How do you work out how much I pay for my energy?
How much you pay for your energy depends on your tariff prices and how much energy you use.
We need the following information to work out how much you pay:
- Your meter reading - this tells us how many kilowatt-hours (kWh) of energy you've used
- Your tariff prices:
- Unit rate – this tells us how much you pay for every kWh of energy
- Daily standing charge – this is the charge you pay for your electricity and gas supply evey day
We then do a simply sum to work out how much your energy costs:
Amount of Energy Used X Unit Rate + Daily Standing Charge = Cost of Your Energy
Ofgem estimates the typical household in Britain uses 2,900 kWh of electricity, 12,000 kWh of gas or 4,200 kWh for E7 annually. Find out more about how Ofgem works out the typical use for the energy price cap.