Your energy bill is based on how much energy your home uses. Each home has meters that record electricity (and, where applicable, heating and hot water) used during the billing period. These meter readings are collected automatically and used to calculate your bill. The energy you use is charged at a set unit rate (price per unit of energy), and a daily standing charge is also added to cover the cost of supplying energy to the home, even on days when little energy is used. The total bill is the cost of your energy use plus the standing charge, with VAT included.