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How to Read Your Energy Bill | Understanding Bills with Resooma

By Luke Ellis.
Last Updated 31 Mar 2022
- minute read
How to read your energy bill

If your energy bill has arrived and you aren’t sure what all the numbers on it mean then don’t worry, you aren’t alone. Given that gas and electricity bills contain a lot of information, making sense of it all can be a little confusing. With that being said, it’s still worth taking the time to understand your bills, as this is an important step in controlling your energy usage to start making household savings. 

In this article, we’ve explained how to read your energy bill by listing all the information you can expect to find on it. We’ve also provided a sample of what this bill will roughly look like. Say goodbye to bills confusion!


What Bill Will You Receive?

The exact type of bill you receive will depend on your energy payment method. Those who pay by direct debit will get a statement of what they’ve already paid, whereas those who don’t will get a bill with a list of outstanding payments. 

When there’s a switchover of tenancies, the energy provider will send a letter to the property for the new occupants to get set up. After that, you’ll continue to receive bills or statements, depending on how you pay.

If you pay on receipt on the bill then you’ll get this quarterly or monthly. When paying by direct debit, you’ll receive a statement every 3, 6 or 12 months.

If your gas and electricity come from the same supplier then these should be included on one energy bill – ‘your gas and electricity bill’. If you have a separate supplier for gas and electricity then you’ll receive two separate bills.

Your energy bill will usually include contact details on the final page or in the final section. If you’re looking for any further clarity, then we’d recommend getting directly in touch to chase up any queries you may have. Your supplier should list an email address and telephone number.


What’s on Your Gas or Electricity (Energy) Bill?

Ofgem – the UK’s energy regulator – states that energy suppliers need to make their energy bills simple and engaging. The exact amount of information will depend on your supplier, but you can expect to find the following things as a minimum:

Page 1 – Bill overview

Energy bill overview
Source: Centre for Sustainable Energy
  1. Account or customer number – This number is unique to you. You should have this number ready whenever contacting your energy supplier.
  1. Bill date and period – The bill date indicates when the bill or statement was sent out. The bill period is the date range that the bill or statement actually relates to.
  1. Balance from the last statement – The number shown here refers to the balance that was carried over from the last bill or statement you received. This number should match the account balance on the last bill or statement you received.
  1. Received payments – This is a record of any payments you’ve made since the last bill or statement, including monthly direct debits and top-ups. If any payments you’ve made are missing then you should contact your supplier.
  1. Previous account balance – This is the outstanding balance from your last bill or statement. If you’re up to date and have paid off your previous bill then this figure will be £0.00. 
  1. Any charges for this period (including VAT) – This record the total costs incurred by all gas and/or electricity used within the relevant billing period. Sections 13-15 below further explain how this is calculated.
  1. Your new account balance – This is what you either owe or are owed. This figure is a combination of the charges for this period, as well as the balance from the previous period.
  1. What do I pay – If you pay by direct debit, then this number shows how much you’re currently paying. If this number is a bill, then it instead shows how much you owe. A previous over or underpayment can cause this number to be more or less than your average monthly usage.
  1. Personal projection – This is a prediction of how much your gas and/or electricity will cost over the next year.
  1. Cheaper tariffs – This bill should always display whether or not there’s a cheaper tariff you could switch to with your current supplier. Just bear in mind that although your supplier might suggest a cheaper tariff with them, there’s a good chance that a different supplier might be even less expensive. 

Page 2 – Tariff breakdown

Energy tariff breakdown
Source: Centre for Sustainable Energy
  1. About your tariff – The ‘about your tariff’ box includes the information needed to compare your tariff against other tariffs available on the market. This info comprises of your tariff name, how you pay for fuel, the date your tariff ends, any exit fees that may need paying and estimated usage over the last 12 months.
  1. Tariff comparison rate (TCR) – This rolls the unit rate, standing charge, discounts and VAT into one figure. This lump sum makes comparisons much easier to understand. You should use a comparison service like Compare the Market to weigh up suppliers based on your actual usage as TCRs assume average usage. 
  1. Meter readings – If this number is an estimation from your supplier, then it’ll usually say ‘estimated’ or ‘e’ next to it. If this meter reading has been supplied by you then it’ll likely say ‘customer supplied’ or ‘actual’ next to the reading. We’d recommend providing regular meter readings to your supplier, as this can help lower your energy bill.
  1. Unit rate – This is how much you pay per unit of gas and/or electricity. On your bill, units are measured in kilowatt-hours (kWh). Electricity unit rates are either single unit or dual. In the case of dual, there are two separate meter readings and it’s usually referred to as Economy 7. Gas meters measure in units of 100s of cubic feet (hcf) or cubic meters, but the gas itself is sold in kilowatt-hours (kWh). The conversion calculation will be displayed on your bill. 
  1. Standing charge – This is the amount you pay per day, irrespective of how much gas and/or electricity you actually use. Some suppliers don’t have a daily standing charge, or reduce it if you pay by direct debit.
  1. VAT – Currently, the VAT charged on the domestic use of electricity and gas is 5%. If the VAT rate on your bill is more than 5% then you’re being wrongly charged on a commercial rate and should immediately contact your supplier.
  1. Meter point reference number (MPRN) and meter point administration number (MPAN) – These are your unique supply numbers. MPRN indicates electricity (this can also be listed as ‘S number’) while MPAN indicates gas. These are legally required to appear on your bill but usually aren’t printed on your meter. Switching suppliers tends to be a much quicker process when you’re able to provide these numbers.

Energy Bill FAQs

Why do I have a duplicate electricity bill?

There are a couple of reasons as to why this may have happened. It’ll either be an error from your supplier or you’ve underpaid as a result of estimated billing. 

Uswitch found that in 2017 alone, 1.3 million customers were overcharged due to supplier mistakes – attempting to recoup lost money due to their internal system errors. Because many customers don’t properly read their electricity bills, these mistakes often go unnoticed, costing an average of £79 per UK household in 2017.

Meanwhile, an estimated billing error occurs when your supplier has to estimate your energy usage as they haven’t been supplied with regular meter readings. When they eventually do receive a meter reading, they may then find that you haven’t been paying enough to cover your actual usage.

What is paperless energy billing?

This is exactly what it sounds like. Rather than receiving a physical bill every month or quarter, you’ll instead get this bill through an online account that will have been set up with your supplier. Paperless billing will usually get you some kind of discount as it’s easier for the supplier to provide you with these types of energy bills. 

Why do energy bills have QR codes on them?

Suppliers are now required to put a scannable code on every bill. This code contains all the relevant information you’d need to compare and switch tariffs, such as supplier name, tariff name and annual usage. 

How can I get electricity without a deposit?

If you want to switch from an electricity prepayment to a standard credit meter then you’ll need to contact your energy supplier. To make this switch, you may be charged a small installation fee. You’ll also need to have cleared your account so there’s no outstanding debt. Your energy provider might also run a credit check to ensure you’ll be able to keep up with bill payments on a standard credit meter.

Who is the electricity regulatory authority?

Ofgem (the Office of Gas and Electricity Markets) is the electricity regulatory authority in the UK. Ofgem aims to regulate the electricity and gas markets to increase competition among suppliers and therefore provide cheaper energy to consumers.


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