Explanations of electricity terms

To get the best deal on your electricity, it helpsto understand some of the key terms used by electricity suppliers in your bill. Here we explain some of them.

Electricity usage and kilowatt-hours (kWh)

This means how much electricity your home uses. It is measured in kilowatt-hours (kWh). They are often called “units” on bills: 1 unit = 1 kWh.

How much electricity you use depends on:

• The size of your home
• How well it keeps in heat and is insulated
• The appliances you use and how efficient they are
• The number of people in your home

A typical Irish household uses 11.5 kWh of electricity per day. One kWh covers 10 minutes in an electric shower or one cycle of your washing machine or dishwasher.

Electricity rate or €/kWh

This is the price charged for each unit of electricity you use. It is measured in euro per kilowatt-hour (€/kWh).

Electricity tariff or plan (see page 10)

Your electricity tariff or plan outlines what you pay for your electricity. It sets:

• The cost per hour for each unit of electricity (kWh)
• Your daily standing charge (how much you pay per day to have the service)
• How long your contract lasts
• Any discounts or special benefits included

Hedging

Hedging is when electricity suppliers buy electricity in advance at fixed prices. This protects customers from sudden price increases on the
global market.

Smart meter

A smart meter gives automatic, accurate readings and allows you to use smart tariffs such as timeof-use. You may already have a smart meter installed in your home. To start using it, you must switch to a smart plan with your supplier.

Shifting your usage

This means using electricity at cheaper times, outside the peak time of 5pm–7pm.

Who’s who in the electricity world?