When current flows in a resistance, heat is produced because friction between the moving free electrons and the atoms obstructs the path of electron flow. The heat is evidence that power is used in producing current. This is how a fuse opens, as heat resulting from excessive current melts the metal link in the fuse.
The power is generated by the source of applied voltage and consumed in the resistance in the form of heat. As much power as the resistance dissipates in heat must be supplied by the voltage source; otherwise, it cannot maintain the potential difference required to produce the current.
Any one of the three formulas can be used to calculate the power dissipated in a resistance. The one to be used is just a matter of convenience, depending on which factors are known.
