What is a Kilowatt Hour Anyway? Let us Explain

The kilowatt-hour. You've probably seen this guy hanging around ever since you started paying your own electricity bills. It's the unit used to define your electricity contract and measure your energy consumption. But what is it exactly?

What is a Kilowatt-Hour?

The kilowatt (kW) is how much electricity you use at a specific point in time. The kilowatt-hour (kWh) is how much electricity you use over a period of time. Unless you're an engineer or work for a retail energy provider (REP), that might not mean anything to you. And when you're shopping for a new energy plan, you'll have a hard time finding a more detailed explanation of what the kilowatt-hour truly is. Kilowatt-hours are hard to understand, and some REP's take advantage of that fact.

You see, when you sign up for electricity, you pick a contract that charges a certain amount of money for every kWh you use. Think of your energy usage as your morning commute. When you sign up for a plan that gives you a lower rate for lower use of energy, it's like asking you to drive your car on a certain route to work.

There's a Catch!

But here's the catch: Most REPs will include restrictions. Therefore, you get charged if you use too many kWhs AND if you use too few. So that's like asking you to drive on a specific route at a constant speed of 15 mph. Are you confident you can keep your speed constant the entire drive? Similar to how your car might speed up or slow down depending on traffic. You're not always going to have the same usage every day or every month (especially in the hot Texas summers). So why choose a plan that doesn't meet your energy needs?

At Energy Ogre, we believe that you need to have a plan that's optimized for you. Likewise, we take into account your kilowatt-hour usage and any seasonal changes. We know that everyone is different and everyone's energy usage is different, too. When you choose Energy Ogre, we help you find the plan that gives you the best rate based on your own usage. So it's okay if you don't understand the kilowatt-hour because we understand it for you.