Estimated Annual Cost

  • PeterS's Avatar
    On one's monthly statement, there is a box which states ' Your estimated annual cost':

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    It ststes this takes into effect your expected annual usage and current tariff etc.

    However, does this also include the Government £400 support payments and current tariff reduction support- so in my example, the £1208 estimated annual cost is actually £1608?

    Also, if so, in this estimate have they 'predicted' their estimated unit costs of electricity for my tariff post ending of the Government support in April 2023 and incorporated that?

    Never having being 'top of the class' in maths, I am trying to work out how accurate their prediction is and perhaps asking for some of my built up credit to be returned.

    Sorry if this has been asked before - I cannot find a forum search box which may have been helpful.

    Many thanks.
    Last edited by PeterS; 12-11-22 at 15:30.
  • 9 Replies

  • JoeSoap's Avatar
    Level 91
    @PeterS

    My short answer is I don’t know. However, you may be able to have a go at estimating yourself.

    Down the right side of your bill you will see your estimated annual usage in kWh. You will have to multiply this by your full tariff rates, including VAT, and add the daily standing charge, also including VAT. You can then deduct the £66/67 monthly EBSS for the remaining months up to March.

    The problem comes in April. If you’re on a fixed tariff, you will, as a worst case, revert to that until it ends. If not then you could be facing a hefty increase in tariff rates of around 74% at current predictions.

    The problem is, we don’t know what’s going to happen. You can only do your sums with the info you’ve got, also taking your credit balance into account, and then negotiate with customer service to see what kind of rebate or DD reduction you can get.

    This is the best I can suggest but perhaps another member may be able to advise you better.
    I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit.
  • retrotecchie's Avatar
    Level 91
    @PeterS

    I'm with @JoeSoap on this one. Trying to fathom out how they determine the estimate, in monetary value is a bit of a black art at best and almost a complete stab in the dark at worst.

    Basing your consumption on units used rather than money spent, is often a better way to think. I just know prices have gone up 50% for me, so by reducing my consumption by 33%, I should break even compared to last year. Not allowing for inflation, naturally.

    Don't shoot me, I'm only the piano player. I DON'T work for or on behalf of EON.Next, but am willing to try and help if I can. Not on mains gas, mobile network or mains drainage. House heated almost entirely by baby dragons.
  • PeterS's Avatar
    Thanks both - am on netflex E7 variable tariff.

    I never saw the annual estimated unit bit tucked at the bottom of the other box.

    Using their estimated usage and standing charge - at today's current rates (incl VAT) gives me a total of £1204.70 per annum:

    1821.2 day @ 41.45p per kWh = £751.15
    2037.5 night @ 13.30 per kWh = £270.98
    s/c: @ 50.02 x 365 = £182.57

    Total: £1204.703


    So their 'estimated annual cost' isn't too far adrift - at today's prices, but doesn't take into account any future rises once the government's scheme ends in April 2023 by this reckoning.

    It also doesn't seem to take into account the £400 government payments.

    Thanks again.
  • Cinders's Avatar
    Level 1
    I gave up looking and relying on the estimated annual cost and even my estimated annual usage as from month to month the annual cost changes as do the units used.

    For example last March my estimated annual cost for Electric was £2140.03 but decrease to £1608.14 in my August statement but in my Sept statement it stated my annual cost would be £2608.74 however on my October statement my annual cost was £1765.37

    Don't even get me started on my Gas which went from an estimated annual cost of £2397.52 in March to £4142.77 in my September statement but in Octobers statement it was £2897.03. It's a bit of a mess to be honest.

    Anyway, my best guess (or I could be clutching at straws here) would be, that the estimates we are seeing now do take into account the £400 Government support payment and Octobers price cap but your guess is as good as mine!

    Which ever or what ever it is, you'd be better off working from your actual unit usage, than working from estimates or estimated annual cost and the best way to do that is to look back on your previous years usage (bills).
  • retrotecchie's Avatar
    Level 91
    @Cinders

    Remember that the estimate will also vary from month to month. My last two months estimated figures (Oct and Nov) look like this.

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    The estimate varies from month to month, depending on your meter readings...my estimates are going down despite price rises! Between October and November I seem to have knocked about £52 off my estimate.
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    Last edited by retrotecchie; 12-11-22 at 18:06.
  • retrotecchie's Avatar
    Level 91
    That said, a year ago and before the April and October rises...

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    Energy costs nearly doubled, innit?!
    Last edited by retrotecchie; 12-11-22 at 18:14.
  • JoeSoap's Avatar
    Level 91
    I guess we can agree that the estimated costs are arrived at by simple arithmetic involving estimated usage and current tariffs. I do understand from a trusted source that the £400 is not taken into account.

    I suppose we just have to work it all out for ourselves.
  • retrotecchie's Avatar
    Level 91
    @JoeSoap

    Get the bill, take the hit in the pocket. Reduce as much as you can. Live to fight another day. 😁