Factoring Electrical Costs

Ever since man discovered and perfected means of generating electricity, it has become the backbone to the advancement of technological wonders.

Ever since man discovered and perfected means of generating electricity, it has become the backbone to the advancement of technological wonders. Today most of what we do revolves around devices which are powered through electricity.

 From the majority of the appliances that we use at home, to the devices that help us stay connected they are either plugged or charged through electricity. It is generated through various methods such as thermal plants, nuclear plants and hydro-power plants, and is distributed through immense electrical grids. Electricity isn’t free and every month households receive an electrical bill based on the consumption of it by their appliances. Thus, this article encompasses the basic knowledge of what goes on behind the scenes that determine the monthly cost of electricity.

Commonly known as the ‘unit,’ which is multiplied by the per-unit cost determined by Nepal Electricity Authority (NEA) with the added charge of service, is the amount that needs to be paid. A unit is the amount of electricity consumed and is measured in kilowatt-hours. Kilowatt is the standard measurement used to determine how much electricity is consumed and is factored in per power. The electrical devices that we utilize have an electrical rating in watt, which after reaching a factor of thousand, turns into a kilowatt.

A household’s electrical consumption is shown in an electric meter installed by NEA. The majority of electric meters used by the common households of Nepal is based on KWH. The other important factor is the ampere. Normally the meters issued by the NEA are at a standard of 5, 15, 30 and 60 amperes. Ampere in layman is the electrical load-bearing capacity of the meter. One's meter ampere can be upgraded or downgraded based on the electrical consumption of the household.

The standard electrical meter has a cycle based system. A full-cycle turns the red reading number indicator which is the subunit. A full rotation of the subunit from 0 to 9, turns the unit. The electrical reading every month is done with a simple calculation -- the present reading is subtracted from the last reading, and the total consumed unit per month is determined. The consumed unit is multiplied by the cost per unit which is determined per amperage of the meter and the category of consumption.