There are actually up to *four* "conversion factors" which are now being confused in this thread:
- Imperial to metric conversion: since 1992 all gas bills have been based on usage in cubic metres. As most gas meters still read in "units" of a hundred cubic foot the metered consumption (difference between the "current" and "previous" readings) is multiplied by 2.83 to convert to cubic metres. This conversion factor is constant, and clearly does not apply if you have a metric meter, which reads directly in m^3.
- The volume conversion factor or VCF. This is a constant multiplier with a value of 1.02264 and is an adjustment for temperature and pressure. The VCF was first introduced during 1997 along with a corresponding reduction in the gas price. I'd be interested if anyone knows the detailed reasons for its introduction, but its existence seems to be an admission that metered gas volumes had previously been slightly low - presumably because the temperature and pressure at which meters are calibrated don't quite match actual supply conditions.
- The calorific value. This is the energy content of the gas and is the only factor which varies from bill to bill. The value used is a legal "declared" value of the fuel's gross calorific value (GCV) in units of megajoules (MJ) per cubic metre.
- Conversion from megajoules to kilowatt-hours. Gas is priced in kilowatt-hours (kWh) so the calculated energy consumption is next divided by 3.6 to convert from MJ to kWh.
So, for an imperial meter, the billing calculation is essentially
charge = (current - previous) * 2.83 * 1.02264 * GCV * price / 3.6
or, for a metric meter,
charge = (current - previous) * 1.02264 * GCV * price / 3.6
then add VAT at 5%.