Gas and Electricity: the uSwitch guide

Use this page to find essential information about energy suppliers and gas and electricity bills.

For more information about some of the terms we use, click on the highlighted words or see our Energy glossary.

To find out how you could save money on gas and electricity by switching, compare energy suppliers now.

More than 2,000 power stations across the UK generate our energy. They are powered by coal, gas and nuclear energy. Around 4% of our electricity comes from renewable energy installations including hydro power schemes and wind farms.

The UK is split into different regions for gas and electricity. Originally, each region had only one option for their energy supplier. However since regulation in 1999, consumers have been free to choose who supplies their gas and electricity.

Your gas and electricity bills will tell you who your energy suppliers are. If you don't have access to bills and need to find out who your gas supplier is, call the Meter Number Helpline on 0870 608 1524.

To find out who your electricity supplier is, you'll need to contact the distributor for your area. Consumer Focus has a list of electricity distributors and the areas they cover. You should also be able to find your electricity distributor in your local phone directory under "Electricity".

With a dual fuel plan you get your gas and electricity from the same energy supplier. This usually works out cheaper than a single fuel plan where you buy your gas and electricity from different suppliers. This is because energy suppliers often offer discounts and reduced rates for dual fuel plans.

Plus, with a dual fuel plan, you only have to deal with one energy company if you have any queries or problems with your gas and electricity.

Compare dual fuel plans with uSwitch.

Energy suppliers offer a range of pricing structures for gas and electricity, known as plans. It's possible to have a combination of these plans. As well as standard, or default plans, these include:

• Economy 7 plans - where electricity used at night is charged at a cheaper rate
• Green plans - which are designed to help combat climate change
• Fixed plans - where the price of each unit of energy is fixed for a certain period.
• Capped plans - where the price of each unit of energy won't rise for a set period, but can go down if gas and electricity prices fall
• Online plans - with these gas and electricity tariffs you can sign up online or manage your account completely via the Internet
• Business energy plans - which are designed for commercial gas and electricity use. If you require a business tariff, simply contact our business energy team for a quote.
• Social plans - energy companies must provide these to help the most vulnerable consumers pay their energy bills. Social tariffs have to be equal to the energy supplier's cheapest deal.

If you opt for an Economy 7 plan, the electricity you use at night costs less than that used during the day. As a general rule, if you use at least 20% of your electricity at night, an Economy 7 plan can help you save .

To go on to an Economy 7 plan, you will need to change your meter to one with readings for day and night. Your energy supplier may charge you for this. If you want to switch from an Economy 7 plan, you'll also need to get your meter changed.

This is a fixed charge made by your energy supplier for each day you are connected to the gas and electricity network. It pays for maintaining your supply and isn't related to the amount of gas and electricity you actually use.

Some energy plans don't have a standing charge - this is often referred to as Nil service charge / No Standing Charge However, they may charge more per unit.

You can get online plans. These plans offer a way to make savings on your gas and electricity bills, with energy suppliers offering discounts for customers who opt for them.

Some plans only require you to sign up online to receive a discount, whilst others will need you to manage your bills and account online as well. You will usually be required to pay via direct debit with this type of plan. 

Green energy is electricity derived from renewable or clean resources such as hydro energy, wind energy, solar energy, geothermal energy and biofuels. Nuclear power plants do not emit carbon dioxide, and as a result are considered to be a green energy source.

Green energy plans work by providing electricity from renewable or clean sources to the National Grid, which will then be used to power your home.

Your energy bills are calculated on the basis of how many units of energy you consume. You may also pay a standing charge. When your meter is read, the energy company will subtract the amount shown on the previous meter reading from the most recent one to work out your bill. If your meter isn't read, you will get an estimated bill based on your past use or a standard rate.

Units of electricity are measured in kilowatt hours. This is shown on your electricity meter. Gas meters measure the volume of gas you used in cubic feet or cubic metres and the gas companies convert this into kilowatt hours. The price charged for each unit of energy varies according to what pricing plan or tariff you are on.

Your gas and electricity bills should give:

• your current meter reading
• your last meter reading
• the amount of electricity or gas you've used
• the period this covers
• VAT charges
• unit costs.

Further reading: how to read and understand your energy bill.

Energy suppliers offer discounts for customers who pay by direct debit, making this the cheapest way to pay your bills. You can choose a fixed direct debit, where you pay the same amount monthly or quarterly, spreading your energy payments over the year, or a variable direct debit, where you pay at regular intervals based on the amount of gas and electricity you've used.

You can also pay for gas and electricity by:

• cash
• cheque
• standing order
• prepayment meter
• credit or debit cards.

To avoid inaccurate estimated gas and electricity bills, Consumer Focus (formerly Energywatch) recommends that you call your energy supplier with your actual meter readings when you get your bill. This ensures that you make any savings you're entitled to and don't get any nasty surprises when your energy supplier reads your meter.

MPRN (meter point reference number) and MPAN (metering point administration number) are the unique reference numbers for your gas and electricity supplies.

The MPAN is also called a "supply number" or "S number". You can find it on your electricity bill. If you don't have a bill, contact your energy supplier.

Your MPRN, also called an "M number" can be found on your gas bill. If you don't have a bill, contact the Meter Number Helpline on 0870 608 1524 and ask for your number.

• (E) estimated reading
• (A) actual meter reading
• (C) your energy supplier has used the reading you provided (or this can mean "company estimated read")
• (R) a final reading from a meter that has now been removed
• (N) the first reading from a new meter
• (F) a final meter reading when leaving a property, discontinuing a supply or switching energy supplier.

First, you need to contact your energy supplier and go through their complaints procedure. If you need advice, go to Consumer Direct or call 08454 04 05 06.

Biomass
Biomass is a type of renewable fuel derived from plants. It is increasingly being used to generate electricity. You can also buy biomass stoves and boilers.

Business plans
Commercial gas and electricity use is different from home energy use, and is usually higher. Energy suppliers offer gas and electricity plans especially designed for businesses.

Capped plans
With a capped plan, the amount you pay for each unit of energy will not rise for a set period of time, but may go down if gas and electricity prices fall.

Consumer Direct
Energy consumers can get information and advice on energy issues from Consumer Direct, which is operated by the Office of Fair Trading. Go to Consumer Direct or call on 08454 04 05 06.

Consumer Focus
Energywatch, the independent watchdog for consumers, was merged in October 2008 with Postwatch and the National Consumer Council to form Consumer Focus. Consumers can now get information and advice on energy issues from Consumer Direct, which is operated by the Office of Fair Trading.

Direct debit
Direct debits are regular payments taken directly from your bank account. Because they save on administration costs and ensure bills are paid on time, energy suppliers offer discounts to customers who pay by direct debit, making this the cheapest way to pay your gas and electricity bills.

Dual fuel
With a dual fuel energy plan, you get your gas and electricity from the same energy supplier. This usually works out cheaper. More about dual fuel.

Economy 7
With this electricity plan, electricity you use during the night costs less. As a general rule, you'll need to be using around 20% of your energy consumption at night to make a saving on an Economy 7 plan. More about Economy 7.

Energywatch
The independent watchdog for consumers was merged in October 2008 with Postwatch and the National Consumer Council to form Consumer Focus. Consumers can now get information and advice on energy issues from Consumer Direct, which is operated by the Office of Fair Trading.

Estimated bills
Your gas and electricity supplier usually estimates your monthly energy consumption based on what you've used in the past or a standard usage. You pay for estimated consumption each month or quarter.

You'll find out how much gas and electricity you've actually used when your energy supplier reads your meter. You'll then be asked to pay more if you've used more than estimated.

Fixed price plan
With a fixed plan, the amount you pay for each unit of energy is fixed for certain period of time. This means you're protected if gas and electricity prices go up.

Green energy
This is energy derived from renewable or clean source, such as hydro energy, wind energy, solar energy and biofuels.

Hydro energy
Hydro energy is generated from moving water, which is most often done using hydroelectric dams. These dams use falling or flowing water to rotate turbines, which in turn run a power generator.

Kilowatt hour (kWh)
Units of electricity are measured in kilowatt hours (kWh). One kilowatt hour is 1 kilowatt (1,000 watts) of electricity. used for one hour. Electrical appliances are rated in watts or kilowatts. So, if you use a 1,000 watt appliance for an hour, you will have used 1 unit of electricity. Gas companies convert the figure shown on your meter into kilowatt hours.

Nil service charge / No Standing Charge
Some plans don't have a standing charge - a fixed charge made by the energy supplier for every day you are connected to the gas and electricity network. This type of plan is referred to as nil service charge. However, they may charge more per unit of electricity or gas.

Online plans
Gas and electricity plans that are predominantly managed via the internet. Many plans will only require sign up online and will allow customers to continue to receive paper bills.

Ofgem
Ofgem is the regulator for the gas and electricity markets in Britain.

Prepayment meters
With a prepayment meter, you pay for your energy supply when you use it. Although prepayment meters are often used for help with budgeting, uSwitch and Ofgem research shows that they are often more expensive than low-cost online gas and electricity plans. More about prepayment meters.

Renewable energy
This is energy that comes from sources that renew themselves naturally - for example, water, wind and the sun.

Single fuel plans
You have a single fuel plan when you buy your gas and electricity from separate suppliers. This is usually more expensive than opting for a dual fuel deal, but you'll need to check to be sure.

Social plans
Energy companies must provide these plans for their most vulnerable customers. They must be equal to the energy suppliers cheapest deal. If more than 10% of your income goes on fuel, you may be eligible for a social plan.

Solar energy
Solar energy is energy from the sun. It can be used to provide heat for water heating systems and to generate electricity using solar photovoltaic panels.

Standard plans
These are the default energy plans - in other words, what you will have if you haven't chosen another type of gas and electricity plan. The precise structures of standard plans vary depending on the energy supplier, but they are usually among the most expensive.

Standing charge
This is a fixed charge made by your energy supplier for every day you are connected to the gas and electricity network.

Tiers
Energy suppliers often use tier-based billing systems, particularly if you choose a plan without a standing charge. You are charged one price for using gas and electricity units up to a certain amount, and another price for those exceeding it. The second tier costs are usually lower.

Wind energy
Energy from the wind is used to drive turbines and generate electricity.