What do the charges on my energy bill mean?

The two charges to look for

A unit rate is the price per kilowatt-hour (kWh) you consume. A standing charge is a fixed daily amount for having a connected supply. To estimate an annual fuel cost, multiply annual kWh by the unit rate and add 365 times the daily standing charge. Convert pence to pounds by dividing by 100.

Rates vary by tariff, region, payment method and period. The estimator's current benchmark rates and assumptions are shown on the energy price cap page; use your own bill for the exact rates that apply to you.

Direct Debit versus prepayment

A monthly Direct Debit is usually a smoothed payment based on forecast annual use and account balance. You can pay the same amount in summer and winter even though your consumption changes. A prepayment meter requires you to pay ahead; tariff rates and standing charges may differ from the Direct Debit benchmarks used here.

Always compare your actual tariff rates, payment method and meter setup. A fixed tariff also has an end date and may have exit fees.

MPAN, MPRN and VAT

Your MPAN identifies your electricity supply point. Your MPRN identifies your gas supply point. These numbers are on bills and can be useful when speaking to a supplier or switching; they are not meter readings.

VAT treatment can depend on the fuel, supply and applicable rules. Check your bill and the estimator's current rate assumptions to see whether VAT is already included; do not add it a second time.

The five things to find on your latest bill

Keep the latest bill, annual kWh from your supplier app, your MPAN and MPRN, your tariff end date, and any exit fees to hand. They make comparisons far more reliable than a monthly payment alone.

Good to know

What is a standing charge?

A fixed daily charge for an active electricity or gas supply, separate from the units you use.

Is my Direct Debit the same as my actual bill?

Not necessarily. Direct Debits often spread forecast annual costs evenly across the year and can reflect your account balance.

What are MPAN and MPRN?

The MPAN identifies your electricity supply point; the MPRN identifies your gas supply point. Both can be found on bills.

Is VAT included in the calculator's prices?

Check the current rate assumptions shown with the estimator and on the energy price cap page. If a displayed rate already includes VAT, do not add it again.

Sources

• See the current energy price cap rates