How to read your annual energy statement

Published:

05 August 2010

Topic:

News,Gas & Electricity

Over the next few months, you'll be receiving your first annual energy statement - a simple piece of paper that will revolutionise how you think about your energy bills. Or will it?

But, according to Consumer Focus, not all of the Big Six energy companies are making these statements as straightforward as possible. If you're confused about what the information on your statement means, here's a step by step guide.

We've used a sample statement from British Gas - the only provider to be singled out by Consumer Focus as 'very good' for simplicity and design.

If you're with a different supplier then don't panic - the information on the statement should be the same. Just compare the two to find what each section means.

Your annual energy statement

The most important bit of this section is over on the right. You'll want to check the length of time the statement covers. For most people, this will be a year but if you've only just moved in then this may be shorter.

You can also see the name of your tariff, so this sample statement is for someone on British Gas' standard tariff. Most people in the UK are languishing on their provider's standard deal, when they could switch to a cheaper online tariff, so if you are one of them it's definitely time to switch.

For example, a British Gas standard tariff customer pays an average bill of £1,157.27 a year, but if they moved to the WebSaver 8 tariff, they'd save £258.45 on average.

Your usage

This is your predicted energy bill over the next 12 months, assuming you stay on the same tariff and that energy prices don't change.

Importantly, it also tells you just how much electricity you used over the last 12 months.

Armed with that information, you can easily compare gas and electricity providers through moneysupermarket.com and see what kind of savings you could make.

The difference between the average standard tariff and the average online deal is more than £250 - so it's well worth switching.

Is your tariff working for you?

So, is your tariff working for you? This is where the information you see gets a bit more complicated, but it's still useful.

You'll see the unit price you pay for energy, but Ofgem also requires energy companies to give details of any premiums you pay or discounts that you might qualify for.

For example, in this statement, British Gas has flagged up the savings that could be made by paying via monthly direct debit.

Small print

Unfortunately, some energy providers are sticking their annual energy statements onto the end of bills, meaning many people will miss them.

Your annual energy statement will help you work out how much you could save a year - and if that doesn't encourage you to switch then nothing will.

Related Links

• Compare tariffs from UK gas and electricity providers

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