What do energy tariff terms mean?

Prices and tariff types

A unit rate is the price for each kilowatt-hour (kWh) of electricity or gas you use. A standing charge is a daily amount for having a supply, even if you use no energy that day.

The energy price cap is an Ofgem limit on certain unit rates and standing charges, not a limit on the total bill. It applies to eligible default tariffs, including standard variable tariffs (SVTs), with rates varying by region, fuel and payment method. A standard variable tariff can change over time, subject to applicable rules.

A fixed tariff holds specified unit rates and standing charges for a set term; it does not fix how much you use or necessarily fix every other charge. Check the end date and exit fees: an exit fee may apply if you leave before the agreed end, subject to the contract and rules. Some tariffs have no exit fee.

Economy 7 is a time-of-use arrangement with separate day and cheaper night electricity rates, usually alongside a meter that records both. Other time-of-use tariffs price electricity differently by time. Check your actual hours, meter and usage pattern before comparing.

Meters, bills and payments

A smart meter records usage and can send readings to your supplier; it does not itself guarantee a lower tariff. If you generate electricity, an export tariff pays for eligible electricity sent to the grid; check the scheme, eligibility and rates separately.

Direct Debit pays by regular bank collection, often smoothed across the year. Prepayment means paying for energy before use, commonly by topping up a meter. Standard credit usually means paying after receiving bills. The payment method can affect tariff rates and the way a supplier manages your account.

A credit balance means payments recorded on your account exceed charges recorded so far; it is not automatically an overcharge, because seasonal use and future bills matter. Ask your supplier to explain the balance and request a fair refund of genuine excess credit. An estimated read is the supplier's estimate of consumption; an actual read comes from a meter reading. Send regular readings where possible and keep dated evidence.

MPAN identifies an electricity supply point; MPRN identifies a gas supply point. They help identify the supply, but are not meter readings or account passwords.

Support and consumer help

Back-billing is a supplier charging for energy used earlier. In many cases, suppliers cannot recover domestic energy charges for use more than 12 months ago where the delay was their fault, but exceptions apply, including some cases where a customer has prevented accurate billing or failed to provide requested information. Check the detailed rules before assuming a bill is cancelled.

The Warm Home Discount is a government-backed discount scheme for eligible households in Great Britain; eligibility, delivery and arrangements can change by scheme year. Northern Ireland has different support arrangements. The Priority Services Register (PSR) is a free service through energy network operators and suppliers for eligible people who may need extra help, for example during an interruption or when communicating with a supplier.

The Energy Ombudsman is an independent dispute resolution service for eligible unresolved complaints about energy suppliers and some related services. Usually you must complain to the supplier first and give it the opportunity to resolve the issue; check current eligibility and process.

Scope and sources

Rules and schemes differ across Great Britain and Northern Ireland. Ofgem regulates energy in Great Britain; Northern Ireland has separate arrangements and its regulator is the Utility Regulator. Check the rules that apply where you live.

Good to know

Does the price cap limit my bill?

No. It limits applicable rates and standing charges, not total consumption or your total bill.

Does a fixed tariff mean my bill cannot change?

No. The contracted rates may be fixed, but your bill can change when your usage changes. Check which charges and terms are fixed.

Is a credit balance automatically money I can withdraw?

Ask your supplier to explain the balance and request a refund of excess credit. Suppliers should handle credit refunds fairly, but forecast use and account circumstances matter.

What is the difference between MPAN and MPRN?

MPAN identifies an electricity supply point; MPRN identifies a gas supply point.

Sources

• Ofgem: energy advice for households
• Citizens Advice: energy supply
• Citizens Advice: back-billing
• Ofgem: Priority Services Register