How your energy bill is calculated

Each fuel's annual cost is your usage in kWh multiplied by the unit rate in pence per kWh, plus the daily standing charge multiplied by 365 days. The standing charge is a fixed daily fee you pay regardless of how much energy you use, covering the cost of supplying energy to your home. Electricity and gas are calculated separately using their own usage, unit rate and standing charge, then added together for the combined total. The Ofgem price cap sets the maximum unit rates and standing charges most suppliers can charge on a standard variable tariff, and it's reviewed every three months — so always check your latest bill or the current price cap for exact figures.