Energy bills can be confusing things, just what is a kWh? Now we know that different energy companies set their bills out slightly differently but there are some essentials that should be the same on each bill. This blog hopefully will help clear things up a bit!

Let’s break it down…

Did you know that the breakdown of the average energy bill consists of:

• 45% is the actual cost of energy

• 40% is spent on transport, distribution and running costs

• The rest of the bill is divided into environmental, metering, profit and VAT costs. (Figures from NERA Economic Consulting)

So what’s on your bill?

Tariff

Your energy bill is personalised to you and includes your current tariff information. It will display:

• Your tariff name

• The date your tariff comes to an end

• Your chosen method of payment

Payments & Charges

This shows how you pay your energy bills and what the unit rate and standing charges are for your current tariff. This is where you will find the kWh - A kilowatt hour (kWh) is a measure of how much energy you’re using. It doesn’t mean the number of kilowatts you’re using per hour (that would be too easy!) It is a unit of measurement that equals the amount of energy you would use if you kept a 1,000 watt appliance running for an hour.

Terms

Here you’ll find the date your energy tariff ends, the date until your current price is guaranteed and any exit fees you might have to pay should you wish to cancel before the end date.

Special Terms or discounts

Find out about any discounts you may be entitled to such as for managing your account online, along with any additional charges, products or services, such as supermarket loyalty points.

Consumption

This shows your annual energy consumption, along with a projection of your gas and electricity bills for the next twelve months.

A quick glossary of terms you might find on your bill Tariff:

The amount you pay for your gas and electricity Standing charge: This means you pay a fixed amount for the amount of energy you use and supply cost. If you have ‘no standing charge’ on your bill, this means that you don't have a standing charge, you pay for the energy that you actually use, but the supply cost is factored into the cost of each unit.

Smart meters: These allow you to pay for the gas and electricity that you actually use. It eliminates the need for estimated readings as your meter reading is automatically sent to your energy supplier. The government has set a target that all homes should have a smart meter by 2020.

Prepayment meter: A prepayment energy meter enables households to pay for their gas and electricity up front. Payments can be made using tokens, smartcards or keys that can be topped up.

Actual bill: A bill based on an actual meter reading, as opposed to an estimated gas and electricity reading.

Billing period: The length of time that you're being charged by your supplier for using gas and electricity.

Ampere: An ampere - which can be shortened to amp - is a unit of electrical current.

Ofgem: The Office of Gas and Electricity Markets. Ofgem regulates the companies who provide gas and electricity in the UK.

Energy consumption: This is the amount of energy you use.

Energy efficiency: This refers to using less energy. The efficiency of household appliances can now be measured according to the European Union efficiency label which rates appliances from A (most efficient) to G (least efficient).

Gas Safe Register: The national watchdog for gas safety in the UK, replacing the role formerly played by Corgi. All gas installers and maintenance engineers should be registered with the scheme.

Meter Point Administration Number (MPAN): A 21-digit number that is unique to your property and can be found on your electricity bill. You will need to quote this if you want to change supplier.

Meter Point Reference Number (MPRN): The gas equivalent of an MPAN, which can be found on your gas bill. It is unique to your property and does not change, even if you switch your gas provider.

Dual fuel: Dual fuel means that your gas and electricity are both supplied by the same provider.

Economy 7: This is an electricity tariff that means you pay a different price for your electricity at different times of the day.

Economy 10: Similar to Economy 7, this is designed to be used with high thermal mass heating such as storage heaters, underfloor heating, and is also used with electrical boilers driving radiators or water-based heat stores.

We like to help… Here is a link to a handy list of all the main energy suppliers along with an explanation of their bills - CLICK HERE