The order on the capping of estimated bills within the nesi matters arising
A very specific and technical question!
In the context of Nesi (New Electricity Supply Industry) matters arising, the order of capping estimated bills is crucial to ensure fairness and transparency in the calculation of electricity bills. Here's the general order:
- Actual Consumption: The actual consumption of electricity by the consumer is the first step in calculating the bill. This is the amount of electricity used by the consumer, as measured by the meter.
- Estimated Consumption: If the actual consumption is not available (e.g., due to a faulty meter or non-reading), the supplier may estimate the consumption based on historical data or other relevant factors.
- Cap on Estimated Consumption: To prevent excessive billing, the supplier may apply a cap on the estimated consumption. This cap is usually a percentage of the actual consumption or a fixed amount.
- Capping of Estimated Bills: The capped estimated consumption is then used to calculate the bill. The cap ensures that the bill does not exceed a certain amount, preventing excessive billing.
The order of capping estimated bills is typically as follows:
- First, apply the cap to the estimated consumption: The supplier applies the cap to the estimated consumption to prevent excessive billing.
- Then, calculate the bill: The capped estimated consumption is used to calculate the bill, taking into account any applicable tariffs, taxes, and other charges.
By following this order, the supplier ensures that the bill is calculated fairly and transparently, while also protecting the consumer from excessive billing.