The Cost of Electricity

Understanding the Cost of Electricity

• Electricity is typically priced in units, where each unit is one kilowatt hour (kWh).
• A kilowatt hour is the energy used by a device that operates at 1 kilowatt (kW) for one hour.
• Therefore, the cost of electricity can be calculated by multiplying the number of units used (kWh) by the cost per unit.

Knowing the Cost per Unit

• The cost per unit for electricity will typically be given on your utility bill or can be obtained from your energy provider.
• This cost can vary depending on several factors including the time of day, therate/tariff, and your geographic location.

Estimating the Cost of Using an Electrical Device

• To estimate the cost of running an electrical device, you must first know the power rating of the device (in kW) and the expected usage time (in hours).
• Multiply the power rating by the time, which gives the energy usage in kWh.
• Then, multiply the energy usage by the cost per unit to find the total electric cost of using that device.

Tips to Reduce Electricity Costs

• Replace old, inefficient appliances with energy-saving models, as these use less electricity for the same output.
• Make use of timers and thermostats on heating systems to have them run only when necessary.
• Adopt habits that conserve electricity such as switching off lights when leaving a room, not overcharging devices, and using natural light when possible.