Everyone who uses gas and electricity must pay energy bills. While you most likely receive a utility bill every month, you might be wondering what exactly is the utility bill meaning. Here we explain everything you need to know about energy bills, including how to calculate bills per month. We also talk about what an estimated energy bill is. Thanks to our short guide, managing your monthly electric bills and gas bills will be easier.
What is a utility bill?
A utility bill is a monthly statement showing the amount an energy consumer must pay for their gas, electricity, and water usage. Sometimes things such as sewage, trash, internet, or phone might be included on the list of utilities. However, here we focus on gas and electricity bills.
If you are wondering how much your electric bill will be, you need to think about how much electrcity you use each month. To determine that, you can check your meter or get in touch with your supplier.
The final amount depends, to a great extent, on your consumption. This means that the more electricity you use, the more expensive your bill will be. However, to be able to get an electricity bill estimate, you have to be aware of the fact that your energy bill is also composed of other costs. As Ofgem reports, these include:
- wholesale costs
- network costs
- social and environmental obligations
- other direct costs
- supplier operating costs and margin
- taxes
If you are looking for an energy bill estimator, you can use our electricity bill calculator. To get the electricity bill estimate, you need to enter the following information:
- Electricity used/Kwh
- Unit Rate (in p per kWh)
- Number of Days
- Daily Standing Charge (in p per day)
Once you enter these details, our energy bill calculator will give you an estimate of how much your electric bill will be.
What is an estimated energy bill?
An estimated energy bill is based on an average consumption of an energy consumer rather than on an actual meter reading. Suppliers send estimated energy bills to energy users when consumers fail to regularly submit readings.
Estimated gas and electric bills tend to be more expensive than bills based on actual readings. This is why providing energy companies with frequent meter readings is important.
To avoid receiving estimated electricity bills and estimated gas bills, energy consumers should also consider having a smart meter installed in their home or at their business premises. Smart meters send readings to suppliers automatically so energy consumers do not have to worry about remembering to do it themselves. And, smart meters are very accurate so users do not have to worry about being overcharged.
Why are my energy bills so high?
At the moment, the UK is facing an unprecedented energy crisis and all energy consumers are seeing increases to their energy bills. This is because wholesale energy prices have been going up and have been reaching record heights.
Wholesale energy prices reflect the costs energy companies pay to get energy they then supply to domestic and business customers across the UK.
‘Prices on the wholesale market can go up and down very quickly. They depend on what’s happening globally with fuels like gas, oil, coal and increasingly renewable fuels. Demand also affects price. Wholesale prices are generally lower when demand is low and fuel availability is high. They rise when the opposite is the case,’ Ofgem explains.
What to do if your energy bills are too high
If you think that your energy bills are too high, you can try to lower them by lowering your consumption. Some tricks to help you do that include:
- Turn appliances off if you are not using them
- Lower the temperature inside by 1 degree Celcius
- Insulate the building
- Switch to LED light bulbs
- Time your showers to make them shorter
- Turn the lights off every time you leave the room
- Make the most of natural light
- Install timers and thermostats
- Purchase energy efficient appliances
A great way to save money on your energy bills is also to switch energy suppliers. There are hundreds of energy companies in the UK and each of them offers various tariffs and contracts so you can be sure to find one that matches your energy needs and goals.
And, if you are a business thinking that your energy bills are too high because you are being overcharged, you could use our Commercial Electricity and Gas Bill Validation services. We can check your past energy bills to determine whether you have paid too much and we can help you claim your money back.