Here’s how we work out your bills Understand Make sense of our credit meter tariffs with different unit rates Fair See how all our customers pay a fair share of fixed costs Example Use our worked example to see how we calculate your gas bill Understand Fair Some of our credit meter tariffs have two rates for the units of gas and electricity you use (also called kilowatt hours or kWh): Some of our credit meter tariffs (and all our prepayment tariffs) have a daily standing charge that helps to cover the fixed costs we have to pay in supplying energy to you, e.g. distribution and metering costs. For our credit meter tariffs with no standing charge the money we collect through the primary unit rate goes towards these fixed costs. • Primary unit rates (labelled as ‘first’ on your bill) are charged at a higher rate • Secondary unit rates (labelled as ‘next’ on your bill) are charged at a cheaper rate The primary rate units are applied to individual billing periods (i.e. the periods reflected in your bills) as follows: • For electricity the primary rate units are charged evenly through the year at 8.33% (or 60.7 units) per month (that’s about 2 units a day), adding up to a maximum of 728 units a year. • For gas the primary rate units are charged on a seasonally adjusted basis, with more primary units being charged in the winter months, adding up to a maximum of 4572 units a year as shown in this table: Months Maximum units charged at primary rate per month • For electricity we charge the primary rate units evenly throughout the year because electricity use is more consistent across the year. We’ll charge you at the primary unit rate for the total number of primary units applicable for a billing period, as long as your total consumption is at least equal to the total allocation of primary units for that period, and regardless of your usage in the individual months in that period. Maximum percentage charged at primary rate per month Nov, Dec, Jan, Feb 882 19.30% March 272 5.94% April, Oct 271 5.93% May, June, July, Aug, Sept 46 1.00% Annual total • For gas we charge more units at the primary unit rate during the winter months to reflect the fact that most customers use more gas in the winter. We believe this helps to make sure that all our customers pay a fair share towards the fixed costs of supplying energy, and customers who use very little gas in the summer months won’t be subsidised by other customers. 4572 If you were previously on our Tracker, Fixed Price 2009 or Sign Online 8 gas tariffs your primary rate gas units are allocated differently across the months – you can find out more at npower.com/understandingprices or call Customer Service. Here’s an example. If we send you a bill for the period 1 July to 30 September, we’ll aim to charge a total of 138 primary rate units (46 units for each month). If no gas was used in one of those months, but your gas consumption for the whole billing period was at least equal to 138 units in total, then we’ll charge 138 primary rate units on that bill. However, if you used less than 138 units in that billing period, we won’t carry forward any uncharged primary rate units to the next billing period. Example Step 1 – Work out how many units you’ve used Subtract your previous meter reading from your current meter reading to work out the volume of gas used. If you have an imperial meter that measures your gas in cubic feet (with 4 dials), multiply this number by 2.83 to convert to cubic metres. If you have a metric meter (with 5 dials) there’s no need to do this. Then multiply this number by the Calorific Value and the Correction Factor, and then divide by 3.6 (round the answer to 1 decimal place) to give you the total units (kWh) charged on the bill. You can find the values for Calorific Value and Correction Factor on your bills. These figures can vary but are approximately: Calorific Value 40.0 Correction Factor 1.02264 Let’s assume your previous meter reading is 48400 and your current meter reading is 48800 So the volume of gas used is: 48800 – 48400 = 400 Multiply by the Calorific Value: 400 x 40 = 16000 Multiply by the Correction Factor: 16000 x 1.02264 = 16362.24 Divide by 3.6: 16362.24 / 3.6 = 4545.1 units So the amount of gas used is 4545.1 units Step 2 - Work out the number of units to be charged at the primary and secondary rate The primary units will be allocated as shown in the table opposite. Any remaining units will be charged at the secondary rate. Let’s assume the three-month bill period is 15 March to 14 June Work out the first month’s % at the primary rate Take the number of days in the first month and subtract the start day of the bill (March = 31 days) 31 - 15 = 16 Divide the answer by the number of days in the month: 16 / 31 = 0.516129 Multiply by the percentage for that month (as shown in the table opposite ) and round to 2 decimal places: 0.516129 x 5.94 = 3.07% So the first month’s proportion of the 4,572 units charged at the primary rate is 3.07% Work out the middle months’ % at the primary rate Use the full percentage for each full month (as shown in the table opposite) Second month (April) = 5.93% Third month (May) = 1.00% 5.93% + 1.00% = 6.93% So the total for the middle months is 6.93% Work out the last month’s % at the primary rate Take the last day of the bill and divide by the number of days in the last month (June = 30 days) 14 / 30=0.4666666 Multiply by the percentage for that month (as shown in the table opposite) and round to 2 decimal places: 0.4666666 x 1.00% = 0.47% So the last month’s proportion of the 4572 units charged at the primary rate is 0.47% Now calculate the total percentage to be charged at the primary rate for this bill Add all percentages together: 3.07% + 6.93% + 0.47% = 10.47% Multiply the total percentage by 4572 and round up to a whole number, to get the units charged at the primary rate: 10.47 / 100 x 4572 = 479 So the total number of units charged at the primary rate is 479 Step 3 - Work out the total bill Let’s assume our prices are primary rate 8.5p per unit and secondary rate 3.5p per unit Take the number of units at the primary rate (from Step 2) and multiply by the primary rate, then divide by 100 to convert into pounds and pence: 479 x 8.5 / 100 = £40.72 Take the total units (from Step 1) and subtract the number of units charged at the primary rate (from Step 2) to get the number of units charged at the secondary rate: 4545.1 – 479 = 4066.1 Take this number of units at the secondary rate and multiply by the secondary rate, then divide by 100 to convert into pounds and pence: 4066.1 x 3.5 / 100 = £142.31 Add these two together: £40.72 + £142.31 = £183.03 Now multiply by 1.05 to add VAT at 5%: £183.03 x 1.05 = £192.18 So the total bill including VAT is £192.18 Any questions? If you still have any questions, why not try looking for an answer on our website at npower.com/faqs Or you can call one of our specialist Customer Service teams: Direct Debit 0845 070 4851 Regular Payment Scheme 0845 070 4852 Quarterly cash/cheque 0845 070 4850 Please have your account number to hand when you call. We’re here to help you 8am to 8pm Monday to Friday and 8am to 6pm Saturday. Our top tips to help you be more energy efficient and caring for the environment. Tip 1 Tip 2 Tip 3 Getting your boiler regularly serviced could save you 10-15% of your energy bills according to the Carbon Trust. Learn more about npower’s boiler service and care products at our website. The Energy Saving Trust says by turning down your thermostat by just 1 degree could reduce your heating bills by up to 10%. Do your bit for the environment, switch to paperless billing from npower. For all this and more just visit npower.com Phone calls: We may monitor and/or record calls for security, quality or training purposes. Calls from BT landlines to numbers beginning with 0845 may be free. The price of calls may vary with other operators and calls from mobiles may be considerably higher. Please check with your operator for exact charges. npower is a registered trademark and the trading name of Npower Limited (Registered No. 3653277), Npower Gas Limited (Registered No. 2999919), Npower Northern Limited (Registered No. 3432100) who also act as an agent for Npower Northern Supply Limited (Registered No. 2845740) for the supply of electricity, Npower Yorkshire Limited (Registered No. 3937808) who also act as an agent for Npower Yorkshire Supply Limited (Registered No. 4212116) for the supply of electricity. Registered in England and Wales. Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB. npm9426/01.12

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