How to Read Your Electricity Bill and Units

You pay for electricity, but what exactly are you buying? Understanding a few terms helps you spend less and avoid surprises.

What is a unit?

A unit on your meter is one kilowatt-hour (kWh). It is the amount of energy used by a 1,000-watt appliance running for one hour. A kettle or electric iron of about 1,000 watts uses roughly one unit in an hour.

Prepaid and postpaid

• Prepaid meter: you buy a token first, enter it on your meter, and use electricity until the units finish.
• Postpaid meter: you use electricity first and receive a bill later, based on your meter reading or an estimate.

What happens to the money you pay?

When you buy a prepaid token, the amount you pay is not all converted to units. Some of it can go to charges, taxes or earlier debt recorded against your meter. That is why the units you receive can be lower than you expect. Your token receipt usually shows the breakdown.

Tariff bands

Your area is placed in a tariff band depending on how many hours of supply it gets, and the price per unit differs between bands. If your units seem few, check your band and rate with your electricity distribution company.

Estimate how long your units will last

Use a simple method:

1. Find an appliance's power rating in watts (on its label).
2. Multiply by the hours you use it each day.
3. Divide by 1,000 to get units per day.

For example, a 100-watt fan running 10 hours uses about 1 unit a day. Add up your appliances to estimate your daily use, then divide your units by that number to see how many days they will last.

Ways to use fewer units

• Switch off appliances you are not using.
• Use energy-saving bulbs.
• Avoid running heavy items such as irons and heaters longer than needed.
• Unplug chargers when they are not in use.

Keep your meter details safe

Your meter number is needed to buy a token. Double-check it before every purchase, because a wrong number can send your token elsewhere.

When you are ready to buy, create a free QuickPlug account and check the app for the services available.