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How to Calculate your Home Appliances Operating Electricity Costs

Understanding and evaluating the cost of electricity which you use at home is very important to help you keep your electricity bills under control.

The most accurate method of obtaining your home appliances operating cost is to use a power usage meter. These units are available for purchase from approx. $20.

Alternatively, you can use the following steps to calculate the maximum usage for your electric appliances. Consider that not all appliances run at maximum power all the time and have different power settings which would change the energy consumption.

Step Action Electrical appliance
Example for a Hairdryer
1 Obtain your appliances input energy in watts or kilowatts For example Hairdryer label states 1500W
2 If needed change input energy to kilowatts (kW) or megajoules (MJ) Divide 1500W by 1,000 = 1.5kW
3 Review your bill to find your electricity tariff rate. This is the amount of electricity you pay per unit. For example an average peak rate in Victoria is 26 cents per kWh for electricity
4 To find out the hourly operating cost calculate by multiplying the input energy by the electricity tariff rate. 1.5 x 26 = 39 cents per hour
5 To calculate the daily running cost multiply the hourly running cost by the number of hours per day you use the hairdryer. For example If the hairdryer is used for 15 minutes per day: 0.25* x 39 cents = 9.75 cents a day. For a year it would cost (9.75 x 365)/100 = $35.59 a year.
*0.25 = ¼ of 1 hr.

*Tariffs quoted are approximate and subject to change.

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