Top Tips for Understanding Your Business Energy Bill
Having a good understanding of your business energy bills is fundamental to knowing if you are overpaying for your gas and electricity supply. With this in mind and in true Love Energy Savings style, we have put together this guide to understanding your business energy bill.
Due to new rules and regulations from Ofgem, your bill now has all the information you need, from details of your current contract, the prices you are paying, and any other factors which play a part in how much your energy costs. These details were often hard to find or misleading but these new measures have ensured you can get this information quickly and easily.
It’s well worth getting to know the various things that are shown on a business energy bill and how to determine whether a better deal could be available somewhere else. If this is the case, you can take advantage of the energy comparison tools we have available here at Love Energy Savings and get your business onto a fairer, cheaper tariff.
Unit Rates & Standing Charges
Unit rates and standing charges are pretty significant when it comes to understanding whether you are forking out more for your energy than you need to and depending on the deal you are on, they can vary considerably.
The difference between the two is simple. The standing charge is the cost you have to pay daily, regardless of whether or not any energy is actually used. Meanwhile the unit rate is the fee that’s payable on every unit of energy consumed. Its measurement is kWh, or kilowatt hours.
Your electricity bill will almost certainly incorporate a standing charge, however on some business gas arrangements it may not be included. In truth it all depends on the agreement you have with your supplier. If you have any questions regarding your business energy bill, you can always contact the Love Energy Savings team who will provide you with free, impartial advice.
At the very least, you can expect to pay about 35 pence per day in standing charges for gas and slightly less, usually about 30 pence a day, for electricity.
As for unit costs, the least expensive deals are usually about 4.5 pence for every kWh of gas consumed, and 11 pence per kWh consumed for electricity. If you find you are shelling out more than this, the odds are that you could reduce what you pay with a switch to a cheaper supplier of tariff. All you need to do is perform a free energy comparison to find out what the best deal is for your organisation, we can then get you moved over in a matter of weeks.
Notice Period & Contract End Dates
Since April 1st 2014, it’s been compulsory for energy suppliers to include both the notice period and contract end on your business energy bill. This information is hugely important should you wish to change to a less expensive rate.
To explain, the date when your current arrangement runs out is the contract end date. It’s also the day on which your tariff will go up unless you sort out a new deal.
You will need to give notice well before the actual end of the contract, so it makes sense to compare energy prices as quickly as possible and get the Love Energy team on the case. This way you can save as much money as possible and get onto your cheaper business energy tariff sooner rather than later. So, this is how significant the notice period end date is.
We know that these terms and exactly what they mean can be confusing and that you are no doubt very busy running your business, so be sure to refer back to this energy guide whenever you get stuck. Alternatively, you can always get in touch with our energy experts via phone or email.
What Else Effects My Business Energy Bill?
There are also factors such as VAT and the Climate Change Levy that can affect how much your business will pay for its energy, so for that reason both of these will appear on your bill for your information.
In addition to this, if your business uses a smart meter to monitor its energy use, this will also be displayed on the bill as well.
Use all of the details displayed on your company’s energy bills to make sure you are not paying more for your business’s supply of gas and electricity than you need to. Remember, if you need any information about your home or business energy, we have all sorts of resources available in Industry News and Energy Help Centre.
Browse our Energy News Centre or Energy Guides for more information regarding the home and business energy sector.