Energy Saving · 6 min read
How to understand your energy bill
Energy bills are needlessly confusing. Here's a plain-English guide to what the numbers actually mean.
If your energy bill looks like a wall of numbers, you're not alone. Understanding it helps you spot waste and check you're on a fair deal. Here's the plain version.
The key terms
- kWh (kilowatt-hour) — the unit of energy you're charged for. One kWh runs a 1,000-watt appliance for an hour.
- Unit rate — what you pay per kWh of gas or electricity.
- Standing charge — a fixed daily fee you pay regardless of usage, covering the cost of supplying your home.
- Estimated vs actual — bills based on estimates can be wrong; submit meter readings or use a smart meter for accuracy.
How to use it
- Compare your kWh usage across periods to spot rising consumption.
- Check whether your readings are 'estimated' — if so, send actual readings.
- Note your unit rates and standing charges so you can compare tariffs.
- Look at the projected annual cost as a sanity check.
Smart meters
A smart meter sends readings automatically (so no more estimates) and shows near-real-time usage on an in-home display — useful for spotting what's costing you and seeing the effect of changes you make.
Knowledge is the first saving
Understanding your usage in kWh is what lets you see whether the changes you make are actually working — and whether your tariff is competitive.
More practical advice in our Insights & Guides.