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Prices and tariffs · Bills

How to read an energy bill

Most bills follow the same pattern: readings, the energy used, what it costs, and how that compares with what you have paid. Check each part in turn.

Updated 2 October 2026 · energy.org.uk editorial team

Check

What to check first

  • The reading type. Each reading is marked actual, smart or estimated. Estimated readings are the most common cause of a surprising bill.
  • The dates. The bill covers a period between two readings. A longer period costs more.
  • The units. Electricity is measured in kWh. Gas meters measure volume, which the bill converts to kWh using a calorific value: see gas meter readings to kWh.
  • The unit rate, in pence per kWh, and the standing charge, in pence per day, for each fuel.
  • VAT. Domestic gas is charged VAT at 5%. Domestic electricity in Great Britain has a temporary zero rate from 1 October 2026 to 31 March 2027; it is 5% before that date and in Northern Ireland. Check whether figures are shown before or after VAT, and don't add VAT to rates already quoted including it.
  • Your balance. Credit or debt carried from earlier bills, and what you have paid by Direct Debit.

The parts of a bill

Part What it tells you
Meter readings The previous and latest readings, and whether each was actual, smart or estimated
Energy used The difference between readings, in kWh (gas converted from m³ or ft³)
Energy charge kWh × unit rate
Standing charge Days in the period × daily charge
VAT 5% on gas. Electricity in Great Britain: 0% from 1 October 2026 to 31 March 2027, 5% otherwise and in Northern Ireland
Balance What you owe or are owed after payments
Tariff details Tariff name, end date, exit fees, and your yearly estimate

Worked example: checking a bill

A home's bill from 1 October 2026 to 1 January 2027 (92 days), using example rates. Use the rates and calorific value printed on your own bill.

Line Electricity Gas
Readings (both actual) 12,345 → 13,020 4,210 → 4,395 m³
Energy used 675 kWh 185 m³ × 1.02264 × 39.5 ÷ 3.6 = 2,076 kWh
Energy charge 675 kWh × 24.50p = £165.38 2,076 kWh × 6.40p = £132.85
Standing charge 92 days × 54.75p = £50.37 92 days × 33.00p = £30.36
VAT 0% (Great Britain, 1 October 2026 to 31 March 2027) = £0.00 5% = £8.16
Total £215.75 £171.37

If your supplier quotes rates including VAT, don't add VAT again. If a reading on your bill is estimated, the "energy used" line is an estimate too.

Do

Practical next steps

  1. If a reading was estimated, take an actual reading and send it to your supplier.
  2. Check the sums with the meter reading calculator.
  3. Compare your unit rates with the price cap for your region.
  4. If your Direct Debit seems out of line, use the Direct Debit check.

Take care

Important limitations

  • Layouts differ between suppliers; the information is the same.
  • Some smart and time-of-use tariffs show several unit rates for different times of day.

Related tools and guides

Sources

Official sources checked 2 October 2026.