How to Read a UK Energy Bill

A Complete Guide to Every Section and Charge

An energy bill is a record of the charges your energy supplier has calculated for supplying electricity, gas or both to your property during a particular period.

It normally brings together several different pieces of information:

• the energy you have used
• the price charged for each unit of energy
• your daily standing charge
• VAT and other applicable charges or adjustments
• meter readings used to calculate your consumption
• payments you have made
• credits or refunds applied to your account
• any previous balance
• your current account balance
• details of your tariff and payment method.

The exact layout varies between suppliers. One supplier may put the meter readings near the top of the page, while another may put them in a separate section. Some suppliers combine gas and electricity on one bill; others produce separate statements.

Do not worry if your bill does not look exactly like someone else’s. The underlying information is broadly the same.

The Five Numbers You Should Check First

If you have just received a bill and want to understand it quickly, look for these five things first.

Your Name and Supply Address

At or near the top of your bill, you should find the name of the person responsible for the account and the address where the energy is being supplied.

Check these details carefully, particularly if you have recently:

• moved house
• changed your name
• taken responsibility for a property
• started renting a property
• moved into a property previously occupied by someone else.

If the address is wrong, contact your supplier. This is particularly important where several properties or meters are located close together.

Your Energy Supplier

Your energy supplier is the company that sells the energy to you and sends your bill.

Your supplier is responsible for matters such as:

• billing
• your tariff
• payments
• meter-reading information
• your account balance
• Direct Debit arrangements
• billing corrections
• complaints about your account.

Your supplier is not necessarily the company that physically operates the electricity or gas network serving your property.

Your Account Number

Your supplier will normally give you an account number or customer reference.

Keep this number somewhere accessible. You may need it when contacting your supplier, discussing a bill, changing your payment arrangements or making a complaint.

If you have separate electricity and gas accounts, check whether your supplier gives you separate account references.

Your Meter Point Numbers

You may also see technical identification numbers associated with your energy supply.

For electricity, you may see an MPAN, or Meter Point Administration Number.

For gas, you may see an MPRN, or Meter Point Reference Number.

These identify the supply point rather than simply identifying your customer account.

These can be useful when switching supplier or resolving a problem involving the wrong meter or supply.

The Billing Period

Every bill should tell you which period it covers.

For example:

1 July 2026 to 31 July 2026

This is important because your standing charge is normally applied for each day in the billing period.

A bill covering 60 days will therefore normally contain approximately twice as many days of standing charges as a bill covering 30 days.

The length of the billing period also matters when comparing energy consumption. Using 600 kWh over 60 days is very different from using 600 kWh over 20 days.

Your Tariff

Your bill should identify the tariff you are currently on.

Your tariff determines how your energy is priced and can include information such as:

• the tariff name
• whether it is fixed or variable
• the electricity unit rate
• the gas unit rate
• electricity and gas standing charges
• your payment method
• the tariff end date, if applicable
• any exit fee.

Ofgem’s tariff information requirements are designed to make key information such as the tariff name, tariff type, payment method, unit rate, standing charge, end date and exit fees available to consumers.

Fixed, Variable and Time-of-Use Tariffs

Fixed tariffs

A fixed tariff normally means that the agreed unit rates and standing charges are fixed for a specified period.

It does not mean that your total bill is fixed.

If your electricity unit rate is fixed at 25p per kWh and you use 500 kWh, your consumption charge will be higher than if you use 300 kWh.

Variable tariffs

A variable tariff can have rates that change. If you are on a standard variable or other default tariff covered by the Great Britain Energy Price Cap, the supplier must stay within the applicable price-cap limits.

The Price Cap does not put a maximum on your total bill. It limits the applicable unit rates and standing charges, while the amount you actually pay depends on how much energy you use.

Time-of-use tariffs

Some tariffs charge different prices at different times.

For example, a tariff may have peak and off-peak rates, or several different pricing periods during the day.

If you are on one of these tariffs, your bill may contain several electricity unit rates and several consumption figures.

Electricity Consumption in kWh

Your electricity consumption is normally shown in kilowatt-hours, abbreviated to kWh.

A kWh is a measure of energy, not simply a measure of how long an appliance has been switched on.

For example, an appliance using 1 kilowatt of power for one hour uses 1 kWh.

An appliance using 2 kilowatts for half an hour also uses 1 kWh.

Your electricity bill uses your kWh consumption to calculate the consumption charge.

Your Electricity Unit Rate

The electricity unit rate is the amount you pay for each kWh of electricity you use.

It might appear on your bill as:

• 25.00p per kWh
• 25p/kWh
• £0.25 per kWh.

These examples represent the same underlying price.

If you use 400 kWh at 25p per kWh:

400 × £0.25 = £100

Your electricity consumption charge would therefore be £100 before taking account of any other applicable charges, credits or adjustments.

Gas Consumption in kWh

Gas is also normally billed in kWh, even though the gas meter itself may measure the volume of gas passing through it.

This is why the number displayed on a gas meter may not look anything like the number of kWh shown on your gas bill.

Your supplier converts the meter measurement into the kWh figure used for billing.

The conversion is particularly relevant if you have an older gas meter that measures gas in cubic feet or cubic metres.

Your Gas Unit Rate

The gas unit rate is the amount you pay for each kWh of gas.

For example, if your gas unit rate is 7p per kWh and you use 1,000 kWh:

1,000 × £0.07 = £70

Your gas consumption charge would therefore be £70 before any applicable standing charge, VAT, credits or other adjustments.

Your Meter Readings

Your meter readings are one of the most important parts of your bill because they establish how much energy your supplier believes you have used.

For a simple single-rate electricity meter, the calculation is essentially:

Current meter reading − previous meter reading = energy used

For example:

• Previous reading: 15,000 kWh
• Current reading: 15,400 kWh
• Consumption: 400 kWh

The supplier then applies the relevant unit rate to that consumption.

Actual Meter Readings Versus Estimated Readings

Look carefully at whether the readings on your bill are marked as actual or estimated.

Actual readings

An actual reading is based on a meter reading that has been supplied to, or obtained by, your energy supplier.

Estimated readings

An estimated reading is an estimate of how much energy you have used.

If your supplier does not receive regular readings, it may estimate your consumption. That estimate can be higher or lower than your actual use. It is recommended to provide regular meter readings where your supplier is not receiving them automatically.

An estimated bill is not necessarily wrong. But if the estimate is significantly different from your actual meter reading, it is worth submitting an up-to-date reading and asking your supplier to recalculate the bill.

How to Read Your Electricity Meter

The exact process depends on the type of meter you have.

For a standard digital single-rate electricity meter, you generally record the main whole-number reading and ignore figures after the decimal point or figures specifically identified as fractions.

A two-rate meter, such as one used for Economy 7, has separate readings for its different rates. You need to provide both readings when asked.

If you are unsure which figures to submit, use your supplier’s instructions for your particular meter model.

How to Read Your Gas Meter

Gas meters come in several forms, including digital metric meters, older imperial meters and dial meters.

With a digital metric meter, the main whole-number reading is normally used and numbers after the decimal point are ignored for the meter reading. Older imperial meters use a different format. Dial meters require you to interpret the position of each pointer.

If you are uncertain about your meter, identify its make and model and use your supplier’s guidance rather than guessing.

Smart Meter Readings

If you have a smart meter operating correctly in smart mode, it will normally send meter readings to your supplier automatically.

This reduces the need for you to submit readings manually.

However, a smart meter can sometimes stop communicating correctly with the supplier. This can happen, for example, after switching supplier or because of a communications problem.

If your bill says that your readings are estimated even though you have a smart meter, check whether the meter is still operating in smart mode. Take and submit readings yourself if automatic readings are not reaching the supplier.

What Is the Standing Charge?

The standing charge is a fixed daily charge applied to your energy account.

You normally pay it for each day that the supply is active, regardless of how much energy you use that day.

If your electricity standing charge is 57p per day and your bill covers 30 days:

30 × £0.57 = £17.10

You would therefore have £17.10 of electricity standing charges for those 30 days.

Gas normally has its own standing charge, so a dual-fuel household will usually see two separate standing charges.

Ofgem explains that standing charges are set by suppliers and form part of the Energy Price Cap for relevant default tariffs.

Why Do You Pay a Standing Charge?

The standing charge is part of the overall cost of supplying energy to your property. It contributes towards costs associated with operating and maintaining the energy system, including network-related costs, metering and certain policy costs.

It is therefore not simply a charge for the amount of electricity or gas you use.

This distinction matters because reducing your consumption does not normally eliminate your standing charge.

Electricity and Gas Have Separate Standing Charges

If you have both electricity and gas, you will normally pay a standing charge for each fuel.

The figures above are illustrative only. Your actual standing charges depend on your tariff, region and payment arrangement.

VAT

Domestic energy is generally subject to VAT at the reduced rate of 5% where the relevant conditions are met.

Your supplier may display VAT separately or include it within the prices shown.

This distinction matters when checking calculations. Do not add 5% VAT to a figure if the figure already includes VAT.

For example, Ofgem’s published Energy Price Cap rates include 5% VAT. For the 1 July to 30 September 2026 cap period, Ofgem’s published average Direct Debit figures are 26.11p/kWh and 57.19p/day for electricity, and 7.33p/kWh and 29.04p/day for gas. These are averages across England, Scotland and Wales, and your actual rates can differ by region and circumstances.

Your Consumption Charge

The consumption charge is the part of your bill that relates directly to the amount of energy you have used.

The basic calculation is:

Energy used in kWh × unit rate = consumption charge

For example:

• Electricity used: 400 kWh
• Electricity unit rate: 25p/kWh

Therefore:

400 × £0.25 = £100

The same principle applies to gas.

Your Total Energy Charges

A simplified energy bill can be thought of as:

Consumption charges + standing charges + applicable taxes and adjustments = charges for the billing period

Your final account balance may then also include payments, credits and previous balances.

This distinction is important. The cost of energy supplied during the billing period is not necessarily the same as the amount you need to pay today.

Previous Balance

Your bill may include a previous balance.

This is the position of your account before the latest charges and payments are taken into account.

It may be shown as:

• previous balance
• balance brought forward
• balance from previous bill
• opening balance.

Do not automatically treat this as a new energy charge. It may simply be an amount carried forward from an earlier statement.

Payments You Have Made

Your bill or account statement should normally show payments that have been applied to your account.

These might include:

• Direct Debit payments
• card payments
• bank payments
• prepayment top-ups
• other payments or credits.

Check that payments you know you have made appear on the account.

Your Account Balance

Your account balance tells you whether the money you have paid into your account is currently greater or less than the charges applied.

You will commonly see one of two positions:

• In credit — there is money remaining on the account after the current charges and other transactions have been accounted for.
• In debit — the charges currently exceed the payments and credits on the account.

Ofgem notes that credit can arise for several reasons, including regular Direct Debit payments being made at a different frequency from the supplier’s billing calculations.

What Does “In Credit” Mean?

If your account says you are £250 in credit, it generally means that £250 remains on your account after the supplier has accounted for the charges currently applied.

It does not necessarily mean that you have been overcharged or that something is wrong.

For a household paying by Direct Debit, credit can build up because the same monthly payment is collected throughout the year while energy use varies by season.

For example, a household may use substantially less gas during summer but continue making monthly payments.

If you have accumulated a large credit balance, you can ask your supplier to review your payments and whether a refund is appropriate. Ofgem says customers can ask for a refund from a live account, although the supplier can have reasonable grounds for not making one immediately.

What Does “In Debit” Mean?

If your account is in debit, the supplier’s charges currently exceed the money available on your account.

For example:

• Energy charges: £300
• Payments and credits: £250
• Balance: £50 debit

This does not automatically mean that your supplier has made a mistake. It may simply mean that your payments have not yet caught up with your actual energy use.

However, if the balance is unexpected or large, check the meter readings, tariff rates and billing period.

Your Direct Debit Is Not Your Monthly Energy Cost

This is one of the most important points to understand about energy bills.

If your supplier collects £150 by Direct Debit each month, that does not necessarily mean that you used exactly £150 of energy that month.

Your supplier may calculate your Direct Debit to spread the expected annual cost across the year.

For example:

The Direct Debit is therefore a payment arrangement rather than a precise monthly measurement of energy consumption.

Regular meter readings help suppliers set Direct Debit payments more accurately.

Why Your Direct Debit Might Be Higher Than Your Bill

Suppose your current energy charges are £100 but your monthly Direct Debit is £160.

That does not necessarily mean your supplier is charging you £60 too much.

The additional money may be building credit to cover periods when your energy use is expected to be higher.

However, your supplier should be able to explain how it calculated your Direct Debit. If the amount appears unreasonable, ask for the calculation and the meter readings used.

Multi-Rate Electricity Bills

If you have Economy 7 or another multi-rate tariff, your electricity bill can contain more than one consumption figure and more than one unit rate.

For example:

The actual rates and periods depend on your tariff.

Ofgem confirms that multi-rate tariffs can have different unit rates for peak and off-peak periods, with the relevant rates subject to the applicable price-cap rules where the tariff is covered by the cap.

Time-of-Use Tariffs Can Be More Complicated

Some smart-meter tariffs have several pricing periods.

Your bill might therefore show:

• peak consumption
• off-peak consumption
• overnight consumption
• daytime consumption
• several different unit rates.

Do not try to calculate the whole bill using one unit rate if your tariff has several rates.

Instead, calculate each pricing period separately and then add the results together.

Gas Meter Conversion

If you have gas, your bill may include a calculation showing how the supplier converted your meter reading into kWh.

You may see terms such as:

• cubic metres
• cubic feet
• calorific value
• conversion factor
• kWh.

You generally do not need to perform this calculation yourself. The important figure for understanding the price you pay is the resulting kWh consumption.

Discounts, Credits and Adjustments

Your bill may contain credits or adjustments in addition to your normal energy charges.

These can include:

• tariff credits
• promotional discounts
• refunds
• compensation
• billing corrections
• government support payments where applicable
• other account adjustments.

A credit reduces the amount due on your account.

If you do not recognise a credit or adjustment, ask your supplier to explain it. An unexplained credit can be just as important to investigate as an unexplained charge.

Additional Charges

Depending on your tariff and circumstances, you may see charges beyond the standard unit rates and standing charges.

For example, a bill or account statement might include:

• an early-exit fee
• a previous balance
• a debt repayment amount
• a billing adjustment
• another contract-specific charge.

Do not assume that every line described as a “charge” is part of the basic cost of the energy you used.

If you do not understand a charge, ask your supplier to explain exactly what it relates to.

Your Payment Method

Your bill should indicate how you pay for your energy.

Common arrangements include:

• Direct Debit
• standard credit, where you pay after receiving a bill
• prepayment.

Your payment method can affect the rates available to you. Ofgem publishes different Energy Price Cap rates for Direct Debit, standard credit and prepayment customers.

Prepayment Accounts

If you have a prepayment meter, your account may look different from a conventional credit account.

You may see information such as:

• current credit
• recent top-ups
• energy used
• standing charges
• debt deductions
• emergency credit.

With prepayment, you generally add credit before using energy, and the meter deducts charges as you consume energy.

Your Tariff End Date

If you are on a fixed tariff, look for the tariff end date.

For example:

Tariff end date: 30 November 2026

This is a useful date to put in your calendar.

Before the fixed period ends, compare your options. Do not assume that the tariff you are currently on will remain the cheapest or most suitable option.

Exit Fees

A fixed tariff may include an exit fee if you leave before the end of the agreed term.

If your bill or tariff information lists an exit fee, check:

• how much it is
• when it applies
• when it stops applying.

Your Annual Consumption

Your bill or online account may show an estimate of your annual electricity or gas consumption.

This can be useful when comparing tariffs because your annual consumption determines how much difference a change in unit rate could make.

For example, a reduction of 1p per kWh has a much larger financial effect on a household using 15,000 kWh of gas each year than on a household using 5,000 kWh.

When comparing tariffs, use your own recent consumption where possible rather than relying solely on a generic “average household” figure.

Your Energy Consumption History

Many suppliers provide graphs showing your energy use over time.

These can help you identify:

• seasonal changes
• unusually high consumption
• changes after energy-efficiency improvements
• changes after installing new equipment
• patterns in electricity use.

If your supplier provides detailed smart-meter information, you may be able to see your consumption at much shorter intervals than on a conventional monthly bill.

Why a Bill Can Suddenly Be Much Higher

An unexpectedly high bill can have many causes.

• You used more energy.
• Your unit rates increased.
• Your standing charges changed.
• The billing period was longer.
• An estimated reading was replaced by an actual reading.
• A previous estimate was too low.
• Your tariff changed.
• A fixed tariff ended.
• A credit or discount ended.
• A previous balance was added.
• There may be a billing error.

Incorrect estimates, price increases, billing the wrong meter, faulty meters and supplier mistakes among the possible reasons for an unexpectedly high bill.

Before assuming the supplier has simply increased your price, check the kWh consumption and meter readings.

Why Your Bill May Be Higher After Sending a Meter Reading

This can be alarming, but it does not necessarily mean the new bill is wrong.

Suppose your previous bills were based on estimates that understated your actual consumption.

You then provide an accurate meter reading.

Your supplier discovers that you have actually used more energy than the previous estimates suggested. The next bill can therefore contain a larger charge.

In this situation, the higher bill may be correcting an earlier underestimate rather than charging you for an unusually large amount of new consumption. This as a common reason for a sudden increase following an actual meter reading.

What Is a Back Bill?

A back bill is a bill for energy you used previously but were not accurately charged for at the time.

This can happen because of problems such as billing errors or meter issues.

For households and microbusinesses, Ofgem’s back-billing rules generally prevent suppliers from charging for energy used more than 12 months ago where the supplier has not previously accurately billed or otherwise told the customer what was owed, subject to exceptions.

There are exceptions—for example, where a customer has acted unreasonably and prevented accurate billing.

If you receive a large back bill, check which dates and meter readings it covers and ask your supplier to explain the calculation.

Check the Dates on a Back Bill Carefully

If you receive a catch-up or back bill, look for:

• the period of consumption
• the meter readings at the beginning and end
• whether the readings are actual or estimated
• the unit rates used
• previous bills and payments
• the date the supplier says the error occurred.

If the supplier is asking you to pay for energy used more than 12 months ago, check whether the back-billing rules apply to your circumstances.

What If Your Bill Covers a Change in Tariff?

A tariff can change part-way through a billing period.

For example, your old tariff might end on 31 July and your new tariff might start on 1 August.

Your bill could therefore contain:

Do not calculate the entire bill using only one of the rates.

What If the Energy Price Cap Changes During Your Billing Period?

The Energy Price Cap for relevant default tariffs is reviewed every three months.

If a cap change occurs during your billing period, the bill may contain more than one set of rates.

For example, a bill could cover part of a period under one set of capped rates and the remainder under the next set.

Ofgem publishes the unit rates and standing charges for each cap period.

How to Check the Calculation on Your Bill

For a simple single-rate tariff, you can perform a basic check yourself.

Suppose your electricity bill shows:

• Consumption: 400 kWh
• Unit rate: 25p/kWh
• Standing charge: 60p/day
• Billing period: 30 days

Calculate the consumption charge:

400 × £0.25 = £100

Then calculate the standing charge:

30 × £0.60 = £18

That gives £118 before taking account of any other applicable items.

If your bill shows a different total, check whether VAT is already included and whether there are additional rates, credits, adjustments or previous balances.

Why Your Calculation Might Not Match the Bill Exactly

It is possible to perform a calculation using the figures displayed on your bill and get a slightly different answer.

Possible reasons include:

• the displayed unit rate has been rounded
• the displayed standing charge has been rounded
• VAT is already included
• there are multiple rates during the billing period
• the billing period contains a different number of days than you assumed
• there are credits or adjustments
• a previous account balance is included.

Ofgem has previously issued guidance concerning the precision used when displaying unit rates and standing charges because rounding differences can affect calculations.

A small rounding difference is therefore not necessarily evidence of an error. A large or unexplained difference should be investigated.

How to Compare Two Energy Bills

If you want to understand why your bill has changed, compare the individual components rather than just the final amount.

This comparison immediately tells you that the higher bill could be caused by both increased consumption and higher unit rates.

What to Do If the Meter Reading Looks Wrong

If the meter reading on your bill does not appear to match the meter, first check the dates.

The bill’s closing reading may have been taken several days before you looked at your meter.

If the dates do not explain the difference:

• take a new meter reading
• photograph the meter
• record the date
• compare the meter serial number if necessary
• send the reading to your supplier
• ask the supplier to investigate.

Keeping a photograph provides useful evidence of what the meter showed at a particular time.

What If Your Bill Uses an Estimated Reading?

If your bill is estimated and you can safely access your meter, take an actual reading and submit it to your supplier.

Your supplier may then be able to issue an updated bill based on the actual reading.

Regular readings are particularly useful if you do not have a smart meter operating in smart mode.

If you have difficulty accessing or reading your meter, ask your supplier what additional support is available.

What If You Have a Smart Meter but the Bill Is Estimated?

A smart meter does not guarantee that your supplier is receiving readings correctly at every moment.

If your bill is marked as estimated despite having a smart meter, your meter may not currently be communicating with your supplier in smart mode.

Check your supplier’s online account or contact the supplier. In the meantime, you may need to submit a manual reading.

Check the Meter Serial Number if Necessary

Some properties have multiple meters, particularly flats, converted buildings or properties with complicated supply arrangements.

If you suspect your supplier is billing you for the wrong meter, compare the meter serial number on the physical meter with the information associated with your account.

If they do not match, contact your supplier and ask them to investigate.

What If Your Bill Is Much Higher Than Expected?

Do not simply assume that the supplier has made a mistake.

Work through the bill systematically.

1. Check the billing dates.
2. Check the meter readings.
3. Check whether they are actual or estimated.
4. Check your kWh consumption.
5. Check the unit rate.
6. Check the standing charge.
7. Check VAT and adjustments.
8. Check previous balances.
9. Check payments and credits.
10. Check your tariff.

Possible causes include incorrect estimates, a supplier price increase, the wrong meter being billed, a faulty meter or a supplier billing error.

What If You Think the Supplier Has Charged the Wrong Rate?

Compare the rate shown on your bill with the tariff information you agreed to.

Check:

• tariff name
• tariff type
• unit rate
• standing charge
• payment method
• tariff start date
• tariff end date.

If the rate does not appear to match your contractual tariff, ask your supplier to explain the difference and provide a corrected bill if necessary.

What If You Do Not Understand a Charge?

You should not have to guess what you are being charged for.

Write down the exact description of the charge and ask your supplier to explain:

• what the charge is for
• when it arose
• how it was calculated
• which part of your contract allows it
• whether it is a recurring charge.

Keep a record of the response if the issue is disputed.

What If You Are Struggling to Pay?

If your bill is correct but you cannot afford it, contact your supplier as soon as possible.

Do not wait until the account has accumulated a large debt.

Your supplier can discuss repayment arrangements and available support. Customers struggling with energy debt to contact their supplier and explains that repayment arrangements should take account of what the customer can afford and their expected future energy use.

What Is the Difference Between a Bill and an Account Statement?

Suppliers do not always use these terms in exactly the same way.

A bill generally sets out charges for energy supplied during a particular period.

An account statement may show a wider transaction history, including previous bills, payments, credits and balances.

This matters because a statement can contain a much larger number than the charge for your latest period.

What Does “Amount Due” Mean?

“Amount due” generally refers to the amount the supplier says needs to be paid based on the bill and account position.

If you pay by Direct Debit, however, check the payment section carefully. The amount being collected may not correspond exactly to the energy charges for that particular billing period.

What Does “Balance Forward” Mean?

“Balance forward” simply means that an amount from an earlier part of your account history has been carried into the current statement.

It can be a credit or a debit.

Look at the transaction history if you want to understand where it came from.

What Information Should You Keep?

Keep copies of your important energy records, particularly if you have had a billing problem or recently changed supplier.

• energy bills
• meter readings
• meter photographs
• tariff information
• supplier correspondence
• Direct Debit changes
• payment confirmations
• complaints and responses.

If you switch supplier, your old bills can also help you establish your historical consumption and tariff information. Ofgem notes that information such as your current supplier, tariff, unit cost and annual consumption can be useful when arranging a switch.

A Simple Five-Minute Energy Bill Check

You can use the following process whenever a bill arrives.

1. Check the dates. Make sure you know exactly which period is being billed.
2. Check the tariff. Confirm that it is the tariff you expect.
3. Check the meter readings. Compare them with your meter or your records.
4. Check actual versus estimated. An estimate may explain an unexpected figure.
5. Check your kWh. Compare consumption with previous periods.
6. Check the unit rate. Confirm what you are paying per kWh.
7. Check the standing charge. Make sure the daily charge is what you expect.
8. Check VAT and adjustments. Look for credits, discounts or additional charges.
9. Check payments. Make sure your Direct Debit or other payments have been recorded.
10. Check the final balance. Confirm whether you are in credit or debit.

A More Detailed Bill-Checking Checklist

• Correct name
• Correct supply address
• Correct supplier
• Correct account number
• Correct meter
• Correct billing period
• Correct tariff
• Correct tariff rates
• Correct electricity meter reading
• Correct gas meter reading
• Actual or estimated reading identified
• Correct kWh consumption
• Correct unit rates
• Correct standing charges
• VAT correctly shown
• Credits correctly applied
• Payments correctly recorded
• Previous balance understood
• Current balance understood
• Tariff end date checked
• Exit fee checked if applicable.

Business Energy Bills Are Different

If you run a small or medium-sized business, do not assume that the domestic billing rules described above apply in exactly the same way to your business premises.

Business energy contracts are generally negotiated differently from domestic tariffs. The Energy Price Cap does not protect ordinary business energy contracts in the same way that it protects eligible domestic default tariffs. Ofgem explicitly states that business energy contracts are not covered by the domestic Energy Price Cap.

A business bill can also contain more complex pricing structures, including contract-specific charges, standing charges, unit rates and, for some customers, more detailed consumption information.

If you are checking a business bill, focus particularly on the contract terms, agreed rates, meter data, billing period and any additional charges.

What Business Customers Should Check

• Contract and tariff name
• Contract start and end dates
• Electricity and gas unit rates
• Standing charges
• Meter readings or consumption data
• Half-hourly or other interval data where applicable
• VAT
• Climate Change Levy where applicable
• Additional contract charges
• Previous balances
• Payments
• Current account balance.

Ofgem’s non-domestic billing guidance emphasises transparency around meter readings, estimated versus actual consumption and the information businesses need to understand their bills.

Frequently Asked Questions

Why is my energy bill higher when my unit rate has not changed?

The most likely explanation is that you used more energy, although a longer billing period, changed standing charges, an adjustment or a previous balance can also affect the amount. Check your kWh consumption first.

Why am I paying a standing charge when I hardly use any energy?

The standing charge is generally applied each day that the supply is active. It is separate from the amount of energy you consume.

Why is my bill based on an estimated reading?

Your supplier may not have received an actual meter reading. This can happen with traditional meters and can also happen if a smart meter is not communicating correctly. Submit an actual reading where possible.

Why is my Direct Debit higher than my bill?

Your Direct Debit is normally designed to manage payments over time and may not equal the cost of energy used during one billing period. If the amount seems unreasonable, ask your supplier to explain how it was calculated.

Does the Energy Price Cap mean I cannot pay more than the advertised annual amount?

No. The Energy Price Cap limits relevant unit rates and standing charges. Your total bill depends on how much energy you use.

Why does my gas meter show a different number from my gas bill?

Your gas meter may measure volume while your bill normally charges you for energy in kWh. Your supplier converts the meter measurement into kWh for billing.

What should I do if I think my energy bill is wrong?

Check the billing dates, meter readings, actual or estimated status, kWh consumption, unit rates, standing charges, VAT, payments, credits and previous balance. If something still does not make sense, contact your supplier and explain the specific discrepancy.

Can I get money back if my energy account is in credit?

You can ask your supplier for a refund from a live account. The supplier may have reasonable grounds for retaining some or all of the credit, for example where it expects future charges, but Ofgem says suppliers must return credit on closed accounts where applicable.

How often should I read my energy meter?

If your supplier is not receiving automatic readings, taking a reading regularly—often monthly—is a useful way to keep your bills based on actual consumption. If your smart meter is working correctly in smart mode, readings should normally be sent automatically.