Rank: Forum user 
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In a simple circuit if the current that comes in through the live line goes back through the neutral line, then on what basis do utility companies bill us?
It sounds very basic, but I'm not able to find a satisfactory answer.
Any help!
P
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Rank: Super forum user
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Is it not 'residual current' passes back through the neutral, with the amount used being calculated?
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Rank: Super forum user
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Rank: Super forum user
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The current is the same everywhere. The number of electrons entering the premises is equal to the number that leaves it.
There is, however, a considerable difference in protential between the incoming and outgoing cable. That difference in potential, multiplied by the current, gives the power consumed.
You are actually charged for the energy you use, not the power and the energy is found by multiplying the power by the time.
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Rank: Super forum user
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