Let’s face it—business electricity bills in the UK can be confusing, especially if you’re trying to figure out where your money is actually going. With unit rates, standing charges, kWh usage, and VAT all packed into one document, it’s easy to feel overwhelmed.
In this quick and clear guide, Scalex Technology explains how to read and understand your bill—so you can spot overcharges, reduce waste, and even negotiate a better deal.
🧾 What’s on a Business Electricity Bill?
A typical commercial energy bill contains these key elements:
1. Customer Information
This includes:
- Business name
- Account number
- Supply address
- Meter Point Administration Number (MPAN)
✅ Check that these details are correct to avoid billing issues.
2. Billing Period
Shows the dates for the usage being charged. Make sure it aligns with your meter reading schedule or smart meter data.
3. Meter Readings (Estimated or Actual)
You’ll see one of the following:
- A (Actual) – based on real readings
- E (Estimated) – based on past usage
- C (Customer) – a reading you submitted
💡 Always try to submit actual readings to avoid overpaying.
4. Electricity Usage
Measured in kilowatt-hours (kWh) – this is the total energy you’ve consumed during the billing period.
🔍 Example: 2,000 kWh @ 30p per kWh = £600 usage charge
5. Unit Rate
This is the price per kWh of electricity. Business rates vary based on your tariff and supplier—typically between 25–40p/kWh in 2025.
6. Standing Charge
A daily fixed fee that covers the cost of maintaining your energy supply—often around 40–80p/day.
📌 Even if you use no energy, this fee still applies.
7. Climate Change Levy (CCL)
A government-imposed tax on business energy use. Exemptions apply for:
- Charities
- Green energy contracts
In 2025, the CCL for electricity is 0.775p per kWh.
8. VAT
Most businesses pay 20% VAT on electricity. Smaller businesses (with low usage) may qualify for a 5% VAT rate.
9. Total Charges
This is the amount payable including:
- Unit rate costs
- Standing charge
- VAT
- CCL
You’ll also find the payment due date and how to pay (e.g. Direct Debit, online, BACS).
🧠 Why Understanding Your Bill Matters
- Avoid overbilling or estimated errors
- Track energy waste and reduce costs
- Ensure you’re on the right tariff
- Claim VAT exemptions if applicable
📉 Spotting Red Flags
- ❌ High estimated readings
- ❌ Expired or auto-renewed contracts
- ❌ Unexpected tariff increases
- ❌ Ineligible VAT or CCL charges
💬 If in doubt, contact your supplier or let Scalex Technology audit your bill for free.
✅ How Scalex Technology Can Help
- ✔️ Free bill audits
- ✔️ Smart meter installation
- ✔️ Better tariff comparison
- ✔️ Green energy and VAT guidance
- ✔️ Support with multi-site billing
📣 Need Help Understanding Your Bill?
Upload your most recent business electricity bill to Scalex Technology today and receive a free review. We’ll check for overcharges and help you switch to a better plan—fast.
👉 Submit Your Bill for a Free Review
