Electricity bill is based on the energy consumed, remember this (energy=power*time). U must have seen the power ratings of the appliances in terms of kilo watts(KW)(this is a unit of power).Based on how long you operate the appliance u record the time.
The energy consumed for a particular time =(amount of KW (or) W)*(time for which it is operated). The charges then are levied as follows:-
( 1 kwh( h here is hours) = 1 unit)