Energy bills can be confusing, filled with jargon, graphs, and small print. But understanding them is the first step to lowering them. To start the year right, here is a quick breakdown of what you are actually paying for when that email lands in your inbox:
1. The Unit Rate (p/kWh) This is the cost for every kilowatt-hour of energy you actually use. Think of this like the price of petrol per litre. This is the part you can control by switching off lights, turning down the heating, or washing clothes at 30 degrees.
2. The Standing Charge (p/day) This is the daily fixed cost to be connected to the grid. You pay this even if you go on holiday for a month and switch everything off. Currently, this covers the cost of maintaining the wires and pipes, as well as the cost of failed suppliers.
3. Estimated (E) vs Actual (A) Look at the meter readings on page 2 of your bill. Is there a small ‘E’ next to them?
- E = Estimated: The supplier is guessing what you used. This is often wrong and leads to shock bills later.
- A = Actual: You submitted a reading (or your smart meter did). This is accurate.
- C = Customer: You submitted the reading manually.
If your bill seems too high, check if it is based on an Estimate. Always provide actual readings to your supplier to ensure you only pay for what you burn.
