The energy needs for the UK’s businesses and households come from gas and electricity, which – in the case of gas – is largely imported or provided by a network of more than 2,000 power stations. The power plants rely mostly on coal, gas and nuclear energy for their electricity generation, although some 4 per cent of UK electricity comes from renewable energy installations, such as wind farms and hydroelectric power.

Britain’s gas and electricity supply is divided into many different regions, which originally had only one energy supplier. After deregulation occurred in 1999, customers have been able to choose between a number of gas and electricity providers.

The easiest way to find out which provider supplies gas and electricity to a home or business is to look at the name on a recent bill. If this cannot be found, the Meter Number Helpline is always available on 0870 608 1524. An electricity supplier can also be found by contacting the distributor for the area in question. The electricity distributor can be found in any local phone directory.

Most areas give customers the option of a dual fuel plan, whereby both gas and electricity is supplied by the same energy provider. Such deals are usually cheaper than a single fuel plan, where different providers supply the gas and electricity, because with a dual fuel plan the suppliers usually offer reduced rates and discounts. There is also the advantage of only having to deal with one company in the event of any problems or queries.

Most gas and electricity providers levy a standing charge for their services – a fixed charge made for each day that the customer is connected to the energy network. The charge does not correspond to the amount of gas and electricity used but is meant to pay for the cost of maintaining the network. Occasionally you will find an energy plan without a standing charge, although these plans may charge more per energy unit. Gas and electricity bills are calculated according to how many units of energy are consumed, as well as the standing charge.

The basic unit of electricity is a kilowatt hour, which is displayed on the electricity meter. Gas meters display the volume of gas used in cubic feet or cubic metres, which are then converted into kilowatt hours by the gas companies. The price of a unit of energy depends on the pricing plan or the tariff of the household in question.

The amount displayed on the meter when it is read is subtracted from the amount shown at the previous meter reading to formulate the bill. If it is impossible for the meter to be read, an estimated bill is sent, based on a standard rate or past energy usage.