The amount of power used to keep this bulb lit for 10 hours would be equal to 1 unit of electricity. Imagine you have a 100-watt bulb at your home. One unit of electricity refers to 1 kilowatt-hour (kWh) power. You must have often heard of the term, ‘unit’ mentioned around the electricity bill or your electricity consumption. Common Terms Used for Calculating Electricity Billīefore moving on to the process that is followed while calculating the electricity bill, let’s take a look at some of the important terms used in the process. In this blog, let’s understand how an electricity bill is calculated using meter readings. Ever wondered how your electricity bill is calculated? While most of you may not be much interested in knowing the answer to this, some of you would still want to understand the logic that works behind calculating an electricity bill.īut you would know that to calculate the electricity bill, the meter readings are taken into consideration.
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