Saving money on energy bills

5. How to read your energy bills

The first page of your energy bill will likely be a summary of how much you owe and for what period. It is also likely to detail how you pay for your bills and tell you whether this is based on an actual reading or an estimated one.

Your customer name, address and account number will also be on the first page of your bill along with the contact details of your energy company.

The next pages of you bill will lay out how much energy you have used. Depending on who your energy company is, it might look something like the one below. The example provided may not look the same as yours but it is likely to contain the same information.

We have highlighted the important things to look at on your bill in different colours and will explain them below. It is important that you know where to find these items as this gives you more control over making your bills cheaper.

Example of an Electricity bill

       - based on 3 people sharing a 3 bedroom semi-detached house with economy

         seven (Adapted from a real Atlantic Electric and Gas bill)

1. 16 Aug to 27 Nov = Billing Period

This section will tell you the period where you used the energy. It is important to look at this because you can see if the usage seems fair in line with the amount of time covered by the bill.

2. (E) = Estimated.

Any letter next to your reading will be to tell you how the company acquired it or give more information about the reading in general.

You may find these other letters after a reading:

(A)  = Actual reading obtained by a meter reader

(C)  = Customer reading

(R)  = Final reading from a meter that has now been removed

(N)  = First reading from a new meter

(F)  = Final meter reading when leaving a property, discontinuing the supply or changing supplier

If your reading is estimated, it may well be under or over the amount you have actually used. 

NOTE: We suggest that you take your meter reading every time you get a bill and advise your company of it straightaway.

Companies often over estimate your usage to ensure that they get at least the amount of money owed to them.

It could mean that you have less to pay for that bill which would be important if your budget is stretched at that time.

3. Your Tariff is Economy 7 No Standing Charge = Current Plan

This will tell you what plan you are currently on. It is important that you know this so you can change it if it doesn’t fit to your needs.

4. Standard Day Energy 225 Units at 12.13p each = Cost and amount of units used

Your tariff may offer you a discounted unit price after using a set amount of units, in return for a slightly higher standard unit price. Some tariffs may offer you a cheaper fixed price for every unit you use and no discounted units. This part of the bill should break down how many of each kind of unit you have used and the price you pay for each.

5. VAT at 5.00% = Value Added Tax

VAT for utilities is only charged at 5.00% instead of the 17.50%. This section will tell you how much extra will be added on to the cost of the units you have used.

6. Total Charges £68.75 = Total cost of your bill

This section will tell you how much your bill is before taking into account any money you owe or are owed from previous transactions with the company. It is the amount you have been charged for the energy you have used for the period of time the bill covers.

• Next page: Energy payment options - which one is best for you?
• Previous page: How energy bills are worked out

Guide contents

1. Energy companies
2. Energy plans – what do they mean?
3. How to read your gas and electricity meters
4. How energy bills are worked out
5. How to read your energy bills
6. Energy payment options – which one is best for you?
7. Dual fuel discount
8. What is Economy 7?
9. Switching energy companies
10. Green tips to cut gas and electricity bills
11. Helpful contacts for gas and electricity information

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