Explaining what your business energy bill means

As experts in helping UK businesses manage energy bills and costs, we know how easy it is to misunderstand some of your billing or to glaze over important details. Our aim is to make your business energy bills as easy as possible to understand and manage, ensuring you get the best value from your contract. Here, we’re providing a clear breakdown of what your business’s energy bill means, to help you understand where expert advice like ours might come into play.
 

How to read your business energy bill

Energy bills can contain a lot of information, so knowing how to read them can help you keep track of costs, check for errors, and avoid hidden charges. Here’s what to look for in a typical bill:

• Bill details: Basics like the bill date, bill number, and VAT number will always be on your bill, as they are important for record-keeping. Your VAT number is especially important if you need to submit VAT reports.
  • This will include your account number: a unique number that identifies your business and helps the supplier find your details quickly if you have questions or issues with your bill.
  • It will also likely include the site details: this lists your business address and may include details for each site covered by the bill, which is useful for businesses with multiple locations.
  • You may also find an emergency phone number: this includes important contact numbers for emergencies, like a gas leak or power outage. Make sure your team knows these numbers for urgent situations.

• Charges: You’ll find a breakdown of current charges, including the total for this billing period and any outstanding balance. Charges may be marked as “estimated” or “accurate.” If they’re estimated, they might not reflect your actual usage, so consider submitting your own meter readings to avoid overpaying.
  • Billing period: This shows the time covered by the charges. Accurate billing periods ensure you’re only paying for the energy you’ve used.

• Total amount due: This is the total of all current charges, including any outstanding amounts and VAT. If you’ve missed a payment or overpaid before, these amounts will be included here too.

  

• MPAN/MPRN number: Also known as the “meter point” number, this unique code helps your supplier locate your specific meter and property. MPRN will appear on a gas bill, and MPAN on electricity.

  MPRN stands for Meter Point Reference Number. It may also be called an “M number” and consists of between six and ten digits.

  MPAN stands for Meter Point Administration Number. It is sometimes also known as a “supply number” or “S number.” The MPAN is 21 digits long and starts with the letter ‘S’; however, you will only need the last 12 or 13 digits on the bottom line.

  

What makes up your energy bill costs

Your business energy bill includes several components, many of which you can’t control directly. But understanding these factors can help you assess your costs and find potential savings:

• Business energy suppliers: Suppliers buy electricity and gas on the wholesale market before selling it to customers. Market rates affect your charges, though fixed-rate tariffs can protect you from price fluctuations.
• Transmission Use of System charges (TNUoS): These cover the cost of transporting energy across the national grid. TNUoS charges are often included in your unit rate and/or other fixed charges such as your standing charge or capacity charge, and can vary based on your location and usage.
• Distribution Use of System (DUoS): Once energy reaches the local network, DUoS charges apply. These vary based on your contract and energy use.
• The Climate Change Levy (CCL): This government tax encourages businesses to reduce carbon emissions and is based on energy usage. You can become exempt from the CCL, but this depends on how much your business has done to improve your energy efficiency.
• Value Added Tax (VAT): VAT is charged at 20% on most business energy bills. However, charities and some small consumers may qualify for a reduced rate of 5% if they use less than 33 kWh of electricity or 145 kWh of gas daily.

How to make sure you’re not paying too much

Reviewing your bill regularly can help you find potential savings. Here are some common issues to watch out for:

• Check your tariff: If your contract is about to end or you’re on a variable tariff, you might be paying too much. Fixed-rate tariffs usually offer more stable prices, making it easier to budget.
• Look for estimated charges: Estimated charges can lead to overpayments, especially if your actual usage is lower than the estimate. Regularly submitting accurate meter readings can help avoid these issues.
• Optimise your usage patterns: Reducing peak demand times or moving energy-intensive tasks to off-peak hours can lower your costs, particularly if you have a time-of-use tariff.
• Consider bill management benefits: Efficient bill management can improve cash flow, streamline payments, and reduce paperwork. Digital tools can automate many processes, cutting down on manual tasks and enhancing security. World Fuel can help you find the right options for your business.

How World Fuel’s energy consultants can help you manage your bills

World Fuel provides dedicated support for businesses looking to cut energy costs and improve bill management:

• Compare energy prices: Our extensive supplier network allows us to find competitive prices that suit your needs. By comparing quotes from different suppliers, you can secure the best rates.
• Negotiate contracts: Our team is skilled at negotiating contract terms, from securing fixed rates to adding flexibility for businesses with multiple sites. We work with suppliers on your behalf to help you avoid overcharges and find the best deal suited to your business needs.
• Reduce financial risk: Energy prices can be unpredictable, but World Fuel’s guidance helps you navigate these changes. We offer tailored strategies to manage risks, allowing you to plan with confidence.