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One of the best ways to avoid overpaying your energy bill is to understand exactly what your bills mean.
Read Time : 4 mins
As energy prices continue to skyrocket as we enter Q3, and the British energy price cap is forecast to rise to £3,359 in October, many are left wondering if they can cut their energy bills.
One of the best ways to keep costs is by actually understanding your energy bill. In this guide, we’ll be explaining exactly what each bill means so you know what you’re paying for and whether you’re receiving the best deal on your gas and electricity.
Generally speaking, most regular energy bills include the following:
This is the company that supplies gas and electricity to your home. Common energy suppliers include NPOWER, British Gas, EDF Energy, Scottish Power, SSE and E-ON UK.
The tariff name tells you which tariff you are currently paying for. This name is important for when you come to compare prices on comparison sites should you want to switch energy suppliers.
This is an estimate of how much energy you have used over the last year and isn’t your actual usage. You should always submit a meter reading to your suppliers to ensure you’re being charged more accurately on the exact amount of energy you use.
This estimate helps to give you a rough idea of how much you’re spending (or overspending) by.
Currently, the cheapest tariffs cost around £835 per year for average sized households, so if your bills are significantly higher than this, it’s likely time to make the switch to a more affordable tariff.
This tells you what your annual electricity consumption is along with the cost per kWh, so you know exactly how your bill is being calculated.
For example, if you have used 873kWh at 14.4p per kWh the cost of electricity should be £125.72. You may also find there are other costs added on top of this, such as a standing charge for a certain number of days and VAT at 5%.
In order to ensure you’re only paying for the electricity you’ve actually used, you should submit regular electricity meter readings to your supplier.
This tells you what your annual gas consumption is along with the cost per kWh, so you can see how your gas bill has been calculated.
For example, if you have used 2289kWh at 4.92p per kWh, the cost of your gas usage should be £112.62. You will also find additional costs on top of this, such as a standing charge for a certain number of days and VAT at 5%.
In order to ensure you’re only paying for the gas you’ve actually used, you should submit regular gas meter readings to your supplier.
Your electricity supply number, also known as a Meter Point Administration Number or MPAN is a unique set of digits assigned to your house. You’ll need this number if you ever decide to switch electricity suppliers.
This number is 21 digits in length and is printed on every electricity bill.
This is a prediction of how much your energy will cost for the next year based on your current usage.
With energy prices rapidly rising over the last few months, it can be difficult to know whether you’re actually paying the right amount for your gas and electricity.
Analysts are currently predicting that the average energy bill will reach £3,500 following the October price cap increase, so if you’re already paying more than that then it is likely time to do some shopping around for a better deal.
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