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A Guide to Understanding your Energy Bill

Do you get confused just looking at your energy bill? Does it fill you with feelings of dread, as if it’s written in a foreign language? You’re not alone if you feel this way. Most consumers don’t understand their energy bills. Here is some helpful information to decrypt your bill:

  1. Account number

This is your unique number that was provided on setting up your account. You’ll need to keep this number handy whenever you contact your energy provider, so they can locate your details quickly.

  1. Statement period

This is the time period for which you are being charged, from one date to another.

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  1. Estimate or actual?

On your bill your supplier will state whether their charges for this period are based on an estimate of your household usage from a previous bill or the actual meter readings taken from your property. Being able to give regular meter readings is better as it will provide more precise information to your provider.

  1. Tariff

This is the name of the current package you are on. If you choose to switch supplier, they will likely ask about what current tariff you are on so they can offer you a competitive deal.

  1. Payment

This figure is the amount of direct debit being taken or how much is left for you to pay. Think you’re running an inefficient boiler? This could see you wasting hundreds of pounds every year. For Boiler Installation Forest Of Dean, visit Green Planet Heating who can take care of all your Boiler Installation Forest of Dean needs.

  1. Account information

Your account information details recent account activity, such as what you have previously paid and when, any discounts, additional charges and VAT. A more detailed account summary should be found towards the end of your bill.

  1. Your usage

This section provides details of exactly how much energy your household has used within a specified time period. It will also provide a comparison between your current usage and what you used in the same period last year. This is helpful as you can see whether there might be areas for you to cut down on.

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  1. Other deals

This is a section that your energy supplier might include, and it highlights other deals they have on offer and whether there are any cheaper tariffs you could be on.

Did you know that the government and Ofgem don’t set the prices for energy? Suppliers compete against each other for your custom, putting pressure on them to attract and retain customers by offering the best value tariffs. It’s always a good idea to shop around to find the best deals for your home.

The price of energy changes often, so many suppliers choose to buy their energy in advance to reduce that instability. Some suppliers will buy energy that is sold on standard tariffs up to 3 years in advance.

The energy for customers on fixed term deals tends to be purchased much closer to the time the tariff is available. This means that changes in the wholesale price of energy won’t affect the suppliers and tariffs at the same time.

 

 

 

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