Minimum charges is the charge in accordance with the tariff in force from time to time and come into effect only when the sum of fixed charges and energy charges are less than a certain prescribed amount

Minimum Charges = Prescribed amount - (Energy Charges + Fixed Charges)

where, prescribed amount is decided by UPERC. It is applicable on few selected categories. Currently, it is applicable on LMV2, LMV5 and LMV9.

For Example: Prescribed amount for LMV2 consumer is Rs. 575/KW/Month during summer. Suppose consumption of a 2 KW consumer is only 50 unit.
      Energy Charges = 350
      Fixed Charges = 600
      Prescribed amount = 575x2 = 1150
since, this prescribed amount is higher than sum of EC and FC, Minimum charge comes in picture and will be 1150 - (350 +600) = 200