Understanding Your Business Energy Bill
Business energy bills can become confusing, so getting your head around them is very useful to ensure that you’re being correctly charged on your essential utility bills. When you receive your energy bill, whether it’s gas or electricity, it gives you an understanding of how much you’re spending each billing period. This is vital information you’ll need to tailor your energy usage to help you reduce costs.
What’s included in your business energy bill?
✔ Customer reference number/ Account number
✔ Billing period
✔ Electricity usage
✔ The amount you’re being charged per kWh
✔ Standing charges
✔ Any additional charges
✔ VAT and the Climate Change Levy (CCL)
✔ Payment due date
✔ Current contract end date
✔ MPAN number / MPRN number
How is your business energy bill calculated?
Understanding how your business energy bill is calculated does help you to understand why you’re being charged more than you expected.
The calculation to work out the cost of your bill is as follows:
✔ Your consumption multiplied by your unit rate
✔ Plus your standing charge multiplied by the period of billing
✔ Any additional industry charges
✔ Plus VAT and the Climate Change Levy
✔ Minus any discounts
Learn more about how business energy bills are calculated
Hidden factors in your energy bill
Most businesses pay their business energy bill without reviewing the range of valuable information that they have been given.
There are many different types of contracts and tariffs that can be complicated to understand.
How to measure efficiency progress using your business energy bill
If you have a smart meter, which you may well have since many businesses will have been moved to half-hourly meters, then you should be able to track your energy usage. If you still give manual meter readings to your energy supply, you should ensure that you keep your supplier updated on your energy usage each month.
This will help you to manage how much energy your business is using from month to month to better understand how your usage changes throughout the year, hopefully allowing you to spot areas where further energy-efficient measures can be put into place.