Understanding Kwh and Why It’s Important for Your Business

If you run a business, then you must have come across the concept of electricity cost per kWh and gas cost per kWh. It might be confusing at the start, but you must understand them to know-how suppliers from your utility bills and know how to switch between energy suppliers to save energy costs.

Nowadays, most of us take electricity for granted. But in reality, it’s a huge blessing and should be used carefully. One must know where energy comes from and how your utility bills are calculated.

What exactly is kWh?

Kilowatt per hour or kWh is the unit of energy. It is used to calculate electricity and energy consumption by a house, office, or other building.

It is the standard unit of energy used worldwide by energy suppliers to measure your energy consumption. One unit of energy is equal to 1000 watts per hour.A typical small household occupied by two individuals’ uses 1800 kWh of electricity every year and 8000 kWhs of gas every year.

On average, a household with three-four bedrooms, with everyone working full time and children going to school, uses 3000 kWh of electricity every year and nearly four times the gas a year.

Lastly, large families of 5-6 individuals who spend most of their time at home use about 5000 kWhs of electricity every year and 18000 kWhs of gas per year.

kW vs. kWh

kW (kilowatts) is a unit of power, and on the other hand, kWh (kilowatts per hour) is a unit for energy.

kW describes the amount of energy a device uses to function, and kWh tells us how much energy was used.

Different appliances of different brands use different amounts of energy. For a rough estimate, one kWh represents a full washing machine, full dishwasher, watching TV for many hours, boiling 11 kettles, using your laptop or computer for many hours.

Electricity and gas price per kwH in the UK

The electricity cost is not the same nationwide. In fact price per kwH varies according to your neighborhood. You have the option to switch between energy suppliers in the UK. This means you have a wide variety of options to shop and choose the cheapest deals from.

Average electricity and energy price per kWh

Electricity is three times more expensive than gas. When we calculate energy savings on different appliances, we use the general price per kWhof 15.75p per kWh (March 2019). The actual cost depends on location, the kind of energy plan you use, how you pay your bills, and the time when you consumed the energy. You can find out your actual energy consumption in kWh by asking your energy supplier. Knowing your consumption can help you save loads of money.

In conclusion

It is very important to know the basics of energy consumption, for example understanding of what is kWh and kW, your area’s electricity prices, how they may vary, and calculating them. Having a firm grasp of these concepts can make things easy for you in your business.

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