Running a business keeps you busy, and let’s face it — energy bills don’t always top the to-do list. But here’s the catch: only around 44% of your bill actually covers the electricity you use. The rest? It goes on things like network charges, taxes, and other extra.The rest, the 56%, is unknown. Our Energy Expert team will be happy to help you to understand you bill. Energy bills for businesses can be tricky to make sense of — but understanding them can lead to real savings.We’re here to help you make sense of your Business electricity bills and highlight the key things to check before switching suppliers .As long as we are reviewing your current electricity bill,you should take not of few things on your bill .
If you suspect your business gas or electricity contract is costing more than it should, the first step is to review your latest energy bill. It reveals what type of tariff you're on, whether you're being charged correctly, and includes other valuable details that could help you cut costs. At BBC Utility , we're here to help you make sense of it all and take control of your business energy spending.
A standing charge meant for being connected with electric meter of your business .. This rate can vary depending on your energy tariff and how much electricity you consume.Apart from these things you see on your bill, other factors affect your costs, even if they're not listed on the bill.In this Guide we will explain it clearly.
Unit Rate : This is the price you pay per kilowatt-hour (kWh) for the electricity your business uses. It’s a variable charge, meaning the more you consume, the more you’ll pay overall. Your unit rate plays a major role in determining your total energy costs.
Contract End Date: When your fixed-price deal ends.
Climate Change Levy : Its a charge on Business energy to target Greener and efficient consumption. You may be exempt from paying the Climate Change Levy (CCL) if your business primarily uses clean, renewable energy. You can avoid it if you stays below 33 kWh pf electricity and 145 kWh of gas per day . Normally VAT is 20% although some Business May be eligible for reduced 5% if they meet specific criteria — for example, using less than 33 kWh of electricity.It’s important to factor VAT into your energy budget, as it can significantly impact your overall costs.
Smart Meter Charges :Businesses may incur charges for the installation and upkeep of smart meters, which are typically included in your overall electricity bill. While these costs are usually small, smart meters provide real-time data on your energy usage, helping you monitor consumption and improve efficiency over time.
Electricity prices on the wholesale market fluctuate every half hour, influenced by supply and demand. While your bill doesn’t show these changes directly, they affect the rates your supplier sets. This volatility means that even on a fixed tariff, the cost you pay is influenced by broader market movements behind the scenes.
To shield businesses from frequent wholesale price fluctuations, energy suppliers often set fixed rates that are higher than the market price. However, when wholesale prices rise sharply and reach these fixed thresholds, costs can increase across the board — both for businesses and in the wider energy market.
Transmission and Distribution : The price of delivering your electricity depends on where you are based to where is was manufactured. If you reside fast it will cost more .You are committed to pay for moving the energy and maintenance. Your bill is inclusive of it .
Losses : As electricity travels long distances through the grid, a portion of it is lost in transit. The farther your business is from the source of generation, the more energy is lost — and the higher the associated costs. These losses are factored into your bill, meaning you're effectively paying for electricity that never reaches your premises. It's one of the hidden costs that contributes to your overall energy rate
Industry Charges : The UK energy network is supported by a complex system of pipes, cables, regulatory bodies, and infrastructure. These industry charges help cover the cost of maintaining the energy system and ensuring it can meet future demand. While not always visible on your bill, they are an essential part of keeping the energy supply reliable and resilient.
Your energy bills are actually cost for covering these ongoing expense . This money will keep the whole system smooth and ready for the future.
Government Initiatives: While the government clearly shows some charges like the Climate Change Levy on electricity bills, other fees aren't so easy to spot.
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