Why Is My Gas and Electricity Bill So High? A Business Owner’s Guide

If you’ve recently opened your business energy bill and felt a sharp sting, you’re not alone. Many UK businesses are asking the same question:
“Why is my gas and electricity bill so high?”

At Scalex Technology, we work with hundreds of businesses across the UK and have identified the most common causes behind rising energy costs—and more importantly, how to bring them down.

1. Outdated or Inaccurate Meter Readings

If your supplier is using estimated readings, your bills could be wildly off.

🔍 Solution:
Submit regular actual meter readings or install a smart meter to ensure billing accuracy. Scalex Technology can help arrange this for your business.

2. On an Out-of-Contract or Deemed Rate Tariff

Out-of-contract rates are some of the most expensive tariffs in the market—sometimes double the market rate.

🔍 Solution:
Let us review your current contract and find a lower-cost business energy deal fast.

3. Energy-Intensive Equipment or Long Operating Hours

Running industrial machinery, kitchens, or keeping lights on 24/7 can spike consumption.

🔍 Solution:
Conduct an energy usage audit to find out which equipment is consuming the most power. We can help you explore energy-efficient alternatives.

4. Heating and Cooling Inefficiencies

Inefficient boilers, air conditioning, or insulation can waste energy—especially during peak seasons.

🔍 Solution:
Upgrade to more efficient systems or schedule regular maintenance. Consider smart thermostats and heating controls.

5. Phantom Loads and Standby Power

Leaving computers, printers, or other electronics on standby still draws power—a silent cost.

🔍 Solution:
Implement a switch-off policy or use smart plugs to automatically shut down idle equipment.

6. Incorrect VAT Rate

Most businesses should pay 20% VAT, but eligible small businesses may qualify for a 5% reduced rate.

🔍 Solution:
Review your energy bill’s VAT rate or speak to us for a quick check on eligibility.

7. Standing Charges Adding Up

Even if you’re not using much energy, high standing charges can inflate your bill.

🔍 Solution:
We can compare suppliers and find options with lower standing charges for your usage profile.

8. Rising Wholesale Energy Prices

The global energy crisis and market fluctuations have pushed UK wholesale prices higher, affecting business tariffs.

🔍 Solution:
Lock in a fixed-rate deal to protect against future price hikes or explore green energy PPAs (Power Purchase Agreements) for more stability.

9. Incorrect Meter Configuration or Supply Capacity (kVA)

If your kVA capacity is set too high, you’re paying for more than you use.

🔍 Solution:
Scalex Technology offers a free kVA review to make sure you’re not overpaying for your energy supply capacity.

How Scalex Technology Can Help Reduce Your Energy Bills

At Scalex, we don’t just compare prices—we optimise your entire energy strategy.

✅ Energy procurement from the best UK suppliers
✅ Smart meter and monitoring tools
✅ Tariff analysis and bill audits
✅ Help with VAT relief and CCL exemptions
✅ Net Zero and efficiency consulting

📉 Real Result:

A client in Birmingham reduced their annual energy spend by £2,700 simply by switching from an out-of-contract rate and adjusting their standing charge.

Take Back Control of Your Energy Cost

Don’t let your business suffer from inflated gas and electricity bills. With the right strategy, you can take back control and improve your bottom line.

👉 Contact Scalex Technology for a free energy bill review today.

Let us help you find the cause—and the cure.

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