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Regulatory environment in the EU already mandates public transport providers (PTP) to detail their cost accounting to the level of each line they operate. Models used, however, fail to utilise the level of precision state of the art technology would allow for; therefore, state-owned providers become uncompetitive. Implementing new technologies such as electric buses have high investment costs; thus, reconsidering the cost structure of an operator is essential. The aim of this paper is to introduce an innovative cost calculation method for battery electric bus operation. The novelty of the model is its foundation on telemetric data generated by sensors hosted in electric buses and the consequent use of marginal consumption costs instead of averages based on aggregations. The model introduced focuses on the cost of energy consumption, examines influencing factors, such as the effect of meteorological externalities on auxiliary systems, and considers driving dynamics. Nonetheless, fix costs such as amortisation and labour costs are also accounted for to give a complete picture of per passenger numbers. The model developed was applied as a case study to prove its applicability. We found that the climbed elevation positively correlates, while the number of stops served at a given distance negatively correlates with the increase in consumption. The model is better suited for improving the operative competitiveness of PTPs rather than as a tool for regulatory compliance.