Everything you need to know about commercial and residential energy.

2. TableofContents
WhatIsEnergy?.....................................................
WhatIsandEnergyTariff?.....................................
FactorsThatWillAffectYourEnergy.......................
TariffsandRatesExplained.....................................
Out-of-ContractRates.............................................
Economy7andEconomy10Tariffs.........................
EneEnergyMetersExplained.........................................
HowtoFixFaultyMeters........................................
UnderstandingYourEnergyBill...............................
ClaimingBackMoneyandDiscounts.......................
ManagingEnergyDebt............................................
HowtoSwitchEnergySuppliers..............................
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3. Energyispowerthatweusedayinandoutinbothourhomesandbusinesspremises.Typically,itis
usedtoheatbuildings,bringlighttoroomsandtorunequipmentsuchascomputers.Wecansplit
energyusageintotwokeyareas:electricityandgas.
GGasisusedtorunitemssuchasstoves,ovens,dryers,fireplacesandtogenerallyheathomesin
residentialproperties.Inofficesandbusinesssitesgasisusedmainlyforheatingthebuilding’s,for
poweringairconditioningandforindustryspecificneeds(suchasstovesforrestaurants).Naturalgas
ismadeprimarilyfrommethaneandisfoundinundergroundrocks.Itisextractedtogotopowerplants
andconnectedtoyourhomesorbusinesses.Itishighlyfavouredasapartoftheenergymixduetoits
lowcosts.
EElectricityisaversatilealternativetogas.Likeit’scounterpartitisanenergyformthatcanhelpyou
heatandbrightenproperties.Oneadvantageofelectricityisitcanalsopowerconsumerelectronics
suchastelevisions,computersandtechnicalmachineryinthecommercialworld.Itcancomefrom
severaldifferentsourcesbutisstoredingenerators,beforeittravelstoourhomesthrough
transmissionlines(youwillrecognisetheseaspylons).
Wecanrefertoelectricityasasecondarysourceofenergybecauseit
needstobeconvertedfromaprimarysourceinordertobecreated.
TTheprimarysourcesthathelpusgenerateelectricityareasfollows:
WHATISENERGY?
Non-renewable
•Coal
•Oil
•NaturalGas
Renewable
••Wind–capturedbywindturbinesastheyturnfromnaturalgusts
ofwind
•Biomass–formedfromlivingsubstancessuchasagricultural
wasteorwood
•Geothermal–useshotsteamorwaterfromundertheearth’s
surface
•Hydroelectric–capturedfromwatermotionthanspinsturbines
••Solar–capturesandconvertslightphotonsthroughasolarpanel

4. Anenergytariffishowanenergysupplierchargesacustomerfortheirelectricandgasusage.There
aremanytypesofenergytariffsonthemarket,allwiththeirownprosandcons.Thecostofyour
energywillvarybasedonwhichcontractyouchooseandwhichsupplieryoudecidetogowith.
HowIsEnergyMeasured?
Thewayyourmonthlyenergychargeis
calculatedcanbebrokendownintotwofactors,
yourstandardchargeandunitrates.
AAstandardchargecanbedescribedasafixed,
consistentcostwhichcoversthesupplyof
energytoyou(e.g.maintenance,logistics).They
workinasimilarwaytobroadbandlineor
telephonecosts.
AunitAunitrateisthechargeforenergyyouuse,
measuredinkilowatthours(kWh).Thisapplies
tobothgasandelectrictariffs.Theexpense
itselfispairedwithastandardchargeonmost
contractsandisthechargethattends
fluctuates.
HHowever,somesuppliersmayofferaplanwithout
astandardcharge.Therearebothprosandcons
tothis.Oneadvantageofstandardcharge-free
optionisthatyouwillonlypaytowardsthe
energythatyouuse;whichmayworkoutwellfor
somebusinesses.Thedownsideoftheseplansis
thattheunitratecostisoftenmuchhigherthan
reregularcontracts.
Value-added-tax(VAT)willalsobeapartofyour
monthlybillinmostsituations.Mosthouseholds
willpayaVATchargeof5%,whilstmost
businesseswillpay20%.Therearesome
exceptionstothisstandard;reducedbusiness
VATratescanbeofferedtonot-for-profit
organisations,placesofworship,carehomesand
micmicro-businesses,tonameafew.
WHATISANENERGYTARIFF?

5. Thefollowingthingswillaffectthecostofyourenergybills,theyinclude:
•Thesizeofyourproperty–whetheryou’repayingdomesticorcommercialbill,largerpropertieswill
requiremoreheating.
•Theinsulationofthebuilding–bothhomesandbusinessescanhavetheirbillsimpactedbythe
qualityoftheproperty’sinsultation.Highheatlostwillresultinhigheroverallheatingcosts.
••Thebehaviouroftheproperty–yourindividualorgroupenergyusagewillvarybasedonyour
weeklyhabits.Agoodexampleofthisisthatelderlyresidentstendtohavehigherheatingdemands
overwinter.Anofficeexampleofthiswouldbeforgettingtoadjustheatingsettingstoturnoffin
out-of-officehours.
•Thetariffyouareon–eachtarifftypewilloperateinadifferentwayandsomemaybemore
expensivethanothers.
••Thesupplieryoucreateacontractwith–likeanymarket,differentproviderswillbeoffering
differentpricesoverenergyservices.Ifyouhaveacontractthatallowssupplierstochangetheir
costs,thiscanbeimpactedbythemarket’sdemand,generalenergysourceavailability,wholesale
costs,transportcostsandtheweather.
FACTORSTHAT
WILLAFFECTYOURENERGY

6. FIXEDRATETARIFFS
Asthenameimplies,afixedratetariffmeansthatyour
unitratewillstaythesamethroughoutyourcontract.
Thesekindsofcontractstypicallylastanythingfroma
yeartofiveyears.Optingforafixedratecanprovideyou
withthesecuritythatyouwillnotencounterany
surprises.
TThedrawbackofafixed-rateplanisthatyouwillnot
benefitfrompricecutsinthemarketandifyourenergy
usedrops,youwillstillhavetopaythefixedcharge.
Incontrast,avariabletariffmeansthatyoursuppliercan
changetheunitrateofyourplan.Unlikefixedrates,this
contracthasnoenddatemeaningitwillcontinueunless
youdecidetoexit.Ifyoudochoosetoleavethecontract,
youcandosoatanytimewithoutanycancellationfees.
PPlanslikearefrequentlyofferedwithanattractive,low
startingprice.However,energyusersmustbearinmind
thatthecostcangoupovertime.Togetthemostoutofa
variabletariffyouwillneedtokeepaneyeontheenergy
marketandswitchaccordingly.
Atrapthatbusinessconsumerscanfallintois
deemedrates.Theycarryaheftyprice,butcan
happenwhenyouaremovingtoanewpremise.
Ifyoudonothaveacontractagreedbythetimeyou
moveintoanewresidenceyouare'deemed'tobe
suppliedbythepreviousoccupant'ssupplier.
TTheywanttopreventdeemedratesistostart
arranginganewsupplierwellinadvanceofyour
move.
VARIABLERATETARIFFS
DEEMEDRATES
TARIFFS&RATESEXPLAINED

7. Out-of-contractratesoccurwhenanenergycustomer
failstoterminatetheircontractbeforeit'senddate.Asa
result,supplierswillautomaticallymoveyoutoarollover
contract.Thisarrangementhasthemostexpensiverates
andyoucangetlockedintothisforayear.
Thewaytoavoidthisistokeeptrackofyourexpirydates
andtostartthecancellationprocesswellinadvance.
Acappedrateisanadditionyoucanhavetoyour
fixedtariffs,tolimittheamountthatyouwillhave
topaytowardsyourunitrate.Whilsttheycanbe
generallyhigherthannon-cappedtariffs,theycan
protectyoufrompricerisesonthemarket.
TheEconomy7tariffisaspecialisedtariffthatallowsyou
topayareducedunitratefor7hoursatnight,compared
tothestandard17hoursinthedaytime.Planuserswill
needcoordinatetheirenergyusagearoundtheseset
timestogetthemostoutoftheplan.AnEconomy10
tariffsworksintheexactsamewayexceptyouwillhavea
reduceunitratefor10hours,ratherthan7.
Out-of-contractratescanhappenintwo
circumstances:
•Youtellyoursupplierthatyouwanttoend
yourcontractbutdonothaveanewplanin
placebythetimeitfinishes
••You'reintheswitchingprocessbutit
takesmoretimethanexpected.Asaresult,
youdon'tgetanewplaninplacebeforethe
contractisterminated.
SupplieSupplierscansetwhattheywantasan
out-of-contractrate,sopricestendtobe
twiceasmuchthemarketstandard.Theway
toavoidthisistopayattentiontoyourend
datesandstartplanningaswitchwellin
advance.
OUT-OF-CONTRACTRATES
CAPPEDRATETARIFFS
DUELFUELTARIFFS

8. ECONOMY7&ECONOMY10TARIFFS
TheEconomy7tariffisaspecialisedtariffthatallowsyou
topayareducedunitratefor7hoursatnight,comparedto
thestandard17hoursinthedaytime.Planuserswillneed
coordinatetheirenergyusagearoundthesesettimesto
getthemostoutoftheplan.AnEconomy10tariffsworks
Thesearetariffsthatallowcustomerstotop-upinadvance.
Thisisdoneusingacard,akeyortokens.Energyusersare
abletoswitchovertoprepaymenttariffsiftheyhaveupto
£500indebt,althoughthisamountvariesbetweensuppliers.
PREPAYMENTTARIFFS
HalfHourlyMetersareavailabletobusinesses,in
ordertotakeenergyrecordingsevery30minutes.
Thisletssupplierstakeveryaccuratereadingsof
yourusagetocreateatailoreddeal.Themost
savingsaremadewithbusinesseswhoconsumeover
HALFHOURLYMETERS
Agreenenergytariffisacontractwhichmeansthe
electricityyoubuyismatchedbypurchasesofenergyfrom
renewablesources.Bypayingforthisserviceyouare
increasingthedemandforgreenenergytohelptowards
environmentalefforts.
GREENENERGYTARIFFS

9. Mostpropertieswillcontainastandardmeterwhichusesabasic,mechanicaldisplay.Theywillrecord
theunitsofenergyonanhourlybasis.Toreadthismeter,notedownthenumbersfromlefttoright,
ignoringtherednumber.
STANDARDMETERS
ThesemetersarelikestandardmetersaccepttheywilluseandLCDdisplay.Toreadthismeter,note
downthenumbersfromlefttoright,ignoringtherednumberandanynumbersafteraspaceordecimal
point.
DIGITALMETERS
Incontrast,dialmetershaveaverydifferentappearance,usingamultipledialfeaturetodisplay
calculations.Toreadthismeter,recordthenumbersdisplayedfromlefttoright,ignoringthe1/10dial.
Ifadialhandisbetweentwonumbers,rounddowntothelowernumber.
DIALMETERS
PrepaymentMeterscanbethoughtofasthepay-as-you-gomodelofmeters.Theyallowuserstotop-up
paymentsinadvanceusingacardorakey.Thesemetersaregenerallyfoundinrentedproperties.
PREPAYMENTMETERS
SmartMetersarethemostadvancedmetersavailableandcanprovidetheuserwithextensive
informationabouttheirenergyusage.Unliketraditionalmeters,thispieceoftechnologyautomatically
sendsrecordingsandbillinginformationtosuppliers.Thismeansthatsmartmeterownerswillnotneed
totakefrequentreadingsandtheywillnolongerreceiveestimatedbills.
SMARTMETERS
HalfHourlyMetersareavailabletobusinesses,inordertotakeenergyrecordingsevery30minutes.
Thisletssupplierstakeveryaccuratereadingsofyourusagetocreateatailoreddeal.Themost
savingsaremadewithbusinesseswhoconsumeover100,000kWhperannum.
HALFHOURLYMETERS
Belowisalistofthedifferenttypesofenergymetersandhowtotaketheirreadings.Youwillneed
totakefrequentreadingstoensureyourenergybillisaccurate.Mostsupplierswillhaveanonline
portalwhereyoucansubmityourreadingsonline.Otherwise,itispossibletoprovideyourenergy
recordingsacrossthephone.
ENERGYMETERSEXPLAINED

10. HOWTOFIXFAULTYMETERS
Afaultymetercanbethesourceofalotofproblems.Youmayfindthatthemeterboxisdamaged
orthemeteritselfismalfunctioning.Unlikesomeelectricityissuesthatwe'remorefamiliarwith,
suchaspowercuts,brokenmeterscanoftenflyundertheradar.
Thankfully,therearesomesignstohelpspotabnormalities.
Youmayhaveafaultymeterifyouspotthefollowing:
•Youreceiveanunexpectedbill
•Yourregularpaymentseemshigherthanusual
••Yourprepaymentmeterisdisplayinganerrormessage(showing‘error’,‘callhelp’or‘battery’)
Whilstfaultscanberare,youshouldattempttofixyourmeterassoonaspossibletoavoid
runningoutofenergyoranyfurtheroverchargedpayments.
STEPSTOTAKE
TAKEAREADINGYOURSELF
Ifyouareonatime-of-usetariffyoushouldbeabletochecktheclocktoseeratechanges.You
canalsoinvestinanenergymonitortoseereal-timeusage.Anotherindicationofdefectswould
beifyourmeterisstillregisteringlargeamountsofenergy,evenifyouturnallyourappliances
off.Lastly,ifthenumbersonthedisplaydonotchangewithinhalfanhour,youwilllikelyhavea
faultymeter.
GETTINGYOURMETERTESTED
Topreventyourmeterfrommalfunctioninginthefirstplace,it’sagoodidea
togetyourmeterregularlytested.Youcancontactyoursupplieratanypoint
torequestareading.Acheck-upcanbearrangedtoyourscheduleandis
quicktoperform.Replacingametercanroughlytake3to4hoursfora
prepaymentmeterandlessthan5daysforacreditmeter.
BBothgasandelectricmeterscanbetestedandsuppliersarerequiredto
assistyouifyourequestit.Ifyourmeterneedstobetakenawaytobe
examined,youwillbefittedwithanewmeter,soyouarenotleftwithout
energy.Havingyoursuppliervisitforareviewwillcomeatnochargebutyou
mayhavetopayforremovalandreplacement.Ifyouhavebeenovercharged,
yoursupplierwillrefundyoufortheperiodinwhichyourmeterwasbroken.

11. UNDERSTANDINGYOURENERGYBILL
1.Youraccountnumber–youwillneedthisforanycorrespondencewithyoursupplier
2.Periodcovered–thetimeframeofwhichyouwerecharged
3.Totalamountowed–youroverallpaymentwithanyadditionalchargesanddiscountsapplied
4.YourMPAN(electricity)orMPRN(gas)–thecodeusedtoidentifyyourmeter
5.Waystopay–aguidetohowyoucanpayyourbillswithyourcurrentsupplier

12. CLAIMINGBACKMONEY&DISCOUNTS

13. Ifyouareonatime-of-usetariffyoushouldbeabletochecktheclockto
seeratechanges.Youcanalsoinvestinanenergymonitortoseereal-time
usage.Anotherindicationofdefectswouldbeifyourmeterisstill
registeringlargeamountsofeIt’seasyforbusinessesandhouseholds
aliketofallintoarrearsiftheydon’tkeepatrackofwhatthey’respending
onenergy.Amountingdebtscanbearesultofpoorsupplier
communications,forgettingtorenewacontractandendinguponpricey
out-oout-of-contractrates,changesinfinancialcircumstances,tonamejusta
few.
Thefirststepforbothresidentialandcommercialpropertyownersisto
checkthroughpastinvoicesforanomalies.Whilstuncommon,mistakes
canstilloccurinthepaymentprocessandyouwillbeabletogetthese
refundedinmostscenarios.
It’salsoverywisetospeaktoyourcurrentsuppliertogetabettermutual
understandingofthesituation.Youmayneedtoprovidesomefigureson
yourrecentspendinghabitsinordertocreateamanagementplan.The
supplierwillbeabletoreduceyourdirectdebitpaymentsuntilyouhave
clearedthearrears.
nenergy,evenifyouturnallyourappliancesoff.Lastly,ifthenumbersonthe
displaydonotchangewithinhalfanhour,youwilllikelyhaveafaulty
meter.
MANAGINGENERGYDEBT

14. Switchingyoursuppliereveryyearorsoiftheeasiestwaytosave
moneywithlittleeffort.Unfortunately,alotofenergyconsumers
donotrealisehoweasyitistochangeyourplan.
Thereareonlyafewstepsneededtoswitch:
1.Contactanenergysupplierforaquotationorenteryourdetails
inapricecomparisonsite
22.Viewandweightupseveralquotationsagainstyourexisting
contract
3.Confirmyourswitchonawebsiteoracrossthephone
4.Makesureyourlastsupplierisawareofthechangeby
contactingthemorsendingaterminationletter
THAT’SIT!
DDobearinmindthatyourexistingplanmaycomewithexitfeesif
youchoosetoendyourcontractprematurely(over49daysbefore
yourexpirydate).Alotofsupplierswillarrangeforyounewplanto
startatthebeginningofyourexpirydatetoavoidthis.
HOWTOSWITCHENERGYSUPPLIERS