To split the common area electricity bill fairly, add up what the common meter charged for the month, pick one method that the residents agreed on (equal share, share by flat size, or share by usage), and divide the total by that method. For most buildings, an equal or size based split is the simplest to explain, and showing the utility bill copy next to the calculation ends most arguments.
What does the common area meter actually pay for?
In many apartment buildings and plazas in Karachi, Lahore and Islamabad, one meter feeds the shared parts of the building. Typically that is:
- Stair, corridor and parking lights
- The water pump or booster that fills the overhead tank
- The lift
- Gate lights, intercom and security equipment
- In plazas, shared washrooms and common signage
The bill comes from the distribution company that serves your area, such as K-Electric in Karachi, LESCO in Lahore or IESCO in Islamabad and Rawalpindi. The tariff and meter type can differ from a normal house connection, and building meters are sometimes in the name of the builder or an old owner. Ask the company or a qualified professional if you are unsure what category your common meter falls under, and do not guess.
Generator fuel is a separate cost with its own method. If you have not read it yet, see our generator fuel split formula.
What are the three ways to split the bill?
1. Equal split. Total bill divided by the number of flats. Everyone pays the same.
- Easy to explain and easy to check.
- Works well when flats are about the same size.
- Feels unfair to a small studio when the building also has large penthouses.
2. Split by flat size. Each flat pays in proportion to its area, for example per square foot.
- Closer to the idea that bigger flats use shared services more.
- Needs an accurate list of areas, ideally from the original documents.
- Slightly more work every month.
3. Split by usage. Shared items measured separately, for example a sub meter on the pump or lift.
- The most precise.
- Needs sub meters and honest readings, which many older buildings do not have.
- For lights and a lift it is usually not practical, because you cannot measure which flat used which light.
A simple rule many committees follow: use equal or size based for the common meter, and use usage only where you can really measure it, such as a shop in a plaza that has its own sub meter for a heavy air conditioning load.
What does the calculation look like with real numbers?
The figures below are only an example, not real tariffs or a real building.
A building has 24 flats. The common meter bill for the month is PKR 96,000. Of that, the lift and the pump together are the largest part.
| Method | Calculation | Each flat pays | |---|---|---| | Equal split | 96,000 divided by 24 | PKR 4,000 | | By size (small flat 600 sq ft) | 96,000 x 600 / total area | Depends on total area | | By size (large flat 1,200 sq ft) | 96,000 x 1,200 / total area | Twice the small flat |
If the total area of all 24 flats is 18,000 sq ft, the rate is 96,000 divided by 18,000 = PKR 5.33 per sq ft. A 600 sq ft flat pays about PKR 3,200 and a 1,200 sq ft flat about PKR 6,400. Again, only an example.
What about the lift and the ground floor flats?
This is the question that causes the most arguments. There are two common answers:
- Everyone pays the same. The lift is part of the building, it adds to the value of every flat, and ground floor residents also use the corridors, the pump water and the lights.
- Ground floor pays less or nothing for the lift. Fair if the lift share is shown as its own line and everyone agrees.
Neither is right for every building. What matters is that the decision is made once, written in the meeting minutes and applied to everyone in the same way. Bring it up at the AGM instead of at the time of a bill.
How do you stop the bill from becoming a monthly argument?
- Attach the bill. A photo of the utility bill goes with the calculation. This is the same habit as in Proof ke saath hisaab: the number and the proof travel together.
- Show the formula. Not just "your share is 4,000" but "total 96,000 divided by 24 flats".
- Keep the method for a year. Changing the method every time someone complains destroys trust.
- Watch the trend. If a summer bill suddenly doubles, the cause may be a pump running too long or a lighting fault. Ask before you divide the extra.
- Pay the bill on time. Late surcharges are a committee cost, not a resident cost, unless the delay was caused by residents paying late. Say which in your rules.
- Keep it separate. Show the electricity line on its own in the monthly statement. Our monthly report template has a place for common area electricity.
Can the building lower the bill?
Often a little. Timers or sensors on stair lights, LED bulbs, a pump that runs on a schedule and not by hand, and a lift that is serviced on time all help. Do not promise a percentage saving, because it depends on the building. But a committee that shows the monthly figure and what it did about it usually gets more patience from residents.
What should be written in the rules?
- Which meter(s) are counted as common area
- Which method is used (equal, by size, or by usage)
- Who is billed in a rented flat (check by-laws and agreements)
- When the share is due, and what happens when it is late
- Who checks the bill against the meter before it is paid
For a dispute that cannot be settled inside the committee, ask a qualified professional, and do not settle it in the WhatsApp group.
A quick checklist
- Copy of the latest utility bill
- Method agreed at the AGM and written down
- Calculation shown to residents
- Electricity shown as a separate line
- Payment made before the due date
Nearlify keeps monthly bills, payment proofs and expenses with receipts together, so the electricity share and the utility bill copy stay in one record. You can look at it at https://nearlify.app/signup.