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How to Read Your Energy Bill

Understand every line item on your gas and electricity bill so you know exactly what you're paying for.

5 min readSave £50–£100/yrUpdated March 2024

Breaking Down Your Bill

Energy bills can be confusing, but understanding each section helps you spot errors and find savings. Here's a line-by-line breakdown of what you'll see.

Account Information

At the top you'll find your account number, supply address, and the billing period. Check the dates match what you expect — billing errors often start here.

Meter Readings

Look for "previous reading" and "current reading". The difference is your usage. Watch for an "E" which means estimated — submit actual readings to ensure accuracy.

Energy Charges

This is the main part of your bill:

  • Unit rate: Price per kWh of energy used
  • Standing charge: Daily fixed fee for having a supply
  • VAT: 5% on domestic energy

Your Tariff Details

Check your tariff name and end date. If you're on a variable tariff, you're likely overpaying. Fixed deals often offer better rates.

Comparison Information

By law, suppliers must show your estimated annual cost and how it compares to their cheapest tariff. Use this to spot potential savings.

Common Bill Errors

  • Estimated readings that are too high
  • Wrong tariff applied after a switch
  • Charges for a previous occupant
  • Incorrect meter serial number

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