Are you a small and medium-sized enterprise (SME) who has a hard time looking into the complexities of your energy bill? How to read it and where exactly to look?
Our helpful guide will highlight everything you need to know about your energy bills.
For SME’s, keeping a handle on expenses is key to staying profitable and staying in the game for the long haul. When it comes to your business finances, don’t underestimate the impact things like energy bills can have.
Important Parts of the Energy Bill
Understanding your energy expenses is crucial for small and medium-sized enterprises (SMEs) looking to manage costs effectively. Here, we’ll delve into the key components of energy bills in the UK to empower businesses with clarity and insight.
Customer Information
The account holder’s name and account number are often found on the upper part of the bill. This is for the customer to take note of as it is to be used by your supplier to identify you as a customer and ensure prompt assistance for queries or issues.
Billing information
This part shows when your energy consumption is either being billed monthly or quarterly.
Meter Readings
This shows the accurate readings of your meter from your last billing date up to the present. This prevents billing discrepancies, ensuring you pay for actual usage. You also have to take note of whether you have with you an estimated reading or the actual reading.
Energy Consumption Cost
The unit rate, representing the cost per kilowatt-hour (kWh) of energy consumed, forms the bulk of your bill. This is broken down into the following two charges:1) Unit rate – this is the amount you pay for each unit you use which is measured in kilowatt-hours (kWh).
2) Standing charge – This fixed daily fee covers the expenses associated with delivering energy to your property and is applied irrespective of your gas or electricity usage.
Usage Comparison
Some bills offer comparisons with past usage or similar businesses, aiding efficiency tracking.
Value Added Tax (VAT)
VAT applies to energy, varying between 5% for domestic and 20% for business use.
Tariff Details
Your bill outlines contract terms, end date, payment options, and available discounts.
Additional Charges
These may include taxes like Renewable Obligation (RO) or Feed-in Tariff (FIT), promoting renewable energy.
By understanding these aspects of your energy bill, you can help your business in the long run. With this, you can make decisions to optimise energy usage and potentially reduce costs.
However, if you do need a helping hand make sure you speak to the right people. Consider consulting experts in the field, like us. Our guidance can help you in optimising your energy plans for long-term benefits.
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