Understanding your annual bill: instalments, back payment, credit

How a bill is built up

Most bills follow the same pattern. At the top are the customer number (Kundennummer), the period and the address of the supply point. Then come meter readings and usage, the prices, the total of all costs and the comparison with your monthly instalments (Abschläge). At the end it says whether you have to pay more or get a credit, and how high your new instalment is.

The details that count

For a tariff comparison we mainly need these details. They are all on the bill:

• Provider and customer number
• Meter number (Zählernummer) and, if available, the market location ID (Marktlokations-ID)
• Billing period and usage in kWh
• Unit rate (Arbeitspreis) in cents per kWh and standing charge (Grundpreis) per year or month
• Monthly instalment and invoice amount
• Name and supply address

Unit rate and standing charge

The unit rate applies to every kilowatt hour used. The standing charge is a fixed fee that you pay even with low usage. Check whether the prices are given gross, that is with VAT, or net. If the price changed during the billing period, the bill often shows two lines with different periods.

Instalment, back payment, credit

The monthly instalment (Abschlag) is an advance payment, estimated from your previous usage. Once a year, what you really used is settled. An example: you pay an instalment of 80 euros for 12 months, which makes 960 euros. The bill comes to 1,120 euros. Then you have to pay 160 euros back (Nachzahlung), and your instalment is recalculated.

If you have paid too much, you get a credit (Guthaben). It is refunded to you or set against the next instalment. Do not cut the instalment sharply on a hunch, or next year there will be another back payment.

Why a back payment can arise

Usually it is one of three things: you used more than estimated, the price has gone up, or the instalment was too low from the start. If the price goes up, a switch can be worth it, see special cancellation after a price rise.

Interim and final bills

When you switch or move out, you get a final bill (Schlussrechnung). It settles up to the cut-off date, based on the meter readings on that day. That is why the photo of the meter on the switch day is worth it: you can use it to check the figures. If the price was changed during the year, there can also be an interim bill (Zwischenabrechnung).

What you can check

• Do the meter readings match your own reading?
• Is the period about a year long?
• Does it say “abgelesen” (read) or “geschätzt” (estimated)?
• Is the usage plausible compared with last year?
• Do the prices fit your tariff?

If the bill is wrong

If the bill shows wrong meter readings or implausible usage, object in writing to your provider and enclose your photo of the meter. If that gets you nowhere, you can turn to the energy ombudsman (Schlichtungsstelle Energie), www.schlichtungsstelle-energie.de.