Energy

How to Understand Your Energy Bill?

Recording Meter Readings regularly prevents inaccurate bills.

What bills are in a typical household budget?

• Electricity Bill
• Water Bill
• Gas Bill
• Credit Card Bills
• Phone Bills
• Insurance EMI e.t.c.

We understand our credit card bill. Credit card company can not charge us anything extra because we always check the bill once we receive it.

Phone bills — again, we know how much our monthly phone bills. In any month, if we receive a high bill, we immediately contact customer care.

We always pay our Insurance EMI timely.

Why don’t we understand the electricity, water, or gas bill? Why they always seem too hard to understand.

Energy is one of the basic day-to-day needs. Our day starts and ends with energy. People complained about the high energy bill. However, they don’t understand whether it is for their actual energy consumption or some bill's mistake. In this article, I am going to explain how to understand your electricity bill.

Let me tell you about my background first.

Background

I have around ten years of work experience in the energy sector, especially in the energy sector's commercial department. While I was working every month, over 50% of people's complaints about the exorbitant bill. Some complaints are genuine, but some energy bills are based on consumption.

I wanted to study more about Energy and explore how it works in other countries. So, I moved to Australia to earn my Master's.

Recent Personal Experience

Recently I shifted to a new house on 11th September 2020. The day I moved, I took the meter reading photo. As I live in the apartment, I couldn’t understand which one is my meter because there were six meters. I called the energy company and asked for the meter number.

I cross-checked the meter number and took a photo of the meter. I took the photo because it is a mechanical meter and I don’t know how to read the reading. See the picture below.

Google is my best friend. Most of the time, Google has answers to all my questions. I checked on Google how to read the meter reading of the mechanical meters. Boom, it took me 10 minutes, and I learned. I am always keen to learn new skills.

In Australia, we get quarterly bills. I got my first bill, and it was $724.79 for two months only.

I live with my partner. He goes to the office morning at 10 AM and comes back at midnight. I work 9–5 PM. There is no such use of electricity.

I complained about it to the energy company because of the following issues in my bill.

• I got the bill for only two months. Ideally, I should get a bill for three months.
• I got the bill for the reading, which I never consumed. How I know, because I took the starting meter reading photo. According to the energy company, my meter reading on 11th Sep 2020 was 77784 Kwh. However, as per the photo, I took the meter reading myself on 11th Sep 2020, 77958 Kwh.
• After complaining and providing proof, the energy company did not correct my bill. Initially, they told me to send the photo, and later on, they are saying we can not accept the image sent by the customer.
• After complaining 4–5 times, I emailed this to the Energy Ombudsman.
• Again, I got the wrong bill, but I stick to my point because I had the proof.

This time I got the bill which is just $268.86 for the period 11th September 2020–1st March 2021, which is nearly around five months and 20 days.

• This bill is also wrong. As per my calculation, I should have got the bill of around $550.00 for six months.

So, the point is there are flaws in every system. It is a recent example of how my energy provider and the ombudsman couldn’t rectify my bill correctly.

We should not rely on others for the correct bills. It is our primary responsibility to keep records of our energy consumptions.

Stick with me — I will tell you an effortless procedure, after which you can easily track your electricity, water, or gas bills. It is a straightforward step, and I think everyone should make a habit to do this.

Note down the starting meter reading. (Kwh)

Starting reading can be

• The day you are signing up with the service provider or,
• The day you are moving into the new house or,
• The day you start using the service or,

Today can be a day. Go and take the meter reading.

It is very simple, go and note the meter reading. If you don’t know how to read it, take a photo of the reading.

If you live in a complex where so many meters are there, you will find it challenging to find which one is your meter. Do not worry; call customer care and ask for your meter number.

Note:

If it is a Smart Meter and you don’t know how to take a reading, call customer care and tell them to send you your current reading via email or text message. Make sure you keep an authentic record in any form.

Note down the second reading. (Kwh)

If your billing is monthly, take a reading after a month. It doesn’t have to be exact after one month. +/- five days will be fine. If you don’t know how to take it, follow the procedure described above.

If your billing is quarterly, then take a reading after three months.

Note:

If you miss taking the second reading, don’t worry. Whenever you realise, take a second reading and pen down with the date. However, it is highly recommended to take a reading after a month.

Next step — Nothing. All done.

I told you it is straightforward.

Now calculate the consumption.

Let’s understand with the example:

Suppose the start reading is of 5th January — 1289 Kwh.

The final reading (second reading) is of 20th February — 1367 Kwh

The consumption is 1367 Kwh –1289 Kwh = 78 Kwh for 46 days

78 Kwh for 46 days

for one day = 78/46 Kwh = 1.695 Kwh

For 30 days = 1.695*30 Kwh = 50.87 Kwh

Now you have estimated how much is your monthly consumption.

Note:

Always consider seasonal variation, like in summer we use the air conditioner, and in winter we use a room heater.

Important Notes

• Sometimes, you can find the same reading for starting date and second date, or the readings are the same in the fourth month and the fifth month, which means the difference is zero consumption. But still, you got the bill for the same amount because the energy company gives you an estimated bill as per your previous consumption.
• Most of the time, their estimation is on the higher side. Now you have already become a master of estimating your bill, so again, double-check your bill 👀 👀.
• If the readings are wrong, send the meter reading to the energy company to update their records so that you should get the correct bill next month.
• Sometimes the meter stops working; tell your energy provider to replace the meter. It is crucial to take the old meter's final reading and note the new meter's starting reading. I believe now I don’t need to explain this point.

Check your utility bills now, and if you have any queries, feel free to reach out to me.

Happy to help.