There are a few easy ways to determine how an electrical rate is calculated. To understand how this works there are a few concepts you need to make sure you know. One of which is the difference between watts and watt hours. You will also want to know how to find the kilowatt hours used for a device in order to determine how much electricity will be needed.
The difference between watts and watt hours
The primary difference between watts and watt hours is that watts are the rate of electricity being used at a particular moment, whereas watt hours help measure that over time. Watt hours are determined by how long you use a device. Think of it in the same way as burning gasoline in an automobile. For the sake of example say you burn more gas the faster you go. Therefore if you say you're driving at a rate of 40 KPH does not indicate how long the duration of your speed is. This is that same when you say that some electrical component uses 500 watts. It does not say how long it is used. It is also necessary to understand Kilowatt hours and how an electrical rate is measured.
What is a Kilowatt Hour?
To determine watt hours you need to multiply how long you use a device by how many watts it uses. Getting kilowatt hours is done in the same way except afterward you would divide your answer by one thousand. Therefore if a 100 watt light bulb is used 60 hours a month then you would be using 60Kwh. Kwh is the most common way kilowatt hours are abbreviated. This is a very important piece of information to know, because this is the way electric companies charge for electricity. The average person does not know what a kilowatt hour is and just pays their rates blindly. If you're knowledgeable about this you can save a lot of money either through being able to identify if you're being charged for more time then you are using or through cutting back and only using as much electricity as you would like to.
The variables effecting electrical rates.
Electric rates vary all over the country. There are also several companies which provide electricity. In modern times it is possible that one are may be able to get electricity from more than one provider. If this is the case then it is important to shop around and find the lowest possible rates. Some places even go so far as to charge different rates throughout the day and night. If this is the case you should try to use and utilities you need to these hours. Things like washing machines and dish washers can usually be put on hold until the optimal time to run them.
So, if you're not planning on converting to solar power or going off the grid completely you're going to have to use electricity. Using electricity can be done with much less expense if you take the time to understand electrical rates. It is important if you want to be frugal to be very knowledgeable.