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Understanding your Business Electricity Bill

We all want to save money. One of the best ways to do this is to understand where you are spending money. There are things you need to buy, and things that are optional. Food, water, premises and energy are all essential. While you may understand how to reduce your food or water bills, few people truly understand how to save money on their energy.

This is because few people really understand what their energy bills are telling them. While we all understand the total cost to pay, we don’t all understand how that number has arrived. Business Electricity bills can appear complicated. They don’t need to be difficult to understand. With this simple guide, you will understand what your bill means. You will then learn how you can reduce your costs.

What Is On My Business Electricity Bill?

Your business electricity bill contains a lot of information. Most of it is purely for reference and isn’t important to understanding your bill. This information includes:

  • Addresses and Contact Details
  • Dates of bill issues
  • Amounts of previous bills.
  • Customer reference numbers.

All of this information is worth noting, but not essential to your bill.

The information that really matters is:

  • Previous energy usage information
  • Estimated / Actual meter readings
  • Standing Charge
  • Unit Cost
  • Total Cost (in Kilowatt Hours KWH)

This information shows how much energy you have used. It should also help you understand why your bill is the amount it is.

The previous energy usage information shows you how much energy you have previously used. This can either tell you the number of units of energy you used last month, or the amount you have used in total. This should help you determine whether you used more or less energy than usual.

Your meter readings can be either estimated or actual. Estimated means that your energy company have estimated how much energy they think you are likely to use. Actual means that either you or a meter reader have taken a reading from your meter. You can find out more about how to read gas and electricity meters here.

The standing charge is the amount that your energy supplier charges you for delivering energy to your business. This is usually between 5p per day and 60p per day.

The unit cost is how much your energy costs per unit you use. This is measured in kilowatt per hour (kWh). This number determines how much energy you have used, and therefore how much you will pay. You can find more information on unit rates in our definitive guide to energy prices per kWh.

The total cost is your final bill. This adds together both the standing charge and the total units you have used.

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What price should I expect to pay for my business electricity?

Your energy bill depends on your business. What you do, how big your premises are and how many staff you have can affect your energy use. However, there are rough estimates for how much different sizes of business can expect to pay.

Business size

Annual Usage

Unit Price/kWh

Standing charge

Annual Bill

Micro

8,000 kWh

16.74p

27.40p

£1,439

Small

20,000 kWh

14.83p

26.83p

£3,064

Medium

40,000 kWh

13.68p

26.41p

£5,568

Large

80,000 kWh

12.93p

26.20p

£10,439

These prices are only averages – you could still save significantly on these by finding the right business electricity supplier for your business.

What affects my business electricity bill?

The prices that you pay for energy can depend on many factors. While your business has a major impact, there are also other major events and factors which affect your bills.

Electricity prices suffer from supply and demand. If more people are using electricity in the country at the same time, then your prices may rise.

Most power in the UK still comes from fossil fuels. While green energy usage is growing, fossil fuels still produce a lot of our energy. This means that international events can affect prices. Disasters, conflicts and unexpected incidents can all increase your energy prices.

How Can I Pay Less?

The most effective way to pay less on your energy bill is often to switch providers. Once you understand your bill, you can often tell if you are paying too much.

Different energy providers can suit different businesses more or less. Finding the right supplier for your business can see difficult. However, with Love Energy Savings, it doesn’t have to be. We specialise helping business like yours switch commercial electricity quickly and easily.

When you get in touch with Love Energy Savings, we help you compare the deals and offers available to you, so you can choose the supplier that suits you.

To find out how much you could save today, compare energy prices with Love Energy Savings.

To compare business electricity and start your switch today, use our free online comparison tool.

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