The way we charge you for your energy consists of two components,
1. Standing charge (a fixed daily charge regardless of how much energy you use), and
2. Unit Rate (a charge based on number of kWh of gas/electricity you've used)
We calculate your gas/electricity charges by multiplying the amount of units you have used (or estimated to have used) by the tariff unit rate you are on (p/kWh) and add the daily standing charge (number of days supplied multiplied by tariff standing charge p/day) . We apply VAT (charged at 5%) afterwards.
This is a fixed daily cost that is used to cover the fixed costs of providing your home with both gas and electricity (a typical standing charge is in the region of 19p per day). It is charged on each meter, so if you have both gas and electricity there will be one change for each fuel supplied.
This charge goes towards keeping your home connected to the energy network, carrying out meter readings and maintenance related charges. Your standing charge also goes towards the cost of government initiatives and reducing carbon emissions for the cost to deliver electricity and gas to your home.
If you have a 'complex' metering arrangement we apply a separate standing charge for each meterpoint we supply.
We encourage monthly meter readings so that we never have to estimate your usage, however if we do not receive a meter reading from you at the end of the billing period, we will have to produce an estimated value in order to generate an energy statement at the end of each month.
The way we estimate your electricity usage is by using your Estimated Annual Consumption (EAC). This is an industry calculated number which is managed within a centralised industry database which estimates what the yearly usage that a particular meter is expected to be. Each electricity meter point in the UK has a corresponding EAC associated to it (a typical EAC for an ‘average’ home is 3,100 kWh each year).
We estimate your gas usage in a similar way to electricity, however the figure we use is called your Annualised Quantity (AQ). This is a number again is held within a centralised industry database and estimates what the yearly gas usage of a particular meter should be. Each gas meter point in the UK has a corresponding AQ associated to it (a typical AQ for an ‘average’ home is 12,500 kWh each year). Note, your AQ is always displayed in kWh but your gas meter records your usage in m3 or 100' ft3.
Both your forecast gas and electricity usage are regularly reviewed, and can be updated from time to time so you may see a difference in these figures on different energy statements. To find your usage estimates on your So Energy statement on page 2 on the right hand column, for more information check out our Guide: Understanding your energy statement:
If you don’t believe that these estimated values are reflective of your usage, please submit more meter reads.
Say you've used 750 kWh of gas and 180 kWh of electricity over a month (30 days)
Gas unit rate 3.00p/kWh x 750 kWh = £22.50
Gas Standing charge 21.00p/day x 30 (days) = £6.30
Electricity unit rate 15.00p/kWh x 180 kWh = £27.00
Electricity Standing charge 21.00p/day x 30 (days) = £6.30
Total (Ex. VAT) = £62.10
Add VAT (charged at 5%) x £62.10 = £3.11
Total (Inc. VAT) = £65.21
You should always check whether the unit rate and standing charge are including or excluding VAT. (In this example the unit rate and standing charge are quoted excluding VAT and this is being applied afterwards).