Energy bills explained
Lesson 1 of 12 in our free Bills & Subscriptions guide: a 5-minute money game with the key points below.
Reading is cool. Playing is cooler.
This lesson is a 5-minute game. Free, no sign-up needed.
The story so far
Mo: We used basically no gas in August and still got a bill. I've been scammed by the concept of heating.
Nana: That's the standing charge, love. A daily fee for being connected, whether you use anything or not.
Chip: Energy bill = standing charge (per day) + unit rate (per kWh you use). The price cap limits both — not your total bill.
Questions you'll answer
An illustrative electricity standing charge of 55p a day. Roughly how much is that per year?
55p × 365 = £200.75 a year before you've boiled a single kettle. That's why it matters.
The typical energy price-cap figure for Oct–Dec 2026 is £1,723 a year. What does that mean?
It's what a typical dual-fuel household paying by direct debit would pay; the cap limits rates, not totals. Yes. It's an illustration. Your bill depends on how much you use.
Quick facts
- Charged every day, even on holiday → Standing charge. It's a fixed daily cost for being connected.
- Goes up when you run the heating all night → Unit rate. More kWh used = more unit-rate cost.
- Measured in pence per kWh → Unit rate. kWh = how much energy you used.
- Measured in pence per day → Standing charge. Daily fee.