What is an estimated bill?

When you receive a bill from your supplier, whether it be a Gas, Electricity or a Water Bill and next to both the current reading or the previous reading there is an (E), you then know you bill has been estimated.

There are three ways utility companies can calculate your energy bill:

1. They can read your meter and charge you for exactly how much energy you’ve used. (this scan be difficult if there is no access to your property). Shown by (A)
2. You submit your meter reading to the utility company, and they calculate your bill from the information you have sent them. Shown by (CR) or (C)
3. If 1 and 2 cannot be completed and you don’t have a meter reading, they will provide an estimated bill. This is where issues can happen, as without a meter reading it is difficult to know exactly how much energy has been consumed.

So, what is an estimated bill?

You get an ‘estimated’ bill when a meter reading has not been received. To estimate a bill there is a clever equation used, which is based on your past energy usage and what time of year it is.

However, because an estimated bill is purely estimate, there is every possibility that the bill consumption may be more or less energy than the actual. This will mean that you may have to pay or get paid the difference once an actual read has been received.

That is not good business practice. I have seen many issues where a customer was being estimated on there bills for nearly 5 Years and their revised bill was significantly high, because the supplier was not aware of any expansion on their business. Therefore, this is not the best way to pay your bills.

Customer Reads can be submitted at any time of the month and as many times. Depending how your business fluctuates. The estimated bill will never be an accurate approach and by submitting you own readings will ensure you only pay for the energy you use. Once suppliers have a portal or an email process to submit you meter readings and all the supplier will need is your email address, postcode, and your account number.

There has been a new technology roll out for ‘Smart meters’ with a smart meter, not only will we automatically read your meter for you, but you can also monitor and control your energy usage. However, it would be good practice to still provide a fixed meter read possibly annually.

Points to also be mindful of:

• If you are having difficulties paying your bills, the suppliers will work with you to implement payment plans. If you are forth coming very quickly, they will support you.
• Secondly, never stop your Direct Debit. By doing this it will impact on your credit and cause a dispute with the supplier.

Once, a customer reading has been submitted it could take up to 3 weeks before the account has been reconciled. But it is a worthwhile process to follow. B2B Energy Ltd. Recommend this is completed monthly.