Lesson 8. Electricity. gas and water

Some people say ‘you don’t get ’owt for nowt in this life’. Most things have to be paid for and that includes the electricity, gas and water you use in your home.

The amount of electricity, gas (and water in some homes) used is recorded on a meter. The meter is read every 3 months and a bill is sent. An electricity bill could look like the one below:

Payment

Some people simply pay their bill when it arrives. Other people arrange to pay part of their bill each month. They are often given a small discount if they arrange to pay the bill each month.

 EXAMPLE:

Ally has received his electricity bill:

present reading = 61982 previous reading – 60732

cost of one unit of electricity = 7.6 p.

VAT is 5%.

How much does Ally have to pay?

units used = present – previous =

61982 – 60732 = 1250

cost of unit =

1250 × 7.6 p = 9500 p = £95.00

VAT is 5% of £95.00 =

⁵/₁₀₀ × 95.00 = £4.75

Total bill = £99.75

Test lesson 8

• Test

Other lessons:

Lesson 1. Wages
Lesson 2. Wages-overtime
Lesson 3. Pricing your holiday
Lesson 4. Money for your holiday
Lesson 5. Mobile phones
Lesson 6. Bank accounns
Lesson 7. VAT - Value Added Tax
Lesson 9. Credit - 1
Lesson 10. Credit - 2
Lesson 11. Credit - 3
Lesson 12. Which is better value?
Lesson 13. Car insurance
Lesson 14. Income tax
Lesson 15. Buying a house
Lesson 16. Council fax
Lesson 17. Old age pension