Energy bills: understand what you are being charged for

Start with the period the bill covers

Write down the bill start and end dates before judging the amount. A catch-up statement, a first bill after moving or a long gap between statements can include more usage than a normal month. The headline total is not comparable until you know how many days and which tariff periods it covers.

• Compare the period with an earlier bill that covers similar dates.
• Check whether the account changed supplier or tariff during the period.
• Keep the bill date separate from the date your payment leaves your bank.

Read the charge lines, not just the total

Check the opening and closing readings, whether each reading is actual or estimated, the unit rates and the standing charges. These details explain how the supplier arrived at the energy charge and give you figures to compare.

• Electricity and gas are normally shown as separate fuels.
• A unit rate is not the same thing as a standing charge.
• A credit or debit balance can include earlier bills, payments and adjustments.

Keep payments separate from usage charges

A Direct Debit is a payment into the account. It can be set to smooth payments over time, so it will not necessarily equal the charge for the energy used in one billing period. Compare the payment history and balance with the bill rather than treating them as the same figure.

Make a like-for-like sense check

If one statement covers 60 days and another covers 30, compare the dates and usage per day before comparing the totals. This is a sense check, not a replacement for the supplier calculation: rate changes, estimated readings and adjustments can still affect the result.

• Keep readings from the same meter and register together.
• For gas, distinguish meter volume from billed kWh.
• Use a calculator only with the units and rates you have actually identified.

Worked example: separate charges from payments

Illustrative example only: 400 kWh at 25 pence per kWh is £100 of usage cost. A 30-day standing charge of 30 pence per day adds £9, giving £109 before any other bill items or account adjustments. A £120 Direct Debit is a payment into the account, not proof that the bill charge was £120.

Choose the check that matches the problem

Use the part of the account that looks wrong to choose your next step. A reading issue may need the estimated-bill guide; a payment issue may need the Direct Debit guide; a rate or usage question may be easier to test in a calculator.

• High total: compare periods, readings, rates and standing charges.
• Estimated reading: submit a dated reading and keep the confirmation.
• Credit or refund: establish whether the balance is current, pending or linked to a closed account.
• Older charge or dispute: build a timeline before contacting the supplier.

Common questions