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  • Category: Miscellaneous

    Division of Electricity charges between tenant and owner in winter when bill is based on MMC

    Have a query about the sharing of electricity bill between the house owner and tenant? Searching for details of how to collect the portion of electricity bill from the tenant? Here, find advice from experts for all your queries.

    MMC (means minimum monthly charges). I need to clarify or seek your opinion on a issue:
    In summers we divide the bill as per meter reading of tenant multiplied by rate per unit charged in actual electricity bill e.g actual Bill is 7000 for 496 units so rate =7000÷496=14.112.

    Now the tenant consumes 240 units, so we calculate his charges as 240×14.112=3386 approx.

    Confusion arises in winter when consumption of units is very low on each floor of the building because no AC or fans are used but only few lights are used in the evening (in my business office/showroom).
    So we get 3200 approx fixed charge even if we consume low electricity.
    In that case what I prefer to do is divide the electricity bill of 3200 by 4 floors which comes out to be 800 for each floor. I have 3 floors and tenant has 1 floor.
    So the tenant pays 800 fix if the bill comes out as minimum bill label.
    Is that perfectly ok? I feel it is because neither I nor my tenant uses much of the gadgets. Just due to MMC format we get bill near about 3200 approx.

    So equitably I divide into 4 parts equally as 800 each. My tenant says that this method is vague.
    He wants to pay on single applicable way i.e.just by reading units consumed from submerged and multiplying it with average rate per unit.
    However the issue is for the owner. Tenant can pay as usual according to submerged reading but in that case owner has to pay more. This is because he has to bear the remaining difference of charges due to MMC format.
    Can you advice?
  • Answers

    1 Answers found.
  • Gadgets like laptop, desktop, LED bulb, phone chargers don't cost much money. But the water heater, fridge, fan, TV are going to cost a lot of Units. So you can see that is going to increase the amount of bill that comes out. I think on that basis it'd be reasonable to make use of the splitting of bill. Some of the owners also separate the meter and this helps in paying the bill individually. That is much more effective. You can do such type of the fixing with the electricity department and they can do the split on that properly. You should go this route as it;s much reasonable and also long term effective for splitting of bill.

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