Cost per kWh Formula:
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Definition: This calculator determines the cost per kilowatt-hour (kWh) of electricity based on your total bill and energy usage.
Purpose: It helps consumers and businesses understand their electricity costs and compare rates between different providers or billing periods.
The calculator uses the formula:
Where:
Explanation: The total bill is divided by the total kilowatt-hours used to determine the average cost per unit of electricity.
Details: Knowing your cost per kWh helps with budgeting, comparing energy tariffs, identifying potential savings, and understanding energy consumption patterns.
Tips: Enter your total electricity bill in pounds (£) and your total usage in kilowatt-hours (kWh). Both values must be greater than 0.
Q1: Where can I find my bill and usage information?
A: These figures are typically shown on your electricity bill or online account with your energy provider.
Q2: Why is my calculated cost per kWh different from my tariff rate?
A: The calculation includes all charges (standing charges, VAT, etc.) divided by usage, while the tariff rate is just the unit charge.
Q3: How can I reduce my cost per kWh?
A: You can switch to a cheaper tariff, reduce usage during peak times (if on time-of-use tariff), or negotiate with your provider.
Q4: Is this the same as the unit rate?
A: Not exactly - this is your effective rate including all charges, while the unit rate is just the cost per kWh before other fees.
Q5: How often should I calculate this?
A: It's good practice to check with each bill, especially if you're on a variable tariff or considering switching providers.