In order to calculate the monthly payment we calculate your expected annual cost and divide it by 12, this means you pay equal instalments throughout the year and don't have fluctuating costs in the summer or winter. It doesn't mean your costs are fixed, if you use more or less energy than we predict your monthly payment may need to be adjusted.
Your monthly statement is made up of 3 key things
The Sero Life optimisation charge
This is £9.99 per month and pays for all of the Sero Life services.
Your energy usage
This is the total amount of energy you have used from Octopus energy, we estimate this based on your comfort settings and pay Octopus on your behalf. We monitor this closely, to make sure you aren't paying too much (or too little) and we will show you that you have not paid a penny more than you should for your energy usage.
Electricity standing charge
This is the cost of Octopus energy providing an electrical connection to your home, you pay this to us, we pay Octopus on your behalf at exactly the same rate. This charge applies regardless of your energy consumption.
To make budgeting easier we base our estimates across the entire year and then divide that amount into 12 equal monthly payments. That means you are paying for more than you use in the summer months, but it also means your monthly payments are unlikely go up in the winter.
For more information please see our Statement Explainer document here.