Arrear Component

Dear Sir,  What is Arrear Component charge in Bill..

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nishant · 19-Dec-19

Administrator ·  183

Net payable amount of an electricity bill is a summation of

  • Previous Dues, called Arrear
  • Current Month's Bill
  • Late Payment Surcharge on Arrear, called Current component of late payment surcharge
Further, Previous Dues (Arrear) will be having two-component
  • Principal Amount of electricity bill
  • Surcharge (Interest) amount, called Arrear component of late payment surcharge

Let's try to understand it with a typical example.

arrear-component.jpg

Suppose a consumer is having
1. Fixed monthly bill of amount Rs. 1000/-
2. The late payment surcharge rate is 2%
and he didn't pay the electricity bill for 7 months.

His net payable amount will be Rs. 7420/-

  • Previous Dues = 6300
    1. Pricipal Arrear = 6000
    2. Arrear component of LPSC = 300
  • Current Month's Bill = 1120
    1. Current Principal amount = 1000
    2. Current component of LPSC = 120

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