Energy Guides

How to figure out your energy bill

Wednesday 06 October 2010

By Dominic Welling

dominic.welling@consumerchoices.co.uk

Energy bills can be difficult to interpret and understand, but it’s vital you can use them to discover how much energy you use and exactly how much you’re paying for it.

This is a typical energy bill –it’s a sample from British Gas, but it is similar to ones from other companies. All bills vary slightly in how they are laid out, but all should contain the following information.

First page

1. Name and Address- On the front of the bill will be your address. Make sure this information is completely accurate and update your supplier if you need to.

2. Energy Supplier - here you will find the name of your energy provider and its contact details.

3. Customer Reference Number - This is how the energy company will identify you and access all your details. Make sure you quote this number whenever you contact the provider. However, do not confuse this with your Meter Number (see below).

4. Amount Owed and Deadline Date - Your energy supplier should clearly tell you how much you owe them and when they expect to be paid.

5. Billing Period - Here you will be told the date the bill was sent out and the period that it covers.

6. Name of Tariff - This is important as you need to know the name and what sort of tariff you are on if you are looking to compare energy deals and see what else is out there.

7. Previous Bill and Summary - Here you are given snapshot details about your previous bill and what you paid, as well as a summary of how much you owe this time (including any discounts deducted and VAT added.)

8. Payment Options - At the bottom of page one you are given a list of how you can pay your energy bill. This includes credit or debit card, SMS, Internet or phone banking, At the Post Office, in cash at a PayPoint, at any bank or by post.

Page Two

1. Meter Number, Readings, and Calculations - In this box you will find the most important information.

• Your meter number which will help you identify your meter in your building and submit the correct readings to your supplier.
• It will show your latest meter reading and the previous one, and tell you whether this information is “actual” or “estimated”.
• It will then tell you how much energy you have used by working out the difference between the two figures
• This figure will be shown in kilowatt hours or kWh - your supplier will charge you a certain amount per kilowatt hour
• If you pay a standing charge - which covers things like meter readings and the cost of keeping you connected to the network - you’ll pay a single rate
• If you don’t then you will pay a higher price for a given number of energy units and then a lower rate thereafter.

2. Consumption Comparisons -

• A graph which should illustrate how much energy you have been using.
• You will see your current usage compared with your usage for the same period a year earlier
• Based on this information, your supplier will also estimate how much energy you are likely to use over the next 12 months and how much it is likely to cost.

3. Further Contact Details - On your bill you should be given a list of useful numbers to call for example, in case of an emergency or in case you need to make a complaint.

4. Giro Slip - Use this to pay your bill at the Post Office or bank.

Other things to know about energy bills

• Direct Debit - if you pay your bills by direct debit you will get a discount from the supplier because it means your account is easier for them to deal with.
• Online bills - With online bills you can avoid estimated bills by letting your supplier know your meter readings on a regular basis.
• Annual statements - from December all bills will include an annual statement. Energy suppliers will be required to tell you exactly how much energy you have used over the year, what it has cost, and (provided they continue with the same tariff) how much they are likely to pay over the next year. Suppliers will also be required to alert customers to any discounts and to prompt them to switch to a cheaper energy tariff or payment method if one is available.