How to Read Your Energy Bill: Unit Rates, Standing Charges, Estimated Readings and Your Balance

A UK energy bill charges you two ways for each fuel: a unit rate for every kilowatt hour (kWh) you use, and a standing charge for every day you are supplied, whether or not you use anything. VAT at 5% is added. The usage figure comes from meter readings, which may be actual or estimated, and the balance shows whether your direct debit has paid more or less than you have used.

The parts of the bill

• Tariff name and end date. What you are on, and when any fixed term ends.
• Meter readings. The opening and closing readings for the period, each marked as actual, customer-provided or estimated.
• Usage in kWh. The difference between the readings. Gas readings are converted from cubic metres to kWh on the bill.
• Unit rate. Pence per kWh, multiplied by your usage.
• Standing charge. Pence per day, multiplied by the days in the period.
• VAT. 5% on household energy.
• Balance. In credit if you have paid more than you used, in debit if less.
• Annual estimate. What the supplier expects a year to cost you on this tariff.

Estimated or actual?

If a reading is marked estimated, the supplier has guessed your use. Estimates can be too high or too low for months before a real reading corrects them. Send your own readings, with a photo, whenever a bill is estimated.

In credit or in debit

Most people pay a fixed monthly direct debit set from an estimate of their annual use. Over a year the account drifts into credit or debit. You can ask the supplier to review the payment, and to refund a large credit.

The reference numbers you will need

• Account number, for anything you ask the supplier.
• MPAN, the electricity supply number, usually shown in a box of numbers on the bill.
• MPRN, the gas supply number.
• The meter serial numbers, which help when a reading does not match.

How Wisemium helps

Upload your energy bill to Wisemium and it reads the supplier, tariff, price and fixed term end date for you to confirm, then keeps them on record. The end date is shown as needing attention as it comes up, and when there is something worth acting on Wisemium takes you through its energy partner journey. It does not list energy tariffs itself.