Running a small or large business means your time is very precious and limited, nevertheless spending some time to take a quick and close look at your business energy bills could save you money in the coming time and that will boost your bottom line.
Business energy bills are very detailed and sometimes difficult to understand. Business energy brokers can help you in understanding the business energy bills.
There are various aspects of your business energy bill and here’s a quick guide to understanding your energy bills:
- Billing period and bill dates: – This information is provided so that when you call a supplier to enquire about a payment period, they will quickly use this information and give you an accurate answer.
- Contract details and renewal period: -This information will provide you the type of tariff you are on.
- Breakdown of charges: -Your bill will include the total amount payable for the current period. This is made up of outstanding payments from previous bills, your current period’s payments, further charges incurred and your VAT charges.
- Wholesale Energy Costs: – This is the cost of producing electricity in power stations.
- Standing charge: – Even if you do not use any energy in a given period, you will still need to pay a standing charge to your supplier.
- Unit rates: – This is the amount you have agreed to pay for each kWh of power you use. The rate varies depending on your contract.
- Network Charges: – Costs incurred to ensure that the transmission and distribution network is maintained and operated within prescribed limits + losses in these networks
- Renewables Levies: – These charges are used to pay subsidies to operators of renewable energy plants
- Carbon taxes: – These affect the wholesale energy cost, but are also billed separately as the climate change levy.
- Fixed Charges, Admin & Profit – These cover costs for connecting to the distribution network and for maintaining meters and admin charges associated with Ofgem and licensed suppliers.
- VAT – Value added tax is 5% for domestic customers but 20% for businesses
If you understand your business energy bill, it will help you in saving your hard-earned money. So, understand your business energy bill and grow your business.