Electricity Consumption Estimation

For the societies which need to bill the residents on the electricity consumption, they need to have one important process for estimated consumption. There are scenarios when the metered consumption is not available, mostly in case of issues with the meters or sometimes issues with DG signal etc. The societies need to have a process for the consumption estimation.


In general, the societies take an average consumption of the last 6 months to calculate the estimated consumption in a month. This method works but does not take care of the scenarios such as:


  • Seasonal variation of the consumption

  • Considerations of the meter readings available in the month (it is not the faulty meter or faulty reading is detected at the end of the month; it could be detected any time of the month and the metering in the month can be corrected – thus there would be periods in a month for which a good meter reading is available)

  • Split between Grid and DG consumptions (average consumption at the total level is acceptable to some point – but the average DG consumption concept is very much out of place)




There is a better process driven methodology is needed. The approach should consider the following points:


  1. How to use the consumption data even if available for some days in a month – Let us say that a meter got burnt on 14 of the month and a new meter was provided. The new meter would provide the consumption for 16 days. In our view this should be the basis of the consumption for all 30 days (or 31 days) of the month.  Additionally, if the DG run data is available for 14 days, the same should be used for account for the DG consumption and Grid consumption split.

  2. In case thee consumption data needs to be estimated for the complete month, we recommend that the monthly estimated consumption should be calculated based on a reference consumption – say total consumption of the society. Thus the monthly estimated consumption (total) for a flat should be determined by the following formula:


Consumption for the month (n) = [Reference consumption for month (n) /Reference consumption for the month (n-1)]* consumption for month (n-1)


                The total consumption then should be split in the ratio of grid consumption and DG consumption based on the number of hours for which DG has run.


Of course, the process is simpler to right in a document and more difficult to put into a process. The society does need to have a good meter replacement process for executing the consumption estimation process. It is necessary that a society has a good process for replacing a meter and recording the same.



0 #1 Personal 2014-03-05 10:01
Please let me know the regulation with respect to this process


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