How to read your energy bills
National Energy Action is the national charity helping you with your energy bills. This leaflet helps you understand the gas and electricity bills you get from your supplier.
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Your energy bill
Energy is measured in units known as kilowatt hours or kWh. Energy suppliers send bills to show how many kWh you’ve used and your total balance.
Every three months Ofgem sets the price cap level – what a unit of gas and electrictiy will cost. You may pay more or less than this if you have fixed your tariff with your energy supplier.
Ofgem estimates a typical household uses 3,100kWh a year of gas and 12,500kWh of electricity. But if you live in an older property that’s not energy efficient, have a larger than average household or have high energy needs then you will use more than average.
Some households are all-electric. Others don’t have a gas supply and have to rely on alternative energy such as oil or LPG gas. People typically use more energy in winter as that’s when they need to use heating.
Tip:
The recommended temperature for a healthy home is between 18°C and 21°C.
Prepayment or credit
Every energy supplier will produce energy bills and there is no standard layout. Our sample bill in this leaflet contains the information that will be on your bill but it might not be in the same place.
Some energy suppliers send their bills online. There are different ways to pay for energy.
Prepayment meter customers pay for energy upfront before they use it. It’s like a ‘pay as you go’ phone. This means you will have higher bills in winter than summer so you need to budget carefully. Some people prefer this way of paying as you can keep a careful eye on what you use and set budgets. If you can’t get to the shop or run out of credit, you can claim £5 emergency credit on both your electricity and gas meters so you don’t lose supply. You’ll have to pay this back when you top up next.
Credit meter customers pay by direct debit or when they receive the bill. If you pay by Direct Debit it’s usually based on your previous usage. The total amount for the year is then divided by 12 to give 12 equal amounts. This means you’ll overpay in the summer but underpay in winter. There are often a wider range of tariffs to choose from but it can be easier to go into debt or pay for more than you use. You need to submit regular meter readings. Do this yourself, with a smart meter or your supplier can send a meter reader.
Going smart
Smart meters work with both prepayment and credit meters and come with a small in-home display. This display shows you how much energy you’re using in real-time, how much money you’ve spent in the day, and how much credit you have left on your prepayment meter. Some people don’t like to use the in-home display and that’s ok. Your smart meter will still work. With a smart meter you may never have to submit a meter reading again.
How often?
Prepayment customers can top up in a shop or on their phones if they have a smart meter, whenever they choose.
Direct Debit customers have their energy use worked out over the year and they make equal payments.
Standard credit customers pay for what they’ve used when they’ve received their bill.
Direct Debit and Standard Credit customers can set up their payment schedule. Some pay monthly or quarterly (every three months.)
However you pay, you can choose your tariff – a plan for how much you’ll pay for your gas or electricity. A fixed tariff fixes the price of a unit of energy for a defined time period.
Call charges
Calling advice lines and other services may incur call charges. 0800 and 0808 numbers are free from landlines and mobiles. Standard rates apply for 01, 02 and 03 numbers (typically 9p-13p per minute from landlines and 3p-55p from mobiles depending on your network), however, they are usually included in free call packages. See more information at www.gov.uk/call-chargesbalance.
Your bill: part 1
- Your ACCOUNT NUMBER, sometimes CUSTOMER REFERENCE NUMBER, is unique to you. It identifies your account details when you contact your supplier.
- A METER POINT REFERENCE NUMBER or MPRN is attached to each UK home on the mains gas supply. The ELECTRICITY SUPPLY NUMBER provides a unique identity reference number for your electricity meter.
- The CONTACT DETAILS of your gas supplier: phone number and opening hours.
- EMERGENCY CONTACT DETAILS for out of hours.
- DATE your bill was issued by your supplier.
- The bill will be ADDRESSED to the person whose name is on the account. You can have more than one named person on your account.
- The PERIOD OF TIME you have been charged for the energy you’ve used.
- The AMOUNT that was left on your account after your previous payment. This could be a credit, a debit or a zero balance, depending on how you pay. If your account is in credit, that shows you have overpaid your energy supplier. If you pay the same every month you might get into credit in the summer months. Some people do this so they have credit ready for winter. If your account is in debit, that’s how much you owe your supplier. Try and give a monthly meter reading to your supplier or have a smart meter, as you can run up a debt without realising.
- The PAYMENTS YOU HAVE MADE since your last bill.
- The TOTAL COST of the energy you’ve used (or estimated to have used) for the billing period. If you are a Direct Debit customer, this can go up and down during the year. If you pay each bill in full, it usually shows a zero balance, then the full amount you owe for the current billing period.
- Your NEW ACCOUNT BALANCE or AMOUNT OWED will take into account any existing credit you have on your account. It shows as a credit, a debit or zero balance.
- If you pay by DIRECT DEBIT, you pay a fixed amount each month over a set time, usually a year. If these payments are too high, you can build up a large credit. If your payments are too low, you can build up a debt. Your supplier can increase or decrease your monthly payments to match your usage.
- The PERSONAL PROJECTION is an estimate of your energy use over a set time frame, usually a year. This helps your supplier to set your payment plan if you’re a Direct Debit customer, or can help you budget if you pay quarterly. Remember you use more energy in winter.
- Suppliers now have to highlight cheaper TARIFF options. Some will highlight other suppliers’ deals. You can use an accredited switching site to view the best deals in your area.
Your bill: part 2
15. Your PREVIOUS reading is the meter reading that has been used as the starting point for this billing period.
16. Your LATEST reading is the meter reading. This is used as the end point for this billing period. It is used to generate your current bill.
17. ‘E’ readings are ESTIMATED when your supplier doesn’t have an ACTUAL or ‘A’ reading. Some suppliers may show readings you’ve provided as CUSTOMER, ‘C’ or YOUR reading. You need to give a meter reading for an accurate bill.
18. Information on how DIRECT DEBIT plans are worked out.
19. UNITS USED is the amount of gas you have used during the set billing period. It is calculated by taking your PREVIOUS reading and subtracting it from the LATEST reading.
20. For gas only, your meter can be METRIC, showing readings in cubic meters (m³) or IMPERIAL, showing readings in cubic feet (ft³). This calculator shows how to convert.
21. kWh-rate is the amount you are paying for your energy. Your tariff may be FIXED. This will stay the same for your contract. Or it may be STANDARD so the cost changes with the price cap.
22. STANDING CHARGE is a fixed cost for providing your energy. It includes the cost of keeping your home connected to the network. There are tariffs with no standing charges on the first few units, but the unit rate is higher.
23. The CHARGE is the amount you need to pay, minus VAT, which is added to the total cost at a rate of 5%. If the VAT is higher than 5% you may be on a commercial rate so contact your supplier.
24. How you pay for your gas and the amount you pay is called a TARIFF. There are many different tariffs to choose from offering different payment options, discounts and terms and conditions. It’s worth looking to see if there is a better tariff for you. There may be a cancellation fee if you switch tariffs or suppliers.
25. Suppliers each have a PRIORITY SERVICES REGISTER which offers free support to those with extra needs. It is especially important for households whose health could be affected by a power cut or gas supply interruption. Contact your supplier or go to www.thepsr.co.uk.
Important initials
E = Estimated. This is not the energy you’ve used. It’s based on guesswork. Give a meter reading to get an accurate bill.
Cr = credit. This means your energy supplier owes you money. It can be worth keeping some credit with your supplier for winter.
Db = debit or debt. This means you owe your supplier money.
Glossary
Actual bill – a bill generated using actual meter readings either from a smart meter or provided by the user or a meter reader.
Dial meter – an old-style type of meter that has clock faces reading left to right. Electric has five digits to read, and gas has four.
Economy 7 – a tariff that charges the user two different unit rates. Seven cheaper off-peak hours overnight and 17 more expensive on-peak hours in the day. You will have two readings to take.
Estimated bills – a bill generated when an actual meter read is not possible. The supplier estimates the
reading based on average previous usage and time of year.
Imperial meter – measures gas usage in cubic feet or ft³.
In-home display – a small handheld device that comes with a smart meter. You can use it to view energy
usage in kWhs, pounds and pence and set budgets.
kWh – stands for kilowatt hour and is measurement of how much energy you use.
Metric meter – measures gas usage in cubic meters or m³.
Prepayment electric key – lets you ‘top up’ your electric traditional prepayment meter at a shop. Plug the key into the meter and the topup is added to the credit balance.
Prepayment gas card – lets you ‘top up’ your gas traditional prepayment meter at a shop. Plug the card into the meter and the topup is added to the credit balance.
Prepayment meter – a meter that needs to be ‘topped up’ before you use it either at a shop with a key or card, or online for smart prepayment meters.
Priority Services Register – provides support for vulnerable customers. Go to www.thepsr.co.uk or your supplier.
Smart meter – a meter that sends accurate readings to your supplier automatically. Your bills will be accurate, not estimated.
Smart prepayment top-up cards – allows you to ‘top up’ your smart prepayment meter at the shop. The credit should be automatically added to the meter.
Traditional meter – a meter that is non-smart. You must provide a reading to your supplier or have a meter reader do it on your behalf.