Understanding Your UK Energy Bill
Make sense of unit rates, standing charges, VAT, meter details and more. This step-by-step guide explains every line on a typical domestic gas and electricity bill in the United Kingdom and shows practical ways to keep costs down.
Information on this page is general guidance for domestic customers in England, Scotland and Wales. For tailored advice, please contact our team.
What’s on your energy bill
Your energy bill brings together account details, meter information, your tariff and how your charges were calculated. Here’s what to look for:
- Account details: Your name, supply address, account number, bill date and billing period.
- Meter details: Meter serial number, meter type (smart, traditional, Economy 7/10), and reading types (A = actual, E = estimated, C = customer, S = smart).
- Supply numbers: Electricity MPAN (also called the ‘S number’) and gas MPRN. These uniquely identify your supplies.
- Tariff information: Tariff name, whether it’s a fixed or variable tariff, standing charge (p/day) and unit rate(s) (p/kWh). For multi-rate tariffs you’ll see separate day/night or peak/off-peak rates.
- Usage: Your energy consumption in kWh for the period, including previous and latest meter readings.
- Charges and adjustments: Line-by-line breakdown of electricity and gas charges, VAT at 5% (domestic), and any credits, refunds or government schemes listed on the bill period.
- Balance and payment details: What you owe or the credit on your account, your payment method (e.g., Direct Debit) and the date the payment will be taken.
Charges explained (electricity and gas)
Domestic bills generally include two core costs: the standing charge and the unit rate(s). Here’s how they work.
Standing charge
A daily fixed charge that covers the cost of maintaining your connection, metering, and a share of regulated network and policy costs. You pay it for each day in the billing period, even if you use no energy.
Unit rate(s)
The price you pay for the energy you use, measured in kilowatt hours (kWh). Electricity is billed directly per kWh; gas needs a conversion from meter units to kWh.
Electricity example
- Usage: 350 kWh in the period
- Unit rate: 28.00 p/kWh (example)
- Standing charge: 52.00 p/day (example), 30 days
Cost = 350 kWh × 28.00p + 30 days × 52.00p = £98.00 + £15.60 = £113.60 (excl. VAT)
Gas example and the kWh conversion
Gas meters measure volume (m3 or ft3). Suppliers convert this to kWh using a standard formula:
kWh = Volume used × Correction Factor × Calorific Value ÷ 3.6 Typical figures (for guidance only): • Correction Factor ˜ 1.02264 • Calorific Value usually between 37 and 43 MJ/m³ (varies)
- Volume used: 50 m3
- Correction Factor: 1.02264
- Calorific Value: 39.5 MJ/m3
kWh ˜ 50 × 1.02264 × 39.5 ÷ 3.6 ˜ 561.1 kWh
- Unit rate: 7.50 p/kWh (example)
- Standing charge: 30.00 p/day (example), 30 days
Cost = 561.1 kWh × 7.50p + 30 × 30.00p = £42.58 + £9.00 = £51.58 (excl. VAT)
VAT and other items
- VAT: Domestic energy is charged at 5% VAT, applied after your net charges are calculated.
- Environmental and network costs: Included within your unit rates/standing charges (they are not usually itemised separately on domestic bills).
- Climate Change Levy: Not charged to domestic customers.
Figures above are examples only. Your actual rates, standing charges and usage will differ.
Readings, meters and bill accuracy
How your readings are obtained affects how accurate your bill is:
- A – Actual: Taken by your supplier or a meter reader.
- S – Smart: Collected automatically from a smart meter.
- C – Customer: Submitted by you.
- E – Estimated: Calculated based on your past usage when an actual reading isn’t available.
Estimated bills are corrected once actual or smart readings are received. To keep bills accurate, provide regular readings if you don’t have a smart meter, or ask us about upgrading.
Economy 7 and multi-rate meters
If you have Economy 7 (or Economy 10), your meter records separate day and night usage. Off-peak hours vary by region and meter set-up. Always enter both readings when submitting readings manually.
Tariffs, unit rates and standing charges
Your tariff determines how you’re charged for energy:
- Standard Variable Tariff (SVT): Unit rates and standing charges can change, typically in line with market conditions and Ofgem regulations.
- Fixed tariff: Your unit rate(s) and standing charge are fixed for a set term. Your monthly payments can still change to reflect actual usage.
- Time-of-use tariffs: With a smart meter, you may have peak/off-peak rates or dynamic pricing windows that reward shifting usage to off-peak times.
If you’re unsure which tariff you’re on, check your bill’s tariff name or contact us. Switching tariff may be possible without changing supplier.
Why did my price change?
Unit rates and standing charges can change when your fixed term ends, if you move to an SVT, or due to regulated price updates. You’ll be notified in advance of changes. If you’re eligible for a different tariff that suits your usage, we’ll help you review your options.
Ask us to review your tariffMPAN & MPRN: finding your supply numbers
Your supply numbers help identify the exact property and meter point:
- MPAN (Electricity): The Meter Point Administration Number, sometimes shown in a multi-line box starting with an S. Found on your bill or obtained from your Distribution Network Operator.
- MPRN (Gas): The Meter Point Reference Number. Found on your bill or via the Find My Supplier service for gas.
Keep these numbers handy when moving home or discussing technical issues with your supplier.
Payments, credits and billing cycles
Common payment methods and how they appear on your bill:
- Monthly Direct Debit: A fixed monthly amount that aims to spread annual costs evenly. Your account may show a credit in summer and a debit in winter; reviews adjust payments to match expected usage.
- On receipt of bill: You pay the full amount after each bill is issued.
- Prepayment meter: You top up before using energy. Your statement shows top-ups, standing charges and usage deductions.
Check the bill for your billing period, issue date, and any balance carried forward. If something looks wrong, contact us with a recent reading so we can check accuracy.
Back-billing and accurate billing
Suppliers follow industry rules designed to promote accurate billing. In certain circumstances, customers should not be charged for energy used more than 12 months ago if the supplier is at fault for not billing correctly. If you receive a catch-up bill, get in touch so we can investigate and apply the appropriate rules.
Ways to lower your bill
These proven steps can help reduce your energy costs without sacrificing comfort:
- Know your usage: Check your kWh on every bill and compare to the same period last year. Smart meters offer live insights and automated readings.
- Optimise your tariff: If you can shift usage to off-peak hours, a multi-rate or time-of-use tariff could help.
- Heat efficiently: Lowering your thermostat by 1°C, using programmer and thermostatic radiator valves, and bleeding radiators can cut heating costs.
- Insulation and drafts: Loft and cavity wall insulation, draft-proofing and lagging hot water pipes reduce heat loss.
- Hot water: Fit an efficient showerhead, fix dripping taps and insulate your hot water cylinder.
- Appliances: Choose efficient models (high energy ratings), wash at lower temperatures and avoid standby by using smart plugs.
- Lighting: Replace halogens with LEDs and make the most of natural light.
Support if you’re struggling to pay
If you’re worried about bills, contact us as soon as possible. We’ll work with you to find support and agree a manageable plan.
- Payment plans: Spread costs over time with an affordable schedule.
- Prepayment support: Ask about emergency and friendly-hours credit if applicable to your meter.
- Warm Home Discount: If eligible, you may receive a rebate each winter via the government scheme.
- Winter Fuel Payment and Cold Weather Payments: Government support for qualifying households.
- Priority Services Register (PSR): Free extra help for customers in vulnerable situations, including accessible communications and priority support in emergencies.
For independent guidance you can also visit Ofgem or GOV.UK.
Spotting and fixing common bill issues
- Unexpectedly high bill: Check for estimated readings, longer billing period than usual, or seasonal changes. Provide an up-to-date reading and we’ll re-bill if needed.
- Wrong meter or address: Compare the meter serial number on your meter with what’s shown on the bill; contact us if they don’t match.
- Economy 7 billed incorrectly: Ensure day/night readings weren’t swapped. Submit both readings labelled clearly.
- Moving home: Take final and opening photos of your meter readings, note the date/time and keep copies.
Frequently asked questions
Why has my Direct Debit changed?
We review your payments periodically against actual and projected usage so your account doesn’t build up a large debit or credit. If prices or your consumption change, your monthly amount may be updated. You’ll be notified ahead of any change.
What is the Energy Price Cap?
The Ofgem price cap sets a limit on what suppliers can charge per unit of energy and the standing charge for customers on default (standard variable) tariffs. It’s not a cap on your total bill – your final cost depends on how much you use.
Can I change my billing date?
In many cases, yes. Contact us and we’ll let you know what’s possible with your account and payment method.
How do I convert gas units to kWh?
Use: kWh = Volume × Correction Factor × Calorific Value ÷ 3.6. Your bill shows the actual factors used for the period.
Do domestic customers pay VAT?
Yes, domestic energy is charged at 5% VAT, applied to your total after standing charges and unit rates are calculated.
What should I do if I can’t afford my bill?
Contact us as early as possible. We’ll discuss support options such as payment plans and available schemes, and can check if you’re eligible for the Priority Services Register.
Guidance provided is general and may not reflect your specific account or tariff. Always refer to your bill for exact rates and charges or contact our team for personalised support.