Business energy bills can contain several charges, readings and reference numbers. Once you know what each part means, it becomes much easier to check what you are paying for.
Your bill is also a useful management tool. It can help you spot changes in energy use, incorrect readings and unexpected costs.
Start With the Basics
First, check that the bill is for the right business, premises and billing period.
Look for:
- your business name and address
- supply address
- billing dates
- account number
- payment method
- amount due
- payment date
If your business has several sites, make sure you are looking at the correct supply.
Check Your Energy Use
Your bill should show how much electricity or gas you have used.
Energy use is normally measured in kilowatt-hours (kWh).
The more kWh you use, the larger the usage part of your bill will normally be.
Compare this figure with earlier bills. A large change may be expected because of weather, opening hours or business activity, but an unexplained increase is worth checking.
Check the Meter Readings
Your bill may show the meter readings used to calculate your energy use.
These could be actual readings, readings you supplied or estimates.
If the supplier has estimated your use, compare the reading on the bill with the meter.
An inaccurate estimate can mean you pay for more or less energy than you have actually used. Providing an up-to-date reading can help correct the account.
Your Meter Number
Electricity and gas meters have their own identifying numbers.
Check that the meter details on your bill match the meter at your premises, particularly after moving into a property or changing supplier.
This can help identify situations where the wrong meter has been linked to an account.
MPAN and MPRN
Business energy supplies also have reference numbers that identify the supply point.
For electricity, this is the Meter Point Administration Number (MPAN).
For gas, it is the Meter Point Reference Number (MPRN).
These identify the supply rather than simply the physical meter.
You may need them when changing supplier, discussing a problem or arranging a new contract.
Your Unit Rate
The unit rate is the price charged for each kWh of energy.
For example, if your electricity rate is 24p per kWh and you use 1,000 kWh, the energy-use charge would be £240 before other charges and taxes.
Check that the rate on the bill matches your contract.
If you have different rates at different times, your bill may show more than one unit rate.
Standing Charges
Many business energy contracts include a standing charge.
This is normally a fixed daily charge for maintaining the supply, whether you use much energy or not.
For example, a standing charge of £1 per day would add about £365 over a full year.
So, when checking your energy costs, look at the standing charge as well as the unit rate.
Other Charges
Business energy bills can include other costs depending on the contract, meter and type of supply.
Some may be shown separately, while others can be included within the rates you pay.
These can relate to areas such as:
- energy networks
- metering
- government schemes
- taxes and levies
- agreed supply capacity
- other contract charges
If you do not recognise a charge, check your contract or ask the supplier to explain it.
Climate Change Levy
The Climate Change Levy (CCL) is a tax on energy supplied to many businesses and public-sector organisations.
It normally applies to business electricity and gas, although exemptions and reduced rates can apply in some circumstances.
If CCL applies to your business, it may appear as a separate charge on your bill.
VAT
VAT can also be charged on business energy.
The amount depends on how the energy is being used and whether any reduced-rate rules apply.
Do not assume every business supply will be treated in exactly the same way.
If the VAT treatment on your bill looks wrong, check it with your supplier and seek tax advice where needed.
Check the Billing Period
Look carefully at the dates covered by the bill.
A bill covering an unusually long or short period can make the total look much higher or lower than normal.
When comparing bills, compare both the amount spent and the energy used in kWh.
This gives you a much clearer picture.
Compare kWh, Not Just Pounds
Your bill can rise even when your business uses less energy if your rates have increased.
Equally, your bill could fall because prices have dropped even though you are using more energy.
So, track both figures separately:
How much energy did we use?
and
How much did that energy cost?
This helps you tell the difference between a price problem and an energy-use problem.
Watch for Estimated Bills
Estimated bills can be useful when an actual reading is unavailable, but repeated estimates can cause problems.
If estimates are too low, your business may build up a balance that becomes payable later.
If they are too high, you could be paying more than necessary.
Where possible, make sure your supplier receives accurate readings.
Check Your Contract Dates
Your bill may show information about your current contract, including its end date.
Keep a separate record of this date rather than relying on noticing it on a future bill.
Business energy contracts can have important rules about renewal, switching and notice periods.
We cover these separately in Business Energy Contracts and Prices.
Multiple Business Sites
If your business operates from several premises, check each site’s bills separately as well as looking at the total cost.
One site may be using much more energy than another because of its size or activity. However, an unexpected difference can also point to waste, equipment problems or billing errors.
Comparing similar sites can be particularly useful.
Spot Unusual Energy Use
Your bills can help you identify changes that need investigating.
For example, look for:
- a sudden rise in kWh
- unusually high overnight use
- a large change from the same period last year
- repeated estimated readings
- unexpected new charges
- rates that do not match your contract
Do not assume every increase is a billing error. First, check whether something in the business has changed.
Keep Your Bills
Keep copies of your energy bills and contract information.
This gives you a record of your rates, readings and energy use. It also makes it easier to investigate a problem or compare a future contract.
A simple monthly record of kWh used and total cost can reveal trends that are difficult to see from individual bills.
If Something Looks Wrong
Start by checking the meter reading, billing period, unit rate and standing charge against your own records and contract.
Then contact the supplier if you cannot explain the difference.
Keep copies of bills, meter readings and relevant emails or letters.
Clear records can make a billing problem much easier to resolve.
Key Points
- Check the bill is for the correct premises and period.
- Compare meter readings with the meter where needed.
- Check unit rates and standing charges against your contract.
- Track energy use in kWh as well as the amount spent.
- Look for repeated estimates and unexpected charges.
- Keep a record of your contract end date.
- Investigate unusual changes rather than ignoring them.
Important Information
Energility provides general information to help you understand energy, household and business costs, services and ways to save money. It is not financial, legal, tax, technical or professional advice.
Prices, tariffs, grants, government schemes, regulations and other information can change. Costs, savings and calculator results are estimates and your actual results may be different.
Before making an important financial decision, signing a contract or carrying out significant work, check the latest information and consider getting advice from a suitably qualified professional where needed.
Energility may receive a commission or other benefit from some links or services. Where this applies, we aim to make it clear. This does not increase the price you pay unless stated otherwise.
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