Understanding Energy Bills

Understanding how your energy bill is calculated can help you manage your household budget, identify potential savings, and ensure you are only paying for the energy you use.

Whether you pay by Direct Debit, cash, card or prepayment meter, it is important to know what information appears on your bill and what it means.

An energy bill shows how much you have been charged for the gas and electricity used in your home.

Your bill may include:

• Electricity charges.
• Gas charges.
• Standing charges.
• VAT.
• Previous payments made.
• Any outstanding balance.

A standing charge is a daily fee paid to your energy supplier regardless of how much energy you use.

This charge helps cover the cost of:

• Maintaining energy networks.
• Meter services.
• Customer support.
• Billing and administration.

You pay the standing charge even if you use little or no energy during a billing period.

A unit rate is the amount you pay for each unit of energy you use.

Energy use is measured in:

• Kilowatt hours (kWh) for electricity.
• Kilowatt hours (kWh) for gas (after meter readings have been converted).

The more energy you use, the higher this part of your bill will be.

Your energy supplier calculates your bill using:

The daily charge applied to your account.

The amount of gas and electricity used during the billing period.

A reduced rate of VAT is typically applied to domestic energy supplies.

The total bill is usually:

Standing Charges + Energy Used + VAT = Total Bill

Your bill may be based on:

• You.
• Your supplier.
• A smart meter.

Actual readings provide the most accurate bills.

If no meter reading is available, your supplier may estimate your usage.

Estimated bills can sometimes be inaccurate and may lead to:

• Unexpected charges.
• Credit balances.
• Large catch-up bills.

Providing regular meter readings can help avoid this.

A smart meter automatically sends meter readings to your energy supplier.

Benefits may include:

• More accurate billing.
• Reduced estimated bills.
• Easier tracking of energy usage.
• Better understanding of household consumption.

• Your unit rate.
• Your standing charge.
• How your energy costs are calculated.

Energy bills can increase for several reasons, including:

• Higher energy prices.
• Increased household usage.
• Colder weather.
• More people living in the property.
• Estimated bills being corrected.
• Changes to your tariff.

If you believe your bill is incorrect:

• Check your meter reading.
• Compare it with the reading shown on the bill.
• Review previous bills.
• Contact your supplier.

Keep copies of:

• Bills.
• Meter readings.
• Emails and letters.

This information can help resolve any disputes more quickly.

If you're struggling to pay:

Contact Your Supplier

They may be able to:

• Agree a repayment plan.
• Review your payments.
• Provide information about support schemes.
• Check For Financial Support

You may be entitled to:

• Warm Home Discount.
• Household Support Fund.
• Winter Fuel Payment.
• Cold Weather Payments.
• Energy supplier hardship funds.
• Seek Advice

• Understand your energy bills.
• Access support with energy costs.
• Check your entitlement to benefits and grants.
• Create a realistic household budget.
• Improve your financial wellbeing.

Contact our team for free, confidential advice and support.