What does electricity cost? Is electricity expensive? This simple question is actually not so simple to answer because expensive is a relative term. Most calculations and comparisons try and focus on a tangible number, such as the Levelized Cost of Energy (LCOE), and use that as a basis for comparison. This paper discusses such numbers in more detail, and shows how even a comparator number may not be sufficient for making comparisons. The first clarification is are we comparing the cost or the price? The price would stem from the cost only when we are following a costs plus regime, which is common for regulated commodities or services. In such a case, we would definitely want to know the true costs. At the other extreme, one could have a purely market mechanism, where one would not be able to know or care what is the cost for the supplier – we would only be able to see prices. If, and this is a big if, we have a competitive market, the final prices would reflect only a modest profit margin for the suppliers above and beyond their costs. Consumers pay a retail tariff for consumption of electricity, and this is based on the tariffs from the electricity distribution company.