It’s important to understand your energy bills for your business. This can help you to figure out the exact costs that are going towards electricity and gas. If you realize that the costs are quite high, then there are a couple of solutions you can choose including using Utility Bidder to switch to another energy supplier.
There are good chances that you may have noticed that the energy bills and the detailed information that comes with them can be confusing. This is the reason why you should always try to find out exactly what is on the business electricity bills. This article discusses everything you should know about business electricity bills.
The information on the business energy bill
Different energy suppliers structure their energy bills differently, though the important information is always the same. It means your business energy bill needs to have a bill date as well as a billing period. Remember that this bill can indicate the date that the bill was sent and the time of energy use that they are charging you for.
The bill can also have an account number that the energy supplier uses to identify your business. If you have a business that is VAT registered, then the bill will have a VAT number.
It’s also important for your bill to have the name of your tariff. This mentions the name of the electricity and gas plan. This can be the same, especially if you have a dual tariff for the same supplier for your electricity and gas.
A bill can also show the account balance brought forward. This applies if there is any balance that is outstanding from a previous bill. Also, a bill can display the gas and electricity usage. It’s worth noting that energy consumption is expressed as kilowatt hours. Therefore, this bill needs to show if this is an estimate or an accurate reading.
The charges in a business energy bill
The business energy bill comes with two key costs that are the amount of cash you need to pay for gas or electricity usage and the outstanding charge. That said, there are also various other costs that come on this bill.
Energy wholesale costs happen to be one of them. These costs refer to the money the energy supplier usually pays to purchase bulk energy before they sell it to you. But you cannot see this energy wholesale cost on the bill, though it is part of the unit rate. In most cases, when you use a fixed rate tariff, it means the energy bill can get higher once wholesale costs rise.
There can also be a climate change levy on your bill. This was introduced to encourage your business to be more energy efficient when it comes to your operations and solutions designed to decrease carbon emissions. This cost is usually charged per unit of electricity.
There is also VAT that is charged on electricity and gas. This is usually added to the energy bill for your business. Remember that there are some businesses that charge a reduced rate of VAT, so make sure that you find out if your business is eligible for this or not.
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