Understanding your business energy bill is important as it helps you find ways to reduce costs and keeps you informed. Energy costs can be a significant part of your business’s monthly expenses and there are steps you can take to reduce them.
You should first understand the different parts of your bill, how providers calculate them and what options are available. This is key for increasing energy efficiency in your workplace. Our guide will go through all the key areas that make up an energy bill. Therefore, you can see exactly what money goes towards supplying electricity, gas, or other fuels to your premises.
- MPAN Number:
Your MPAN (Meter Point Administration Number) number is a unique identifier for your business meter. It is also known as an Electricity Supply Number and it is a unique number assigned to your business’s electricity meter. Energy companies use this number to determine your electricity rates. It also consists of 21 digits.
- MPRN Number:
A Meter Point Reference Identifier (MPRN), often known as your Gas Supply Number, is a unique number for the gas meter in your building. Your MPRN number will consist of 6-10 numbers in all, which energy suppliers will use to identify your gas meter.
Your MPAN and MPRN numbers can both be found at the top or bottom of your energy bills. However, if you want to find out what they are without your bill, you can call your supplier. Or you can use your postcode and put it on the find my supplier website.
The Billing Period
The billing period is the period of time over which your energy supplier charges you for your energy use. It may be monthly, quarterly, or annually. There are two main types of billing periods:
- The same as your contract period – this means you have a fixed-term energy contract with an agreed end date. By which time it will be automatically renewed unless you cancel it.
- Different from your contract period – this means that you may have signed up to pay for gas and electricity at different times within a year. Or different providers are supplying you with your gas and electricity.
Your Tariff and Charges
A tariff is a rate that energy suppliers charge for your electricity and gas. The charges are the total amount of money you will pay for your supply over a year. Plus, the standing charge is the cost of getting electricity and gas to your business. You pay for this no matter how much energy you use. The unit rates are how much it costs per unit (kWh) of electricity or gas that you use.
The tariff you’re on may be different depending on where your premises are. If so, this information should be on your bill. Otherwise, you may want to contact your supplier directly for more details about their tariffs and charges. You can also contact us to see what rates and suppliers may benefit you most.
These are important for you to comprehend when understanding your business energy bill.
Charges for additional services
Your energy bill should also include information about any additional services that you have requested. If you have added a meter, for example, it will be shown on this section of your bill and explained in more detail elsewhere. These charges may vary depending on how much power the new meter uses. VAT and the Climate Change Levy will also be shown and broken down for you to unpack. We will go into further detail about these charges in the next section of our guide.
The final part of your bill is an explanation of what it means for you as a business owner. This section will give details about how much money has been spent on electricity over the past several months. It will also show how many units your business consumed in that period. As well as whether there were any changes from previous bills due to special circumstances. The total amount due at this point is also listed with an explanation of how many days are left before payment is due again. So you can plan appropriately for paying your next bill.
VAT and Climate Change Levy (CCL)
- VAT: Goods and services have Value Added tax applied to them. The VAT in the UK is 20% of the sale price. You may be eligible for discounts, such as the 5% VAT rate. This will also appear on your account and contribute to the total amount you must pay.
- The Climate Change Levy (CCL) is an environmental tax that is applied to electricity generation, it applies to any finite fuel sources used. The UK government introduced it in 2001 to help offset the costs associated with climate change. For instance, reducing carbon emissions or paying towards renewable energy projects (depending on where your company’s electricity comes from). However, it does not apply to all businesses. Check the UK Government website to see which businesses are exempt.
Understanding your meter readings
A bill date is a date that your bill is issued. You typically receive a bill on a monthly basis. A bill number is a sequential number that begins with 1 and increases with each billing cycle. The VAT number is the amount of taxes owed on your final bill. If you have any outstanding balances from previous bills, they’ll be shown here along with any interest or penalties due.
Your reading type should be either electricity or gas – depending on what you use for power in your business. Understanding your business energy bill means that you should know your meter readings if you want accurate bills.
Let’s break down each section to make sure we’re getting good value from our energy bills.
The first section of your bill is the “bill number”, a reference number that the supplier uses to identify each bill. It doesn’t tell you anything about what the bill will cost. Although, it does let you know which bills are from different suppliers and when they were sent out.
The second section is the “business electricity supplier” part of your bill and includes information about who your energy provider is and their contact details. If there are any other suppliers operating near where you live (or have an office) then it’s worth looking at what they have to offer.
This could save you money on your bills down the line if one option offers better value than another. A good example here would be any suppliers that offer green energy for businesses. This is because renewable energy sources cut down costs on your energy bills. In addition to this, there are many other options of suppliers you can choose from. By contacting our staff, our team members can find you the most competitive deals.
The third section tells us how much we’re paying per unit consumed from our business electricity supplier; these figures depend on how much energy we use during each billing period so it’s important not to assume these values will always stay static over time without checking first! This statistic includes all costs associated with utilising a specific amount of power during the specified period, rather than just those relating to your consumption.
It’s always worth noting that your energy bill may look different depending on which supplier you are with. We can’t guarantee that these sections will be in the same place on your bill. However, all of the components should be present. If you require a detailed breakdown that you do not see on your invoice, you should contact your supplier.
Switch energy suppliers to get the best deal
To switch energy suppliers, you will need to contact our brokers. You should contact your current supplier and give them notice that you’re leaving once you decide who you’ll be moving to. If you do this a couple of months before your renewal date, they should have time to arrange for another supplier to take over the contract at the end of its current term. Once this is complete, you will be able to start using new suppliers’ tariffs and rates immediately.
However, it is always important to check how much notice you should give your current supplier before switching.
The easiest way to check if you are on a good deal is by comparing prices online or by speaking with an independent broker. They can help assess whether it would be worth switching suppliers based on your usage and circumstances. For example, if you use us to compare energy deals, our dedicated brokers can break down the costs of your potential rates.
If you use an online comparison site or broker, they will provide information about different tariffs. What you currently pay and other rates are compared. So all that remains is choosing which option suits you best!
As you can see, there’s a lot to consider when it comes to understanding your business energy bill. We hope that this article has given you some insight into how your tariff works and what charges will affect your bill. If you need any further information, we always recommend contacting your energy supplier.
But the best thing you can do right now to save money on your energy bill is to switch energy suppliers. Get in touch with us today to see what rates could be available to your business!