Landlord charging ₹10 per unit? Sub-meters, PG electricity and tenant rights in India

When you rent a room, flat or PG bed that shares one DISCOM connection, your landlord usually reads a private sub-meter and charges you a flat rate per unit, often ₹8, ₹10 or more. The DISCOM bills the landlord at the SERC tariff for that connection; the landlord then recovers the cost from tenants under the rent agreement. The SERC tariff does not directly bind the landlord's private charge, so a tenant's main protection is the agreement itself: insist on a clear clause on how electricity is charged, ask to see the DISCOM bill, and compare the landlord's rate with the actual average rate on that bill. Where a building has a single-point supply arrangement approved by the SERC, such as some housing societies, the SERC's rules on resale of power may limit what can be charged.

Part of how to complain to the CGRF and Electricity Ombudsman.

Why sub-metered rates are often higher

Reason	Effect
All tenants' units are added on one connection	Units fall into the top slabs, so the average rate on the DISCOM bill is high
Subsidy schemes are per connection	A 200-unit free limit may be lost because the combined consumption is far above it
Common areas	Stair lights, water pump and lift are shared, and landlords often recover them in the per-unit rate
Fixed charge and surcharge	Spread across tenants
Landlord margin	Some landlords add a profit, which tenants may dispute

Illustrative example (Delhi DERC schedule): a house with four tenant units on one connection uses 1,000 units a month, 3 kW per unit, 12 kW sanctioned.

Item	Calculation	Amount
Energy	200 × 3 + 200 × 4.50 + 400 × 6.50 + 200 × 7.00	₹5,500
Fixed	12 kW × ₹100	₹1,200
Surcharge and tax (illustrative 25%)	25% × ₹6,700	₹1,675
Total		₹8,375
Average per unit	₹8,375 ÷ 1,000	₹8.38

If each of the four flats had its own connection at 250 units a month, each would pay 200 × 3 + 50 × 4.50 = ₹825 energy, an average of ₹3.30, and could claim the 50% subsidy. That is why separate meters can save a lot.

So ₹8–9 per unit may be close to the landlord's real cost in this example; ₹15 per unit would not be.

What to agree before you move in

Clause	Why
Rate per unit, or "actual as per DISCOM bill"	Prevents arbitrary increases
How common-area use is shared	Avoids paying for the lift or pump twice
Reading date and method (photo of sub-meter)	Evidence for each month
Opening and closing readings	Settles the final bill at move-out
Copy of the DISCOM bill on request	Lets you check the average rate
What happens if the rate changes	Ties increases to tariff or surcharge changes

If you think you are overcharged

Collect readings: photograph your sub-meter monthly, with the date.
Ask for the DISCOM bill and calculate the average rate (total bill ÷ total units).
Compare with what you are charged and the share of common areas.
Write to the landlord with your calculation and propose a fair rate.
Negotiate a separate meter if the house layout allows; the owner applies to the DISCOM.
Escalate: a landlord's private charge is a contractual matter, not usually a DISCOM matter, so the CGRF may not hear it. Tenancy disputes go to the Rent Authority or civil court under your state's tenancy law; a consumer commission may be an option where services are being provided for consideration. Take advice for large amounts.

Housing societies and single-point supply

Some SERCs allow a housing society, a builder or a commercial complex to take a single-point bulk supply and distribute it to residents, with rules on what residents can be charged, often no more than the tariff applicable to the residents' category. Tamil Nadu's TNERC order, for example, has a separate LT-IC category for bulk supply with single-point metering, charged at a single rate. If you live in such a building, ask the society or developer which SERC order the arrangement is under. If the SERC caps resale charges, an overcharge can be raised with the DISCOM or SERC.

Subsidy and free power for tenants

State subsidy schemes generally attach to the registered domestic connection. A tenant with their own meter in the landlord's name can benefit if the landlord registers the connection and passes the benefit on; behind a shared connection the subsidy is usually lost. Some states have allowed tenants to claim through additional documentation; check your state's scheme. See free electricity schemes.

PG and hostels

PG operators often include electricity in the rent up to a limit, or charge separately for AC rooms. Ask for the AC room's sub-meter reading and the rate in writing. A 1.5-ton AC used 8 hours a night can add 150–300 units a month, which at ₹10 a unit is ₹1,500–3,000, so the rate matters.

Frequently asked questions

Is it legal for a landlord to charge more than the DISCOM rate?

Outside approved single-point supply arrangements, it is mainly a matter of contract. Unclear or arbitrary charges can be challenged under the rent agreement and tenancy law. Get the rate in writing before you move in.

Can a tenant apply for a separate electricity connection?

Usually the owner applies, or the tenant applies with the owner's consent and documents. DISCOMs have rules on connections for tenants; ask your DISCOM.

Who pays the arrears if the landlord does not pay the DISCOM?

The connection holder, usually the landlord, is liable. If supply is disconnected for the landlord's arrears, a tenant can raise it under the rent agreement. Ask for proof of DISCOM payments if you pay electricity to the landlord.

Sources and where to check

TNPDCL — TNERC tariff order, LT-IC bulk supply category
Delhi Electricity Regulatory Commission — Delhi tariff and single-point supply provisions
Ministry of Housing and Urban Affairs — Model Tenancy Act and state tenancy laws
National Consumer Helpline — advice on service disputes