Calculating my Energy Tariff before VAT to align to my bill - how do i do this.

yeti8

It doesnt matter which energy provider I am with I believe - as the scenario will be the same because its how the the two pieces of information are recorded on the bill - one inclusive of VAT and one exclusive of VAT - which to me is confusing and illogical.

So, my question - the Tariff Unit Rate per kWh for the Tariff name I am signed up to is shown as inclusive of VAT, e.g. for the Shell "Energy Price Guarantee v3 Direct Debit ebill", it is 32.400p. Yet when the usage is shown on the bill it is shown exclusive of VAT - rate (£) 0.30857. However, if I multiply 32.400p by 95% to show me the value minus the 5% VAT which is applied by the government, that equals (£) 0.3078. So can anyone please explain why there is a discrepancy with the (£) 0.30857 shown on my bill. Surely I would expect the two numbers to correlate?
Is there a calculation that I should do, which will align the two rates?

molerat

Your basic maths are wrong

32.4 divided by 1.05 = 30.857

100 is 95.24% of 105

95.24% of 32.4 = 30.857

yeti8

Thank you. I appreciate your time and help - I need to go back to school 😢

CSI_Yorkshire

yeti8 said:

Thank you. I appreciate your time and help - I need to go back to school 😢

You are certainly not the only one who has made the same mistake when moving percentages up and down.