1. What is the Electricity Cost Formula?

The electricity cost formula calculates the total cost of electricity consumption in pounds sterling based on energy usage and the price per unit. This is the standard calculation method used in the UK energy market.

2. How Does the Calculator Work?

The calculator uses the electricity cost formula:

Where:

• \( kWh \) — Kilowatt hours (energy consumption)
• \( \text{Pence per kWh} \) — Unit price in pence
• \( 100 \) — Converts pence to pounds

Explanation: The formula multiplies energy consumption by the unit price, then converts from pence to pounds by dividing by 100.

3. Importance of Electricity Cost Calculation

Details: Calculating electricity costs helps households and businesses budget effectively, compare energy tariffs, and understand the financial impact of energy usage.

4. Using the Calculator

Tips: Enter your electricity usage in kWh and the price per kWh in pence. Both values must be positive numbers. The calculator will show the cost in pounds sterling.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my kWh usage?
A: Your electricity bill or smart meter display will show your consumption in kWh. Most bills show both daily and total period usage.

Q2: What's the average price per kWh in the UK?
A: As of 2023, typical prices range from 20-34 pence per kWh, but this varies by tariff, region, and time of use.

Q3: Does this include standing charges?
A: No, this calculates usage costs only. Add your daily standing charge separately for total bill amount.

Q4: How accurate is this calculation?
A: This provides exact cost for given inputs. Actual bills may vary slightly due to VAT, rounding, or time-of-use tariffs.

Q5: Can I use this for business electricity?
A: Yes, the same formula applies, though business tariffs often have more complex pricing structures.