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Why is my advance payment charged at 20% VAT when I’m VAT exempt?

Since the advance payment is a non-energy charge and fully refundable at the end of your contract, it is always charged at 20% VAT.

If you use below 12,000 kWh per year on average, or qualify for reduced VAT and CCL exemption (i.e charities, care homes etc), your subsequent energy bills will always be at 5% VAT.