Estimated billing is when an energy supplier calculates a bill using a predicted level of consumption rather than an actual meter reading. It is used when no current reading is available, and is corrected once a real reading is submitted or taken.
In one line: Estimated billing is when a supplier bills from predicted usage instead of an actual meter reading, later reconciled against real readings.
How estimated billing works
Suppliers estimate based on past usage and typical seasonal patterns. The estimate can be too high or too low, and the account is adjusted when an accurate reading replaces it, leading to a credit or further charge.
If an estimate assumes 300 kWh but the meter shows only 220 kWh was used at 25p per kWh, the household was over-billed by 80 kWh, or 20 GBP, which is refunded or set against the next bill.
Submitting a meter reading, or having a smart meter that sends readings automatically, prevents estimates by giving the supplier the real figure.
Estimated vs actual billing
An estimated bill is marked with an E and rests on predicted consumption, while an actual bill, marked A, uses a genuine meter reading and reflects true usage.
Persistent estimates can build up large balances, but the back billing rule limits how far back a supplier can recover charges left unbilled through its own delay.
Primary source: Ofgem: Get help with energy