Understand your bill Stay up to date and save money on your energy bill. By understanding what and how your electric company charges you at the end of the month, you can use it smarter and therefore save money. Here were gonna clarify and learn how to measure kW/h. How the electric bill price is calculated? Your electricity provider measure the electricity your house consumes in kW/h (it stands for KiloWatt / Hour), puts a price on that and after knowing how much kW/h you spent they know how much they have to charge you.