Monday, November 19, 2007

How Do I Work Out an Electricity Bill Myself?

Electric companies use computers to calculate charges based on the number of kilowatt-hours (kWh) a consumer uses. Typically, the computers are accurate and create no errors. Problems arise when, because of computer or human error, a customer receives a very high bill. If you do not know how to work out your bill and calculate what your charges should be, you can face difficulty explaining the problem to the electrical company.

Instructions

    1

    Enter the amount of energy used. Power companies list this in kWh. Typically, companies provide comparison usage for the previous month and the previous year so you can see if your usage changed.

    2

    Multiply your company's charge per kWh times the number of kWh you used. For example, if you used 1,000 kWh and your company charges $0.0850 per kWh, your usage charge is $85.

    3

    Add the service fee to your usage charge. Some power companies charge customers a monthly service charge. For example, if your service fee is $8, add $8 to $85 -- the amount calculated in Step 2 -- to get a subtotal of $93.

    4

    Multiply your subtotal by your state and municipality tax rate. For example, if your state tax rate is 7 percent and your city tax rate is 0.25 percent, multiply $93 -- the amount calculated in Step 3 -- times 7.25 percent to get your total charge of $99.74.

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