Glossary

Cost per kWh

Cost per kWh is the effective price paid for each unit of electricity consumed, calculated by dividing total cost by total consumption over a period.

Definition

Cost per kWh represents the effective average price paid per unit of electricity, calculated by dividing total billed cost (including standing charges and levies) by total kWh consumed. It's a useful normalised metric for comparing cost efficiency across sites, tariffs, or time periods, since it accounts for more than just the headline unit rate.

Why It Matters

Effective cost per kWh can differ meaningfully from a tariff's advertised unit rate once standing charges and levies are factored in, making it a more accurate metric for cross-site or cross-supplier cost comparison.

How ecolyptus Helps

ecolyptus calculates effective cost per kWh per site, supporting accurate cost benchmarking beyond the headline tariff rate.