How to Understand Your Business Electricity Bill
Do you want to know more about how to understand your business energy bill? Doing so is a crucial step in finding ways to save money. However, these bills can often be detailed and seem overwhelming. So, we’ve put together a helpful guide to help you understand your bills and learn how to save money on energy.
If you would like to read more information or learn more about the pricing of business energy, you can do so here .
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What information is provided in your business electricity bill?
Firstly, it’s essential to understand what data is provided to you in your business energy bills. This is sent to you at the end of each billing period, which depends on the particular agreement you have with your supplier. Here is a rundown of the essential information:
Consumption chart: Many suppliers will attach a graph of your energy consumption for the billed period. This is useful to figure out where you are consuming energy most and whether there’s a solution to improve that problem.
MPAN and MPRN Numbers: These numbers are the unique reference numbers for your energy and gas bills, respectively. It’s essential to keep these stored if you need to switch suppliers or move house. Suppose you want a deeper understanding of the MPAN and MPRN numbers, head over to our helpful guide here. (link to MPAN and MPRN article).
Invoice Summary: This part breaks down the total costs of your bill, which you have to pay at the end of the billing period. The total charges are fixed and consumption charges, additional charges, climate change levy (CCL), and VAT.
CCL: Climate change levy is a charge implemented by the UK government on every non-renewable energy unit your business consumes.
There’s a 20% VAT charge applied to the energy consumed by your company. However, you only pay 5% of your business consumes less than an average of 33 kWh electricity or 145kWh of gas per day.
Unit rate: Your electricity bill will notify you of the value charged per kWh of electricity or gas your business consumes.
Standing charge: This figure refers to the amount charged for supplying the energy to your business.
Meter readings: The bill will either provide the latest meter readings or an estimated figure depending on when your supplier was last updated. Make sure you’re paying the correct amount by checking if the numbers match.
Total amount: This is the final amount to be paid by your business for energy consumed over the specified period.
The unit rate and standing charge are perhaps the two most important pieces of information you should be aware of on your bill. It’s usually these two that most affect your final energy bill cost. You should use these two figures when negotiating for a better deal from your current provider or switching to a supplier that offers lower rates.
Why it’s essential to understand your business energy bill .
As evidenced by our list, there’s enough information in your bill to enable you to compare rates and find better deals. Most companies choose not to explore new energy providers due to thinking it’s a complicated process. However, if you have the correct information, you can quickly get quotes on the market and see if there’s a better deal for you.
If you’d like to allocate this job to a third party, you can. Energy brokers and agents will act on your behalf to find you a better energy deal, either with your current provider or a new company.
Quick tips on how to save money on your business energy bill
If you’ve gone through your energy bill and think you’re paying too much, here are some quick tips on how to save money:
Switch providers
As mentioned above, get multiple quotes from other suppliers and compare them with what you’re paying. There’s almost always a better deal on the market, so be sure to shop around. You can do this yourself or hire a third party to negotiate on your behalf.
Switch to energy-saving bulbs
Newer energy-saving bulbs consume between 70% to 80% less electricity than older bulbs. They also last longer, making it a worthwhile investment that pays off in the long run.
Replace desktops with laptops
Laptops consume much less electricity than desktops, in some cases reaching up to 80%. Implementing these will also allow your workers to be better suited to the increasingly popular hybrid work environment.
You can read some more advice from the UK Gov on understanding your energy bill here.
Other useful links about business energy
Corona Energy
Contract Natural Gas (CNG)
British Gas and the Alternatives
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