By Martyn James

Copyright scotsman

I was talking on the news the other day about energy bills and rising prices, when I was asked the question I was dreading. “How can I tell if my bill is right?” I wish there was a simple answer to this, but sadly, there isn’t. Energy bills are far too complicated. But if you’re willing to put in a little bit of work you will understand so much more than before. Here’s how to do it. How to read your energy bill Energy bills feature three different charges: Charges for the energy you have used during the billing period. These are known as ‘unit rates’ and are worked out based on the number of units of gas and electricity you have used. Standing charges. This is a charge that you pay for a range of services, from maintenance to support services. You can’t opt out of standing charges or reduce them, even if you aren’t using gas or electricity at your property. VAT. This is currently 5 per cent on energy bills. Some businesses and individuals may be eligible for discounts. Ofcom, the energy regulator, also makes suppliers tell you loads more information, including; the amount of energy you’ve used, tariffs, payment dates and credit (and lots more). What is an energy tariff? A tariff is the amount of money you agree to pay for your gas and/or electricity. There are two main types. Fixed rates, where you pay a set rate for the term of your contract and standard variable rates, where what you pay fluctuates depending on the current price of energy. Different energy companies have a range of different tariffs, offers and special deals. If you’re not sure which one is right for you, contact the energy supplier and ask them to explain how they work. Make sure you understand how long the deal lasts for and if there are exit fees if you want to leave the agreement early. That doesn’t make sense! What to watch for on your bill Most people pay their bills by direct debit. That means that you’ll build up a big credit balance over a few months. However, energy firms usually bill you quarterly. This means that your credit balance will suddenly drop when the bill is due to be issued. If you want to check if this changing credit balance is correct, have a look at the latest bill. Add up the direct debit payments you have made each month and any credit balance you had at the start of the period. Compare this to the money you have been debited for your energy usage, VAT and standing charge. If this tallies up, your changing credit balance is correct. You can still make a complaint if you think you have been overcharged. Millions of smart meters are not transmitting data correctly, or may have developed faults. This can result in your bill being estimated. Your meter will show on the display if there is an obvious technical error, but transmission problems may not be obvious. It’s also possible that your energy supplier might think your transmitted or given readings are wrong and may use an estimate instead. Look for an ‘E’ or ‘estimate’ on your bill to identify if the reading has been calculated by the business. You can avoid metering problems by regularly checking the meter, providing manual readings and photographing the meter dial or display. If you think that you have been overcharged then take a look through your old bills and compare your energy usage over the last two or three years. If the bill suggests the number of units you have used has increased over the same time periods – and you’ve not changed your energy usage – then there may be a problem. If this is the case then your energy company will ask you to take readings over a short period or they may send out an engineer too. If this doesn’t solve the problem, you can make a formal complaint – or go to the free Energy Ombudsman. Martyn James is a leading consumer rights campaigner, TV and radio presenter and journalist. Read more from him at this link