1. What Is The Electricity Cost Formula?

The electricity cost formula calculates the total cost of electricity consumption by multiplying energy usage (in kilowatt-hours) by the cost per unit of electricity (in pounds per kilowatt-hour).

2. How Does The Calculator Work?

The calculator uses the electricity cost formula:

Where:

• \( E \) — Energy consumption (kWh)
• \( C \) — Cost per unit (£/kWh)

Explanation: This simple formula provides the total cost of electricity based on consumption and the rate charged by your energy provider.

3. Importance Of Electricity Cost Calculation

Details: Calculating electricity costs helps households and businesses budget effectively, understand energy consumption patterns, and identify potential savings through energy efficiency measures.

4. Using The Calculator

Tips: Enter your energy consumption in kilowatt-hours (kWh) and the cost per unit in pounds per kilowatt-hour (£/kWh). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my energy consumption data?
A: Your energy consumption is typically shown on your electricity bill or can be read directly from your smart meter.

Q2: How do I find my cost per kWh?
A: The cost per kWh is listed on your electricity bill under the tariff details section. This rate may vary depending on your energy plan and time of use.

Q3: Does this calculator include standing charges?
A: No, this calculator only calculates the cost based on energy consumption. Standing charges are typically added separately to electricity bills.

Q4: Are VAT and other taxes included?
A: This calculator provides the base cost before taxes. Your final bill will include VAT (currently 5% for domestic energy in the UK) and other applicable charges.

Q5: Can I use this for business electricity calculations?
A: Yes, the formula works the same for both domestic and business electricity calculations, though business tariffs may have different rate structures.