[Philby]

Hi All

On my statement for 16-21 October, these rates have been used for billing calculations:
Electricity 49.12 unit rate
Gas 14.06 unit rate

My tariff should be:
Electricity 33.73 unit rate inc VAT
Gas 10.33 unit rate inc VAT

That’s a 46% over-charge for electricity and a 36% over-charge for gas.

This is how they've worked my bill:

Electricity


Gas


I cannot replicate their calculations at all, no matter how much coffee I drink and now my head hurts.

In short, does this look right, or am I victim of a mishap?

I get that the EPG is applied separately, but I just can't square the figures.

Thanks

[meldrewreborn]

@Philby take the rate, take the government discount away and then multiply by 1.05 to apply the VAT. Post your results back here please.

[Philby]

@meldrewreborn
Rates are then exactly right. Thanks for that - If I had £45, I'd buy you some Lurpak 🤣

[meldrewreborn]

@Philby always happy crunching numbers!

[retrotecchie]

This is what annoys me. Tariffs quoted and standing charges are all quoted as a price including VAT, and yet when it comes to the billing, they use the prices without VAT and then add the VAT on as a separate calculation. As these are all domestic bills and very few, if any, of us can claim the VAT back, why not just produce domestic bills that don't have to split out the VAT and process that as a separate calculation?

For those of us who do work from home and are VAT registered and have to claim on expenses, our accountants are perfectly capable of doing the simple maths. Why make it so confusing for your run of the mill domestic customer?

Just a simple line at the bottom the bill stating 'all prices include VAT at 5%' would be perfectly adequate for most folk.

[meldrewreborn]

the total of vattable items has to be arrived at before the VAT is calculated -its been that way since VAT was introduced methinks.

[retrotecchie]

Ah yes, but the retail/domestic customer doesn't need to see that. Like your supermarket bill...you just need to know the bottom line. Whatever happens at the back end is all well and good, and I'm sure the companies have to do all that as part of their accounting.

We just want to see as the bill payer (n days x daily standing charge) + (m units x unit price) where n and m are the published prices including all taxes and adjustments for EPG, etc.

Not too much to ask, is it?

I know it's simple maths for those of us who do get it, and I do my own accounts and tax returns for my company so my 'leccy bill is a piece of cake, but it could be simplified a great deal for those who just want to know how many beans make five.

[GSimpson]

Originally Posted by retrotecchie

... the retail/domestic customer doesn't need to see that. Like your supermarket bill...you just need to know the bottom line. Whatever happens at the back end is all well and good, and I'm sure the companies have to do all that as part of their accounting. ..... Not too much to ask, is it? .....but it could be simplified a great deal for those who just want to know how many beans make five.

My sentiments exactly. Combine this with the other threads about tariffs being quoted with both unit rate and then the quoting VAT and ex-VAT prices and then at a high rate before the EPG is deducted. It seems as if EONext are going out of their way to be complicated.

[meldrewreborn]

@GSimpson

Customers want things to be simple. Sometimes things aren’t simple and need to be explained. E.On Next are not so good at that.

[retrotecchie]

@meldrewreborn @GSimpson

Let me demonstrate simple.

According to my online account:

Next Flex
33.97 p/kWh 49.17 p/day(All rates inc. VAT)

So the bill, simplified could look something like :


Last meter reading, on such and such a date:23456
New meter reading, on such and such a date: 23478
Units used 22
Billing days 31

Total energy cost 22 x 33.97p = £7.47
Total standing charges 31 x 49.17p = £15.24

Total charge this bill = £22.71

(All prices include VAT at 5%)




I think most folks could fathom that out.