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Decoding Fuel Bills
Modern day utility bills seem so complicated, that you might regret not taking that quantum physics degree at Oxford.
But, you needn’t be so daunted. They are designed to provide accurate and vital information about what you are being charged. Ironically, in an effort to make things more transparent, they have to many people’s minds made them too complex and confusing.
And come what may, utility bills are invoices for goods (energy) and services (provision of energy) rendered, so don’t just throw it on the kitchen table and pay it when asked. As this will be a large part of your daily budget, understanding your bill is vital to your personal finances.
But what has made things more tricky over the years is the questionable tactic of estimating bills. Estimations – when the meter is not actually read, but the utility company estimates your consumption of a particular energy – is fraught with problems. Get it wrong, and it can mean a major fall-out between utility and customer.
But, let’s get back to the bill. There is a checklist that can be ticked off when you get your bill.
Firstly, is it your bill? This might sound daft, but everyone is capable of mistakes. Don’t end up paying the bill for your neighbours. Also, make sure they have the address right.
Next, take a gulp of coffee, or something stronger, and look at the total amount they are charging. First impressions are important. Too much, then you’ll have to figure out why. Too little, then don’t start the celebrations too quickly, as an estimated reading, on a low end, can mean trouble later on when they can an actual reading and expect the difference on a later bill.
Right, shocks over, pick yourself up off the floor and take a few minutes to check the detail of the bill.
Usually, your account number, or customer reference number, should come near the top. Compare it with an old bill and make sure it tallies.
If it’s an estimated reading, then it should clearly say so and provide dates for the estimated period. Always make sure that the dates tally and does not include anytime when you didn’t own the house. Also, the estimation will provide figures on what it was based; in other words, it’s a guesstimate of your meter. Make sure you go and have a look at your meter and take a reading yourself.
If it varies dramatically, either way, then it would be best to contact your utility and inform them. Because, if it’s in your favour and this continues for some time, then you can be assured that the day of reckoning will come.
If it’s not an estimation, then the readings should tally with what is showing on your meter. Have a quick look, bearing in mind that the meter will have recorded more use since the meter reader called, but, it’s best to make sure that they haven’t read something wrong.
Some meters show dual readings and meter readers have been known to get these the wrong way around and cause a nightmare when it comes to sorting out the charging.
Also, just a quick point on the meter, make sure that the meter serial number on the bill, matches the serial number on your meter. Again, you don’t want to be charged for someone else’s energy.
And after the meters, your bill should clearly state how many units of energy you have used and what you are being charged for each individual unit, and then any additional costs (such as the provision of the energy, or services), should also be shown clearly. VAT should be added where appropriate. Above all, the costs and calculations should be transparent. If you don’t understand them, contact your utility and get them to explain it you. The utility is obliged to make their bills understandable.
And make sure you familiarize yourself with the notes on the bottom, or the back of the bill, and these will usually explain all you need to know, and provide contact points if you need something explaining, or if you are having difficulty in paying. In either case, make sure you contact them quickly and explain matters.
So there you are, the basics of a bill are quite straightforward. You use energy, you pay for energy, usually in arrears. If only it were that simple of course. But, always check your bill as soon as you get it, otherwise it could cost you a lot of money and hassle.
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