Make sense of your business energy bill.

A business gas or electricity bill brings together several pieces of information: your supply details, the period being charged, meter readings, consumption, rates and payments. Looking at each part separately can help explain why the amount has changed.

An increase does not always mean the bill is wrong. Your business may have used more energy, the billing period may be longer or a previous estimate may have been corrected. Start by comparing the bill with your contract and earlier statements.

Check the account and supply details

Make sure the business name, supply address and account reference belong to the correct premises. If you manage several sites, check that the bill relates to the meter and location you are reviewing.

Your electricity MPAN and gas MPRN identify supply points. They are different from the supplier’s account number and the meter serial number. A mismatch can be particularly important after a move, meter exchange or supplier transfer.

Review the billing period

Check the start and end dates and compare them with your previous bill. Look for unexplained overlaps, gaps or periods that extend beyond the date you occupied the premises.

A longer billing period normally includes more days of standing charges and may include more consumption. Compare costs over equivalent periods before concluding that your underlying rates have increased.

Understand unit rates and standing charges

A unit rate is the price charged for each kilowatt-hour (kWh) used. Electricity contracts may have different rates for different registers, such as day and night consumption. Check that each rate matches the appropriate contract period.

A standing charge is generally a daily amount payable regardless of usage. Check both the daily rate and the number of days charged. Depending on your supply and agreement, other metering, capacity or non-energy charges may also appear.

Our business energy contracts guide explains how to identify the agreed rates, payment terms and any charges that can change.

Actual, customer and estimated readings

Bills may identify readings as actual, customer supplied or estimated. The labels and abbreviations vary between suppliers, so check the explanation on your bill rather than relying on a single letter.

Estimated readings are calculated rather than taken directly from the meter for that date. An estimate that is too high or low can lead to an adjustment when a reliable reading becomes available. Ask your supplier how to submit an updated reading and whether a revised bill will follow.

Gas meter units and billed consumption

Gas meter readings may be recorded in cubic metres or cubic feet, while the bill charges consumption in kWh. Your supplier applies the relevant conversion factors. A difference between the meter units and the billed kWh is not, by itself, evidence of an error.

If the calculation is unclear, ask the supplier to explain the units, readings and conversion used. Keep a photograph showing the meter display and its unit markings where it is safe to do so.

VAT, levies and other amounts

Business energy bills may include VAT and the Climate Change Levy. The treatment depends on the supply and applicable eligibility rules. If you believe a relief or different treatment applies, ask your supplier or tax adviser to assess your circumstances and any declaration needed.

Check whether the amount due also includes an earlier balance, a credit adjustment or payments already received. The balance payable is not always the same as the cost of energy used during the latest billing period.