Advance payments and back payments for electricity and gas

In short: Instead of paying each month by consumption, you transfer monthly advance payments. Once a year the actual consumption is billed, and the difference is a credit or a back payment.

In more detail: The advance payment is an estimate based on the previous year. If it is too low, a large back payment results. If it is too high, the provider holds your money for longer than needed. A suitable advance is roughly (annual cost) ÷ 12.

Our context: The energy tool projects from meter readings and shows whether the advance you entered is too low, fitting or too high.

In Depth

• Adjusting: You may tell the provider about a changed advance when prices or consumption change (new heat pump, working from home).
• Reading the meter yourself: Reporting regularly avoids estimates and surprises.
• Checking: The annual bill lists last year’s consumption, prices and advances paid. Complain about deviations.
• Deadline: Annual bills must reach you no later than twelve months after the end of the billing period (for rental service charges: checking a service charge statement).
• Cannot afford the back payment? Agree on instalments with the provider before the reminder arrives (default interest and dunning).

See also: Electricity price: base price and unit price, Kilowatt hour (kWh)