The Cost of Electricity

• The cost of electricity is determined by multiplicity of variables; a key element to be aware of is the charge per unit of electricity (kilowatt hour or kWh).

• Electricity metres record how much electricity you’re consuming. The consumption unit they record in is kilowatt-hour (kWh). 1 kilowatt hour (kWh) equals to 1,000 watts being utilised in an hour.

• Electricity suppliers may charge different rates per kWh depending on your tariff.

• To calculate the cost of running an electrical appliance, you need to consider the power rating of the appliance (measured in kilowatts or watts), how long the appliance is switched on for, and the cost per unit of electricity.

• The formula for calculating the cost of running an appliance is: cost = power (kW) * time (hours) * cost per unit (pence per kWh).

• Be aware that domestic appliances will usually have their power rating listed in watts (W) whereas the unit for electricity is kilowatt (kW). Therefore, when calculating the cost, remember to convert watts into kilowatts by dividing by 1000.

• When considering energy efficiency in households, appliances with lower power ratings or those used for short periods of time will be cheaper to run.

• Energy-saving appliances or light bulbs may cost more to buy initially but can save money in the long run by using less electricity.

• Time of use tariffs, also known as Economy 7 or Economy 10, charge a lower rate for electricity during off-peak hours (typically overnight). Using electricity-hungry appliances during off-peak hours can decrease electricity bills.

• Renewable energy solutions, such as solar panels or wind turbines, can help reduce electricity costs and are more environmentally friendly. However, consider that these systems carry significant installation costs.

• Different countries have different electricity prices. Factors affecting these can include supply and demand, government subsidies, and the availability of renewable energy sources.