**How Electricity Bill Calculated**

** Electricity bill calculator**, the role of electricity price in your life is not less than the role of air. You can live without food for days but hardly without electricity. And all of it depends on the amount of money you pay for your electricity bill. Understanding how much electricity you use can be tough. Am I spending too much money? How can I buy less, but still live comfortably? These are some of the questions that we all ask at one point or another in our lives. So let’s take a dive into understanding how electricity is billed, and how to calculate your own electricity usage.

## Electricity/Energy Consumption

Electricity and energy consumption are two different things. Electricity is the actual juice that flows through your home and delivers heat and light. Energy consumption is how much of that electricity you use to power your appliances and electronics.

### Unit- A Measure of Energy Consumption

** Electricity bills** are calculated based on the amount of energy you have consumed over a given period. The measure of this consumption is called

**“Units”.**One unit of electricity is equal to 1 kWh (kilowatt hour). One kWh represents the consumption of

**1,000 watts**for one hour. The consumption is the product of power (W) and time (h).

Electricity usage is calculated by multiplying the number of kWhs by the rate per kWh that is charged by your provider. The rate per kWh can vary depending on where you live and what type of plan you have with your utility company.

**Unit Rates**

There are two types of unit rates: peak and off-peak rates.

### Billing period for Energy Consumption

A **billing period **or billing cycle refers to the period between two consecutive bills for your electricity supply. Your billing period will be determined based on when your meter was read last time and when it will be read next time around. Your bill will include the amount of electricity you used, as well as a demand charge, based on the highest peak consumption during the **billing cycle**.

Demand charges are based on your peak demand during a billing cycle and can be affected by a number of factors such as:

### Energy Usage by Appliances

The biggest source of energy consumption comes from appliances such as refrigerators, heaters, air conditioners, and washing machines. Lighting, heating, and cooling systems account for another 25 percent of household energy use.

The energy consumption of appliances can be found on their rating labels or in instruction manuals. For example, if you have a refrigerator rated at 3 kWh, then it will consume 3 units of energy for every hour that it runs. The same is true for other appliances like air conditioners and water heaters.

If you have a lot of people in your household, then your electricity bill will be higher than if you live alone. If you have more appliances, such as refrigerators, dishwashers, and televisions, then your electricity bill will also be higher than if you only had one or two appliances.

## Manual Calculation of Electricity Bill By Meter Reading

Electricity bills are calculated based on the **meter reading.** This is done by the meter readers who go around and read the meters of the customers. The electricity bills are generated and sent out to customers after they receive these readings.

The **meter reading date** is usually mentioned in the **top right corner** of your bill, or you can check it on your paper bill as well. It is important to know this date so that you can compare it with your previous bill, as that will inform you about how much electricity you have used since then.

If you are not satisfied with your current electricity supplier, then you should take a step forward and check your meter reading. You can do this by yourself or ask someone who is able to read meters easily. The purpose of doing this is to make sure that there is no discrepancy between actual usage and reported usage. The best way to calculate your electricity bill manually is by using this **formula**:

**Unit Consumed = Previous Units – New Units**

**For example:** If your previous units are 50kWh and your new units are 60kWh, then your unit consumed would be 10kWh (50-60).

#### Charges Applied to Units in Pakistan

Electricity charges are calculated based on the total units that have been consumed. The charge is calculated in slabs and each slab has a different rate of charge. The number of units consumed in a month determines which slab you fall into. The following table shows the charges applicable to different slabs:

**Slabs Or Variable Charges**:

The electricity bill is calculated by following the slab reading your meter falls in and also by containing the other chargers including:

- Duty on Electricity
- Meter Rent
- TV License Fee
- Bank Charges
- General Sales Tax

**Calculation of Electricity bill by Electricity bill calculator**

With the increase in electricity bills and the rising cost of living, people are looking for ways to reduce their electricity consumption. This is where an electricity calculator comes in handy. The electricity calculator allows you to calculate your monthly bill and see how much money it would take for you to pay off your outstanding amount.

**An electricity bill calculator** is the best tool to calculate the electricity bill. This free online calculator helps you calculate the electricity bill by giving you the estimation of your monthly electricity consumption.

The electricity bill calculation software provides you with an opportunity to quickly check your monthly or quarterly electricity bill amount before finalizing it with your provider company. The software also allows you to generate reports regarding your past electricity usage records which can be helpful for keeping track of your energy consumption pattern over time.

### How to use Electricity bill Calculator

You need to enter the following information in the calculator:

**1) Your Meter Reading: **Put the meter reading of your previous bill or the new reading of your meter.**2) Rate Per Unit:** Enter the rate per unit which appears on your bill (usually it is Rs/kWh).**3) Total kWh Used:** Calculate the total kWh used during a given period (e.g if you want to calculate the monthly electricity bill then select 30 days as the period and enter the total kWh used by multiplying above mentioned variables).

#### Basic Formula used to Calculate Electricity Bill by Electricity Bill calculator

**Monthly Electricity Bill =** **Watt Hours x Price per Kilowatt Hour (kWh)**

**As 1 unit = 1 kWh**

Then Total kWh = 1000 W x 24 Hours x 30 Days = 720000 watts/hr.

**By converting 720000 in kWh= 720000/1000= 720 kWh**

The total average units consumed per month are 720 kWh. If the Average cost of one unit is about 15 PKR then by using the above formula:

**Monthly Electricity Bill =** 720 x 15= 10800

So, the average estimated bill per month would be 10800.

**Final Words**

Electricity billing is the calculation of energy consumption by a utility company for its customers each month. The pricing of electricity typically varies by time of day, the season of the year, type of electricity (such as peak vs off-peak), and the amount of electricity that is being used by the customer. You can estimate your bill by checking the units consumed by meter reading. On the other hand, Electric bill calculators, also known as kilowatt hour (kWh) calculators, are useful tools that help home and business owners determine their electricity usage. They also show the estimated costs of using an amount of electricity for a single billing period or over multiple periods as allotted in a given contract agreement with an energy company. The results allow individuals to take control of their electric bill payments and cost estimations by showing them how much their bills will be given the use of certain appliances and everyday habits.