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Billing DG backup fairly: why grid and DG should be metered separately

Diesel generator backup is one of the most expensive services a society provides, and one of the most argued about. Fuel, maintenance and operator costs make every DG unit far costlier than a grid unit — so how that cost is shared matters.

The common approaches, and their problems

  • Equal share or share by flat area. Easy to calculate, but a flat that was locked during a power cut pays the same as one running three air conditioners.
  • Folding DG into maintenance. Hides the cost entirely, so nobody has a reason to use DG power carefully.
  • Estimating from total DG hours. Better, but still an estimate — and estimates invite challenge.

Metering by source

With dual-source metering, each flat's meter records consumption separately depending on whether supply is coming from the grid or from DG. Each source is charged at its own rate. A resident who used 0.8 units on DG during last night's outage pays the DG rate for exactly 0.8 units — no more, no less.

This does three useful things:

  1. It makes DG billing accurate, which removes the main source of disputes.
  2. It makes the cost visible, which encourages residents to go easy on heavy loads during outages and can extend DG capacity.
  3. It gives the committee source-wise reports to reconcile DG running costs against what was recovered.

Setting the DG rate

The DG rate should reflect the society's actual cost of generation — fuel plus a reasonable share of maintenance and operation. Many committees review it quarterly as diesel prices move. Whatever method is used, publishing how the rate was arrived at goes a long way towards acceptance.