How to read your energy bill

The unit rate and the standing charge

Most energy bills split what you pay into two parts. The unit rate is the price you pay for each unit of energy you actually use, and the standing charge is a fixed daily amount that applies however much — or little — you use.

Gas and electricity each have their own unit rate and standing charge, so a dual-fuel bill will usually show two of each. Both figures normally appear in the tariff details section of the bill as well as in the calculation itself.

• The unit rate — the price for each kilowatt hour of energy used.
• The standing charge — a daily charge that applies even on days you use no energy.
• Separate figures for gas and for electricity, if both are on the same bill.

What a kWh is

Energy use on a bill is measured in kilowatt hours, usually written as kWh — the same unit for both gas and electricity. The bill multiplies the kilowatt hours you have used by your unit rate to reach the energy charge for the period.

Electricity meters record kilowatt hours directly. Gas meters typically record the volume of gas used, and the bill shows a conversion calculation that turns that volume into kilowatt hours before the unit rate is applied.

Estimated and actual meter readings

The charges on the bill are based on meter readings, and the bill normally marks whether each reading is actual or estimated. An actual reading comes from the meter itself — read by you, a meter reader, or sent automatically by a smart meter — while an estimated reading is the supplier’s calculation of what the meter probably shows, based on past usage.

Estimated readings can drift away from what you have really used, in either direction. The markers next to each reading tell you which kind it is, so you can see how much of the bill rests on estimates.

• A letter or label beside each reading, showing whether it is actual, estimated, or one you supplied.
• The dates the readings were taken, which define the period the bill covers.
• Whether a smart meter is sending readings automatically.

How your payment method appears

Bills normally state how you pay — for example by monthly direct debit, on receipt of each bill, or through a prepayment meter. The way the figures are presented differs between these methods.

With a fixed monthly direct debit, the bill usually shows an account balance alongside the charges: the monthly payments and the actual cost of your energy rarely match exactly, so the account drifts into credit or debit over time. The balance line shows where that stands.

Where the tariff name and end date appear

Somewhere on the bill — often in a box headed something like "about your tariff" — you will find the name of the tariff you are on, whether it is fixed or variable, and, for a fixed tariff, the date the fixed period ends.

The same section typically notes whether an early-exit fee applies during the fixed period. Knowing the tariff name and end date helps you understand what arrangement you are on now and when it changes.

Other details the bill usually shows

Beyond the charges themselves, bills carry a set of reference details: your account number, the billing period, and the long supply numbers that identify your property’s gas and electricity connections. These identifiers are what a supplier will ask for if you contact them about the bill.

Many bills also show your usage compared with an earlier period, which gives a rough sense of whether your consumption is rising or falling. Reading one bill end to end makes every later bill quicker to follow.

A note on this guide

This guide is general information to help you understand your own contracts. It is not financial advice or a recommendation, and it does not rank or endorse any provider. Every decision about your contracts remains with you. To see how PEAMO surfaces your contracts and renewals, read How PEAMO works.