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Gas and energy bills explained

Baxi's high efficiency boilers can help you reduce your energy bills.

We can help you understand your bills, which can be confusing. Here's how to decipher your next bill:

Estimated or actual?

It's not always prominent, but somewhere on every energy bill it will tell you whether your meter has been read or whether the reading has been estimated.

A small 'E' next to the latest reading indicates estimated usage, a 'C' tells you that you, the customer, took the reading and an 'A' (for actual) means that the energy supplier has taken a reading.

If your usage has been estimated, there's a chance you are paying too much. Read the meter yourself and let your supplier know - they'll send you a revised bill.

Usage figures

Often on the back of the bill, you'll find a detailed breakdown of your energy usage. Energy is measured in kilowatt hours (kWh), and you'll be able to see exactly how many units you have used during the bill period.

That figure is multiplied by a 'cost per kWh' to give you your pre-VAT total.

Two-tiered tariffs

On some energy bills, you will notice there are two different figures shown as the cost per kWh. This means you are on a two-tiered tariff, where the first proportion of your energy usage is charged at one rate, then the remainder is charged at another, lower rate.

This is a way for energy suppliers to include a minimum charge, even when your energy plan doesn't state one.


The total amount payable at the bottom of your bill is usually shown with VAT included. Note that VAT for domestic energy is set at a reduced rate of 5%, while businesses have to pay the standard rate of VAT.

Now that your energy bills are easier to understand, make them easier to pay. Discover Baxi's range of high-efficiency boilers, which can help you reduce your annual heating spend.

You can find out more about how you can reduce your annual heating spend on the Energy Saving Trust website.

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