How energy billing works in 2026
An energy bill combines the units of gas or electricity used with your tariff's unit rate, standing charge, taxes and any account credits or arrears. Ofgem confirms that its Energy Price Cap limits rates for eligible default tariffs in Great Britain, but it does not cap a household's total annual bill.
Your Direct Debit is a payment towards the account, not proof of actual consumption. A supplier may adjust it where forecasts show that your current payments will leave a debit or excessive credit balance.
| Bill item | What it means | What to check |
|---|---|---|
| Meter reading | The reading used to calculate consumption | Look for an estimated-reading marker and compare it with the meter |
| Unit rate | The price charged for each unit used | Match it against your tariff confirmation |
| Standing charge | A daily charge applied even when little energy is used | Check the tariff and number of billing days |
| Account balance | Credit held or debt owed after payments and charges | Trace it back to the previous bill |
| Direct Debit | A regular contribution towards expected charges | Ask for the calculation if it changes unexpectedly |
Price-cap periods and rates can change during the year. Check Ofgem's current cap announcement and your supplier's tariff notice before comparing prices.
A practical bill-checking routine
Start with the meter serial number shown on the bill. It should correspond with the number printed on the physical electricity or gas meter serving your home.
- Photograph the meter: capture the reading, serial number and date.
- Identify estimates: compare estimated readings with your photograph and earlier statements.
- Check the tariff: confirm the tariff name, unit rate, standing charge and contract dates against the supplier's notice.
- Reconcile payments: compare the payment history with bank statements or prepayment receipts.
- Inspect adjustments: ask the supplier to explain corrections, transferred balances or charges covering an unusually long period.
Smart meters can still produce estimated bills if communications fail. Citizens Advice and Ofgem recommend providing a manual reading where the supplier is not receiving automatic readings.
Warning: do not assume a sudden bill is correct simply because it came from a smart meter. Check whether the reading is actual, estimated or entered incorrectly, including whether the supplier has confused metric and imperial gas meter details.
If high consumption appears genuine, use SupportFund's guide to reducing energy bills to identify practical savings without leaving your home dangerously cold.
What to do when an energy bill is wrong
Contact the supplier using a traceable channel and label the message as a billing complaint. State which charge you dispute, provide dated meter photographs and ask for a corrected statement plus a written explanation.
Ofgem's back-billing rules generally prevent a domestic supplier from charging for energy used more than 12 months earlier where the supplier failed to bill correctly and the customer did not obstruct accurate billing. Ofgem confirms this protection does not normally erase charges caused by the customer's unreasonable behaviour, such as blocking meter access or ignoring requests for information.
Complaint tip: continue paying the undisputed part where affordable. Ask the supplier to place recovery action on hold for the disputed amount while it investigates, and retain copies of bills, readings and correspondence.
If the supplier has not resolved the complaint after eight weeks, or issues a deadlock letter sooner, Ofgem directs consumers in Great Britain to the Energy Ombudsman. The Ombudsman can require corrective action, an apology or a financial remedy within its powers.
Northern Ireland has a separate regulatory and complaints framework overseen by the Utility Regulator. Customers there should follow their supplier's complaints process and then use the Consumer Council for Northern Ireland where appropriate.
Managing credit, debt and unaffordable payments
A large credit balance may justify a refund, but first check whether it is likely to be needed for higher seasonal consumption. Ofgem requires suppliers in Great Britain to refund credit on request unless they have reasonable grounds not to do so, and the supplier should explain any refusal.
If you cannot afford the bill, contact the supplier before cancelling payments. Ofgem requires suppliers to consider ability to pay when agreeing debt repayment arrangements, including affordable instalments and changes to repayment timing.
- Ask for a full income-and-expenditure review rather than accepting an unaffordable repayment figure.
- Request details of the supplier's hardship fund and independent debt advice partners.
- Check whether social security income is missing through SupportFund's benefits calculator.
- Seek specialist support through the SupportFund energy debt guide if arrears are already building.
Prepayment customers who cannot afford to top up should ask the supplier about emergency or additional support credit. This support is normally repayable, so request clear information about deductions and repayment terms before agreeing.
Billing rights when moving home or switching
Photograph every meter on the day responsibility begins or ends and send the reading to the relevant supplier. Keep tenancy, completion and handover records because they establish the period for which you are responsible.
If you move into a property without arranging a tariff, you will usually be supplied under a deemed contract until you agree another tariff or switch. Ofgem explains that occupants remain responsible for energy consumed, even if they did not choose the existing supplier.
When switching, compare the old supplier's closing reading with the new supplier's opening reading. Challenge mismatches immediately so the same energy is not charged twice or omitted and later rebilled.
Moving-home safeguard: never rely solely on an estate agent, landlord or departing occupier to submit readings. Your own dated photographs are stronger evidence if responsibility or consumption is disputed.
Rates and rules can change: this guide was reviewed on 5 August 2026. Confirm current Energy Price Cap rates and consumer protections on GOV.UK and Ofgem before acting.