What is a reconciliation or settlement charge on my energy bill?
It is an after-the-fact adjustment. Your supply is initially settled against estimated volumes; when real meter data arrives, the industry reconciles the difference and the supplier passes the adjustment to you. It is legitimate in principle, but it should be evidenced, and a large one on a fully fixed contract is worth questioning.
Last reviewed 2 September 2026 by Utilities Made Simple · independent, whole-of-market, supplier-paid — how we are paid
Why it exists
Electricity is bought and settled in half-hourly blocks across the whole market. For meters that are not read continuously, the industry works on estimated profiles first and trues up later, in a series of reconciliation runs stretching over many months. Gas works on a similar principle through annual quantity adjustments.
When it is fair and when it is not
- Fair: you are on a pass-through or half-hourly contract that explicitly passes reconciliation through, and the adjustment is backed by actual meter data.
- Worth challenging: you are on a fully fixed contract that was sold as covering all these costs. Ask which contract clause the charge is levied under.
- Worth challenging: the adjustment is not supported by actual reads, or covers a period before you occupied the site.
What to ask for
Request the actual meter data the adjustment is based on, the period it covers, and the contract clause that permits it. Three specific questions in one email tend to get a straight answer. If the answer does not come, or the charge is not supported, dispute it in writing and escalate.
How to reduce the chance of it
Reconciliation charges are largest where meter data is poor. Getting reads submitted, or an automated meter working properly, keeps the estimate close to reality and the true-up small.
Ask an energy specialist
If your question is not answered above, send it to us. A specialist answers personally, normally within one working day. No sales call, no obligation — and if the answer is "your deal is fine", that is what you will get.
Want this checked against your own bill?
Email a recent bill to info@utilitiesms.co.uk and a specialist will check your rates, VAT, levies and contract end date against the live market — free, usually the same working day. If your deal is already good, we will tell you to keep it.