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Why does your neighbour pay less for electricity than you?

Comparing the totals of two bills tells you nothing. The number to compare is a different one, and getting it takes less work than you would think.

11 min read Published on

In short

Two neighbouring homes pay different bills for seven reasons that stack up: the estrato, the subsidised consumption threshold, each house's actual consumption, the retailer and the grid operator, the length of the billing cycle, the non-energy items that ride on the bill, and the efficiency of the dwelling. To compare them you have to look at the effective price per kWh, not the total payable.

Key points

  • Comparing totals is useless: the total mixes energy, public lighting and other charges.
  • The comparable number is the effective price per kWh, and it comes from one division.
  • Two prices can coexist inside a single bill: subsidised consumption and consumption above the threshold.
  • The retailer and the grid operator are not the same across the country, and that moves the tariff.
  • A longer cycle or an estimated meter reading explains many 'odd' months.
  • If the bill does not add up, the complaint goes to the retailer first.

Two bills from the same block

It is a scene repeated in any neighbours' group chat: someone shows their bill, someone else shows theirs, and the figures look nothing alike even though the houses do. From there comes the same hasty conclusion: one of the two is being overcharged.

Sometimes that is true. Most of the time it is not: there is a concrete, verifiable explanation, and it is written on the bill itself. The problem is that the wrong number is being compared.

This article runs through the seven reasons two neighbouring bills diverge, in order of how much they usually weigh. At the end is the only calculation that makes two bills comparable, and which part of all this a solar system can change.

Reason 1: not everyone pays the same price per kWh

The first and largest has nothing to do with how much energy you use, but with what each unit costs you.

The residential utilities regime, set out in Ley 142 de 1994, runs on a logic of solidarity: lower estratos receive a subsidy on part of their consumption, and higher estratos, along with commercial and industrial users, pay a solidarity contribution that funds it.

It is not a hidden calculation. It appears as its own line on the bill, negative if you are subsidised and positive if you contribute. Two similar-looking houses can sit in different estratos — stratification is assigned to the property by the municipality — and that alone is enough for the effective price of energy to diverge noticeably.

It is also why the same solar system saves different amounts in two identical houses: savings are kilowatt-hours no longer bought multiplied by what buying them used to cost.

Reason 2: two prices inside the same bill

Here is the nuance that causes the most confusion, and it explains why the bill sometimes rises far more than consumption did.

The subsidy does not cover everything you use: it applies up to a threshold, the subsistence consumption, set by the Ministry of Mines and Energy and not the same across the country, because it depends on the municipality's altitude. Whatever you consume above that threshold is billed without subsidy.

The consequence is that a subsidised home has two prices living inside the same bill: some cheap kilowatt-hours and some expensive ones. A month with slightly higher consumption can push a larger share of the spend into the unsubsidised band, and the bill grows faster than the consumption did.

Your neighbour may be in the same estrato as you and still stay under the threshold while you cross it every month. Same nominal tariff, very different bill.

Reason 3: the consumption you do not see

The most obvious reason tends to be looked at last, and it nearly always contributes something: the two houses do not use the same amount.

Air conditioning, an electric shower, a water pump, the old fridge in the back kitchen, the garage door motor, and a house with someone working from home versus one empty from nine to six produce consumption that diverges far more than people estimate by eye.

The place to check is not the current month but the consumption history chart that almost every bill prints. That shows whether your consumption is stable or has been climbing for months, which is the difference between a strange charge and a new habit.

If the chart shows a step that starts in a specific month, there is nearly always an identifiable culprit: a new appliance, a repair, one more tenant in the house, or a faulty unit left running.

Reason 4: not everyone buys their energy from the same place

In Colombia the energy reaching your home is sold by a retailer and transported by a grid operator, and neither is the same across the country.

The tariff you pay incorporates components that depend on that geography and that company: the cost of the generation purchased, transmission, distribution in your area, recognised losses, and retailing. Two neighbouring municipalities can be served by different operators, with different cost structures.

That is why comparing your bill with a relative's in another city is of little value, and why any article publishing 'the tariff in Colombia' as a single number is simplifying something that is not single.

Within one block this reason rarely applies, but it is the one that explains the big differences between regions.

Reason 5: the billing cycle and the estimated reading

Two administrative causes explain a huge share of 'odd' months and have nothing to do with consumption.

The first is the length of the period. Billing cycles do not match the calendar month and they do not all have the same number of days. A thirty-three-day cycle bills more energy than a twenty-eight-day one even if your habits have not changed at all, and your neighbour may be on a different cycle.

The second is the meter reading. When a reading cannot be taken, consumption is estimated from the history and adjusted in the following period. That produces the classic pattern of an abnormally low month followed by an abnormally high one, which is not a billing error but the correction of the earlier estimate.

Before complaining, it is worth checking two figures printed on the bill itself: how many days the period covers, and whether the reading was actual or estimated.

  • Days covered by the billed period
  • Whether the reading was taken or estimated
  • Previous and current meter readings
  • Consumption for the period in kWh, not in pesos
  • History of recent months

Reason 6: what rides on the bill and is not energy

The electricity bill is also a collection vehicle for items that are not energy, and that is one reason comparing totals means nothing.

Public lighting is the most common case: it is a municipal tax collected through the bill and calculated on each municipality's own criteria, not on your kilowatt-hours. In many places waste collection rides along too. And on plenty of Colombian bills there are also instalments for purchases financed through the retailer, which are consumer debt rather than a service.

Two neighbours with the same energy usage can be paying very different totals for this reason alone. And it has an important consequence for anyone assessing solar panels: none of these items disappears with a photovoltaic installation.

Before drawing conclusions, isolate how much of your bill corresponds to the energy service. That is the only block the comparison — and solar — can touch.

Reason 7: the house counts too

Finally, something that appears on no line of the bill but is reflected in all of them: two dwellings that look alike from outside can behave very differently.

In a hot climate, orientation, roof insulation, cross ventilation and how much sun the façades take decide how many hours the air conditioning runs, usually the biggest consumer in the house. A dwelling that heats up more spends more even with the thermostat on the same number.

At altitude the equivalent happens with electric showers and water heating. And in any climate, the number of people and their schedules weigh more than the size of the property.

It is the least cited reason and one of the most decisive, because it cannot be fixed by changing tariff: it is fixed by changing the house or the equipment.

How to compare two bills properly

The total payable is not comparable because it mixes different things. The number that is comparable comes from a division.

Take the energy service charge — no public lighting, no waste collection, no instalments for anything — and divide it by the kilowatt-hours consumed in the period. That is your effective price per kWh, with subsidy or contribution already baked in. Have your neighbour do the same with theirs.

With those two numbers in hand the conversation changes completely. If the prices per kWh are similar and the totals are not, the difference is in consumption or in the non-energy items. If the prices per kWh diverge, the explanation lies in the estrato, the subsistence threshold or the retailer.

Do it over twelve months and use the average. A single month can be distorted by a long cycle, an estimated reading or a holiday.

  • Separate the energy service charge from the rest of the bill
  • Divide it by the kWh for the period
  • Repeat across twelve months and average
  • Compare that price per kWh, never the total
  • Look at the history before blaming the charge

Which part of this solar panels change

If you got this far looking for a way to pay less, it is worth being precise about what a solar system touches and what it does not.

A grid-connected system reduces the kilowatt-hours you buy. The energy you consume at the moment it is generated saves you the full tariff; what is left over is exported to the grid and offset according to article 25 of Resolución CREG 174 de 2021, as amended by Resolución CREG 101 072 de 2025, at a value that need not match that tariff. That is why two houses with the same system and different schedules save different amounts.

What it does not touch are the non-energy items or the charges tied to staying connected to the grid, which is precisely what you are buying: permanent backup. Hence the bill does not reach zero, and any promise of a 'zero bill' describes something the Colombian scheme does not do.

And hence the practical conclusion: the higher your effective price per kWh, the more each unit you stop buying is worth. That number, the one you have just worked out, is exactly the starting point of any serious savings estimate.

By day · exports the surplusPanelsHomeMeterGridBy night · draws from the gridPanelsHomeMeterGridPanels do not produce at night: the grid acts as backup.
The bidirectional meter records both directions separately. During the day you export your surplus to the grid; at night you draw from it. At the end of the billing period the two amounts are netted off.

If you really believe you were overcharged

When the numbers still do not add up after all of the above, there is a procedure and it is worth following in order.

The complaint is first submitted to the retailer that issues the bill, which is obliged to respond. If the response does not resolve it, the Superintendencia de Servicios Públicos Domiciliarios is the body that oversees the provision and billing of these services and the next place to turn.

Before filing anything, have the data that supports the complaint to hand: the previous and current readings, the days in the period, the consumption history and the previous period's bill. A complaint with those four elements is resolved far better than one that only says the bill arrived high.

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Sources: Ley 142 de 1994 (Public Utilities Law) (opens in a new tab) · Superservicios (opens in a new tab) · Resolución CREG 174 de 2021 (net metering regulation) (opens in a new tab) · Resolución CREG 101 072 de 2025 (amends the net metering regulation) (opens in a new tab)

Frequently asked questions

Why did my bill go up if I am using the same amount?

The most frequent causes are not about consumption: a billed cycle with more days, an estimated reading corrected in the following period, or consumption that crossed the subsidised threshold and started being billed without subsidy. Check the days in the period and whether the reading was actual or estimated before drawing conclusions.

Can I compare my bill with my neighbour's?

Only if you compare the effective price per kWh and not the total payable. The total mixes the energy service with public lighting, waste collection in some municipalities and sometimes instalments for financed purchases. Divide the energy service charge by the kWh for the period and compare that number.

Does the estrato change what I pay per kilowatt-hour?

Yes. Estratos 1, 2 and 3 receive a subsidy on part of their consumption and estratos 5 and 6, along with commercial and industrial users, pay the solidarity contribution, under the regime of Ley 142 de 1994. It appears as an explicit line on the bill and it changes the effective price of each kWh.

What is the public lighting charge on my bill?

It is a municipal tax collected through the electricity bill. It is calculated on criteria each municipality sets and does not depend on your consumption, so two homes with the same energy usage can pay different amounts for it. A solar system does not reduce it.

Do solar panels eliminate the bill?

No. They reduce the kilowatt-hours you buy from the grid, which is the largest block of the bill in most homes, but they do not touch public lighting, waste collection or the charges tied to staying connected. The bill falls; it does not disappear.

Where do I complain if I think the charge is wrong?

First to the retailer that issues the bill, which must respond to your complaint. If the response does not resolve the problem, the Superintendencia de Servicios Públicos Domiciliarios is the body that oversees the billing of these services. File the complaint with the meter readings, the days in the period and the consumption history.

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