Determining the cost of electrical consumption involves understanding the components that comprise the total amount due. Utility companies typically base charges on kilowatt-hours (kWh) consumed, reflecting the amount of energy used over a specific period, usually a month. As an example, operating a 100-watt light bulb for 10 hours consumes 1 kWh (100 watts x 10 hours = 1000 watt-hours = 1 kWh).
Accurately projecting or auditing energy expenses provides valuable insights into household or business operational costs. Doing so facilitates informed budgeting, enables the identification of energy-intensive appliances, and encourages energy conservation practices. Historically, estimations relied heavily on standardized usage tables and manual calculations. The advent of smart meters and online portals has introduced more precise tracking and automated billing mechanisms.