Understanding proration in billing: Your FAQs
What is proration?
Proration is the process of adjusting charges so that your prorated bill reflects the portion of the service you actually used.
For example, if you subscribe to a service in the middle of a billing cycle, instead of paying the full month, a prorated bill only charges you for the days you used it.
How does proration impact my bill?
Your electricity bill consists of a standing charge, unit rate, PSO Levy, VAT and any discount if you're under contract. Until recently, when any of these rates changed in the middle of your billing period, the new rates were applied only at your next full billing period. With proration, rate changes apply from the date of the change. You'll see your next prorated bill reflect the new rate for the remainder of that billing period.
For example, if your unit rate increases on day 25 of a 60-day billing period, proration means you pay the old rate for days 1-24, and the new rate for days 25-60.
How will this impact my current contract?
If your current contract ends, any discounts will stop on the expiration date. Proration ensures your prorated bill reflects any partial months, so you’re charged fairly.
To continue enjoying discounts, renewing your contract before it expires is recommended.
Why did I not get the full 12 months of my discount period?
This could be due to the crossover onto your new discount period from your old discount period within your billing cycle, as there was no proration in place at that time