Electricity Tariffs - How to Calculate Cost
Electricity usage is measured through your meter by
using kilo watt hour units (kWh)
What this means; for every 1000 watts of electricity you use per
hour is one unit, 1 kWh.
So for instance, if you have a 1000 watt fan heater running constant
for one hour, that would be measured through your meter as 1 kWh.
Or perhaps 10 x 100 watt lamps on for 1 hour also = 1 kWh…and so on.
So lets say the provider charges 10p per kWh, the cost for the
heater to run would be 10p per hour, similar the 10 lights on would
be 10p per hour.
But it is not so simple, some companies also have standing charges,
some companies have no standing charges but charge a higher rate per
kWh.
Some companies may also charge a higher rate for the first say 200
units, then less for the rest.
So at first glance the actual cost can be difficult to compare with
other suppliers, depending on the amount of electricity you use.
Look for the small print, what is the actual cost per kWh, are there
standing charges, are the first couple of hundred units much higher?
(they often are)
Especially in summer a light user may not even reach the threshold
for the lower tariff.
You will need to do some basic maths to find out if you could get a
better deal by switching to others. (do not rely on online
comparison sites)
I have just switched to EBICo, the standard charge is higher @
14.13p per kWh but no standing charges or high starting unit
prices..standard rate of 14.13 per unit with no nasty surprises, so
it is simple to estimate costs. By switching I will save in the
region of £80.00 per year in electricity alone.
EBICo tariffs may not suit all users, for heavy users they may be
more expensive than some.
Gas tariffs are more or less the same to work out, but
measured in cubic metres, find out the cost of each actual unit and
then make comparisons.
Ebico are currently charging a flat 2.86p per unit, with no standing
charges.