electricity. Its presence is well established in all sectors of our daily lives whether it is our car, kitchen, smartphone, or office. 

Are We Paying Our Electricity Bills Correctly As Business Owners

However, this use of electricity comes at a monetary cost, which is generated periodically and paid by the consumers.

The rationale behind the cost

We are all aware of the manifestations of the electric current and are vaguely informed about its generation procedure. It is common knowledge that electricity is generated by rotating turbines with the aid of the following means:

  • Thermal (Natural Gas/Coal/Petroleum)
  • Solar
  • Wind (Offshore and Onshore)
  • Hydropower
  • Nuclear
  • Other sources like tidal, bio-energy

To build the infrastructure of producing electricity and maintaining them the end-consumers must pay for the use. Besides, several other factors like storage, transportation, taxes, etc. also have an effect on the bill amount for electricity consumption.

Types of electricity connection

The electric connection to any establishment is defined by the kind of appliances that the particular establishment would use. Based on usage, the connection and the subsequent bill are broadly divided into two categories:

  • Retail: These are low wattage connections ideal for residential usage.
  • Commercial: Connections are mainly used in high wattage for those establishments that operate heavy pieces of machinery or appliances.

The billing system of electric connections depends on the local laws and varies from one country to another. The tariffs levied are based on the local laws and the company that provides the services. In many countries, the electricity service is provided by government-run institutions wherein others there are private limited companies that provide these services. 

The bill is usually based on the units one has consumed during the billing cycle. The units’ usage is recorded in a meter, which is installed in the establishment by the electric service provider.

Understanding the bill and paying the correct tariffs

In continuation with the above discussion, an electric bill is generated based on the unit usage. As end-users, we must understand the tariff levied on every penny so that correct bill payment is ensured. To make sure that unit usage is correctly recorded the electric meter should be updated at regular intervals. 

While residential usage tracking does not need heavy monitoring commercial usage does to a huge extent.

Since the commercial usage is more, therefore minute tracker is required. This practice verifies the correct billing on both the fronts, the electricity service provider and the end-user, and gives less room for mistakes. Multiple technologies and innovations like Half hourly meters are present to guarantee fair and square billing.


While fair billing is an aspect of electrical usage, another side that should be kept in mind is responsible usage. Electricity is one of the many valuable resources that people often misuse. Hence, one should be mindful about their use because not only it incurs huge bills but also harms the environment.

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