Got a inflated Electricity Bill? Should you pay in installments or pay together? Find out now.

Recently, there have been thousands of complaints from consumers on social media about the increased electricity bills for the month of June. Complaints are being filed against the electricity distribution companies of Mumbai, Delhi, Chennai etc.

You should take immediate steps to pay higher electricity usage charges.

Why electricity bills have been increased for June?

Due to the COVID-19 epidemic and nationwide lockout from March 25, physical meter reading was discontinued and gradually resumed from June. As per the instructions of the Maharashtra Electricity Regulatory Commission (MERC), electricity distribution companies in Mumbai (Adani Bijli, Tata Power, etc.) bill customers for March, April and May on the average consumption of the last three months – December, January and January. Had given. February. Since they were winter months, the average bill was also lower during the lockdown months.

MERC allows bill payments in EMIs. Should I opt for this payment plan?

Facing backlash due to electricity bills handed over to customers from 1 July, MERC has allowed power distribution companies to provide a three-month EMI facility using credit cards to pay electricity bills. If you choose to pay the electricity bill for EMI, the electricity supply for your home will not be cut off. Other states may also allow payment in installments. But is it wise to have an option?

Harshil Mojaria, a certified financial planner at ValueCurve Financial Solutions, says, “You should not opt ​​for an EMI scheme to pay electricity bills, because using this facility you will end up paying more. Banks charge an interest rate of 13-15 percent for three-month installments. Additionally, you will have to pay a facility fee of Rs 99 and Goods and Services Tax (GST) on the interest component of EMI.

Should I pay the full bill and offer a two percent discount?

If your cash flow and savings allow you to pay your bill as a lump sum, you should definitely do so and get a two percent discount given by the Maharashtra State Electricity Distribution Company. In addition, you should make a complaint bill with your electricity distribution company by email or call the helpline numbers provided by the company. If the power distribution company is at fault and the additional units are actually charged by them, any additional amount is paid.

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