Electricity is an indispensable cost in production. With the rise of industries, calculating electricity bills for production becomes an important issue for businesses. Therefore, How to calculate electricity bill for production is given special attention and research to minimize costs and optimize production activities. In this article, we will learn how to calculate electricity production costs and the factors that affect this cost.

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Components of production electricity costs

Factors affecting production electricity costs

Many factors affect how to calculate electricity bill for production TTTT Global produces electricity bills, however, the main factors include:

  • Time of use: The longer the time spent using machinery, equipment, electrical systems…, the higher the cost of electricity produced.
  • Power consumption: The greater the power consumption, the higher the cost of electricity produced.
  • Electricity price: Electricity price is regulated by the Government and can change over time, so it will directly affect the cost of electricity produced.
  • Equipment utilization efficiency: If equipment utilization efficiency is low, that is, the more energy consumed to produce the same amount of product, the cost of production electricity will increase.
  • Operating norms: Applying accurate operating norms for each type of machinery, equipment, electrical system… is also an important factor to minimize production electricity costs.

Basic cost components

Basic costs include:

  • Costs arising from the use of electricity by equipment and machinery during the production process.
  • Maintenance and repair costs of equipment and machinery to maintain optimal operating performance.
  • Electricity subscription cost: This is a fixed monthly cost, calculated in kw/h unit.

Variable cost components

Variable costs include:

  • Costs vary depending on the level of use of equipment and machinery.
  • Costs increase when problems or failures occur.
  • Costs vary according to peak and normal hours: According to regulations, peak electricity prices are higher than normal electricity prices, so the cost of electricity produced will also increase during this period.

How to calculate electricity bill for production

Step 1: Identify influencing factors

To calculate electricity production costs, it is first necessary to determine the influencing factors as stated above. This will help you have an overview of the cost of electricity produced and from there come up with measures to minimize costs.

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Step 2: Collect data

After determining the influencing factors, you need to collect data on electricity consumption of each machine and equipment during the production process. This data can be obtained from electricity bills or from devices that measure electricity consumption.

Step 3: Calculate basic costs

To calculate the basic cost, you need to know the total product (or production capacity) and the current electricity price. Then apply the following formula:

Total basic cost = Total product x Current electricity price

Step 4: Calculate variable costs

Calculating variable costs will depend on the level of use of each machine and equipment, as well as different conditions (peak hours, normal hours…). To calculate this cost, you need to have data on the operating time of machinery and equipment in different periods of time and apply the corresponding formulas.

Step 5: Summarize costs

Finally, you need to synthesize basic and variable costs to calculate the total cost of electricity produced.

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How to reduce production electricity costs

Adjust the operating mode of machinery and equipment

Instead of operating continuously, you can adjust the operating mode of machinery and equipment to make the most of energy consumption and minimize electricity costs.

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Improve usage efficiency

If the performance of equipment and machinery is not good, you need to check and maintain it regularly to ensure the highest performance during the production process.

Apply correct operating norms

Activity rating is a way to determine the amount of energy required to produce one unit of product. Applying correct operating norms will help you minimize production electricity costs.

Calculating production electricity costs requires careful attention and consideration from businesses to optimize production activities and minimize costs. By identifying influencing factors, collecting data and applying cost reduction measures, businesses can effectively calculate and manage electricity costs. Hopefully this article will help you better understand how to calculate production electricity bills and create suitable solutions for your production activities.

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Company name:

TTTT GLOBAL co Ltd,.

Address: Landmark 4 Building, Vinhomes Central Park, 720A Dien Bien Phu Str, Ward 22, Binh Thanh District, Ho Chi Minh City, Vietnam.

Website: https://ttttglobal.com/en/

Hotline: +84286 2728 334

Email: Info@ttttglobal.com


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