Guide

How TNEB electricity slabs actually work

The single biggest reason people misjudge their bill: TNEB's tariff isn't flat, it's telescopic. Here's what that means and how to calculate it yourself.

What "telescopic" billing means

TANGEDCO does not charge one flat rate for all the units you use. Instead, your consumption is split into bands (slabs), and each band has its own rate. Only the units that fall inside a given band are charged at that band's rate — not your entire usage.

This is different from how many people assume it works. A common mistake is looking up which slab your total usage falls into, then applying that single rate to every unit. That would overcharge you significantly. In telescopic billing, the lower slabs stay cheap (or free) no matter how much you use overall.

Rule of thumb: if you used 350 units, you do not pay the 201–400 rate on all 350 units. You pay the free rate on the first 100–200, a lower rate on the next band, and the higher rate only on the units that spill into the top band.

Worked example: 350 units, old tariff

Using the pre-May 2026 slab structure for consumption at or below 500 units:

BandUnits chargedRateAmount
1–100100Free₹0
101–200100₹2.35₹235
201–350150₹4.70₹705

Total energy charge: ₹940 for 350 units — not 350 × ₹4.70 (which would wrongly total ₹1,645).

Why this matters when comparing tariffs

Because billing is telescopic, a change to just the "free units" threshold (like the new 200-units-free scheme) can meaningfully lower your bill even if every paid slab rate stays exactly the same — because more of your usage now falls into the free band before any paid rate kicks in.

What's not included in slab charges

These are why a slab calculator's estimate (including ours) will usually come in slightly lower than your actual bill.

Want to see this worked out for your own units, comparing the old and new tariff side by side? Use the calculator →