Electricity

How to split a shared electricity bill fairly

When several tenants share one meter, splitting the bill equally is simple but often unfair: someone who moved in halfway through the month pays as much as someone who was there all along. The fair way is to split by the days each person was actually present.

The fair rule: split each stretch among the people there

Take the period between two meter readings and the bill for it (units used × the rate per unit). Divide the period into stretches by who was living there. Each stretch’s share of the bill goes to the tenants present during it, split evenly between them. A stretch where only one tenant was there is billed entirely to that tenant.

A worked example

The meter was read on 1 October and again on 31 October: 300 units at ₹8 per unit, a bill of ₹2,400 for 30 days. Asha lived in the room all month. Ravi moved in on 16 October.

From 1 to 16 October (15 days, half the period) only Asha was there, so that half of the bill, ₹1,200, is hers. From 16 to 31 October (the other half) both were there, so that ₹1,200 is split evenly: ₹600 each.

Asha pays ₹1,800 and Ravi pays ₹600. An equal split would have charged Ravi ₹1,200 for half a month.

How OurGuests does it for you

In a PG room, enter the new meter reading and the date you took it. OurGuests works out the units and the bill from the room’s rate, splits it by exactly the rule above, adds each tenant’s share to their account and notifies them. You can also enter a bill amount directly if you prefer.

Before you save, the form shows the total and each tenant’s share, worked out the same way the bill will be. Every bill keeps its meter readings, units, rate and split, so tenants can see exactly how their share was calculated.

  • One reading per room, split by days present
  • Each tenant’s share shown before saving and on their own account
  • For flats billed by the landlord, enter the reading with the payment
  • For tenants who pay the electricity company directly, nothing to split

Frequently asked questions

Why not just split the bill equally?

An equal split charges someone who stayed a few days the same as someone who stayed the whole month. Splitting by days present charges each tenant for the time they actually used the room.

What if a tenant moves out before the meter is read?

A bill is split among the tenants living in the room when it is recorded. Take a meter reading on the day a tenant moves out, before ending their stay, so their share is billed to them and not to the tenants who stay.

Can I enter the bill amount instead of a reading?

Yes. Enter the amount directly and OurGuests splits it the same way.

Do tenants see how their share was calculated?

Yes. Each bill shows the meter readings, units, rate and each tenant’s share.

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