Tenant electricity billing for landlords, PG and co-living owners

Encharge & PG billing · 8 min read · Updated 2026-03-25
TL;DR

A landlord can bill tenants for actual electricity consumption (no markup above utility tariff), using a certified sub-meter or IoT prepaid meter. Put the tariff, common-area split method and dispute resolution clause in the rent agreement to avoid issues.

Legal basics for landlords in India

  • —You cannot charge a markup above the utility tariff.
  • —Sub-metering for tenant billing is allowed under most state electricity laws.
  • —The rent agreement must mention the billing method.
  • —Common-area split must be transparent and auditable.
  • —DG-backup surcharge (if any) must be disclosed.

Rent-agreement clauses you should include

  • —Electricity is billed at actual utility tariff on a prepaid basis.
  • —Common-area electricity is split equally among occupied rooms / per head.
  • —DG backup is charged at ₹X per kWh (actual fuel + maintenance).
  • —Tenants will receive monthly itemised receipts on the Encharge tenant app.
  • —Dispute resolution: readings from the IoT meter are final.

Frequently asked questions

Can I add a service charge on top of the electricity bill?

Not on the electricity itself — that would be illegal markup. You can charge a separate 'property management / maintenance fee' clearly disclosed in the rent agreement.

What if the tenant disputes a reading?

With a certified IoT prepaid meter, readings are time-stamped and signed by the device. The tenant app shows the same data to the tenant — disputes become near-zero.

Related from Enlog

Encharge for PG / rental billingCommon area billing guide

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