Electricity - Glossary
Kilowatt-hour (kWh)
The unit of electrical energy. One kilowatt-hour equals one hour of use of a 1,000-watt appliance.
The kilowatt-hour (kWh) is the basic unit of electrical energy and is used to measure and bill consumption. One kilowatt-hour equals the energy a 1,000-watt appliance uses in one hour. For example, a 100-watt bulb consumes 1 kWh in ten hours.
In a household the price per kilowatt-hour consists of the energy price, the transmission charge, the electricity tax and VAT. In 2026 the total price is typically 10-20 cents/kWh depending on the contract and network company. A Finnish household consumes on average about 5,000 kWh of electricity per year.
Understanding kilowatt-hours helps you compare contracts and read the electricity bill. For example, the margin in a spot-priced contract is given in cents/kWh, so the impact of margin differences can be calculated by multiplying the difference by the annual consumption.
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Related concepts
Electricity consumption
The amount of electrical energy used by a household or business, measured in kilowatt-hours (kWh).
Electricity tax
An excise tax levied by the state on electricity. In Finland the rate is 2.253 cents/kWh (tax class I, households).
Electricity transmission charge
The fee charged by the network company for transmitting electricity from the power plant to your home. The network company cannot be chosen.
Frequently asked questions
How much does one kilowatt-hour cost?
The total price (energy + transmission + taxes) is typically 10-20 cents/kWh. The energy component alone is 3-8 cents/kWh on a spot-priced contract and 6-10 cents/kWh on a fixed contract.
How do I calculate how many kWh an appliance uses?
Multiply the appliance's power (watts) by its run time (hours) and divide by 1,000. Example: a 2,000 W vacuum cleaner × 0.5 h = 1 kWh.
What is the difference between kW and kWh?
kW (kilowatt) is a unit of power - how much electricity an appliance draws at a given moment. kWh (kilowatt-hour) is a unit of energy - how much electricity it uses over a period of time.