The Meter Box
When electricity is delivered to your home, it first goes through your electrical meter box. This is what measures how many units of energy your household uses. This is measured in kWh – kilowatt hours – and is what your energy provider uses to determine how much power you used during your billing cycle (and hence how much you will be charged).
You are charged by the number of total units used in a cycle, meaning the total kWh used. 1 kWh is the amount of watts used, multiplied by the number of hours used, divided by 1000. For example, if you use a 1000W electrical appliance for one hour every day, then the total kWh used by this appliance is one kWh per day. How much this costs you will depend on your energy provider.