Do You Understand Your Business Energy Bill?
Are you having trouble understanding your most recent business energy bill? We’re here to assist you in managing your money and getting a handle on your bills. You can get all the relevant information you need here, whether you want to know how much energy you’ve been consuming or what an MPRN means for your bill.
The quantity of information displayed on an energy bill for your company might easily make you feel overburdened when you first glance at it. Let’s look at the various parts of your business’s energy cost and the variables that affect it.
The Information on Your Business Energy Bill
Once you understand your business energy bill information, you can better handle your finances. Moreover, if you feel you are paying more than necessary, you can switch your provider. You can conduct an online business energy comparison and find the right supplier for your needs.
The Basics
The first information you will see on your bill is your account number, bill date, billing number, and VAT number. You and your provider use this information to distinguish between various bills and maintain correct records. It’s always a smart idea to double-check this information, especially your company’s VAT number.
MPRN (Meter Point Reference Number)
Your energy meter is identified by your MPRN, which is a string of digits and letters. The MPRN shown on your statement and the one stored in your meter must be the same. You should contact your energy provider immediately if they don’t line up since you could have been charged erroneously.
Standing Charge
The standing charge is one of the most significant components of your energy bill. No matter how much energy you use, you always pay a set price to your energy provider, known as a standing charge. A standing charge is used to pay your supplier’s maintenance expenses for the energy supply.
The Billing Period
Your business’s energy bill should prominently show the billing period. You can see from this information how long you will be charged for during that tenure. This period makes it easier for you to keep better records and guarantees you’ll never have to pay twice for energy.
The Influencing Factors
Other than the regular expenses that are shown on your bills, the following things might affect how much you’ll have to pay:
The Contract Type
There are primarily two types of contracts for commercial gas, electricity, and energy. The first is a fixed rate tariff, in which the cost of one energy unit remains constant throughout your contract. The other is a variable tariff, where the cost per unit is subject to market fluctuations. A variable tariff is a riskier strategy, but if you’re lucky with the market rates, it might lead to lower expenses. If you’re business runs within off peak electricty times, it’s best to opt for a contract with a variable tariff as the rate will be cheaper.
MPRN (Meter Point Reference Number)
Your energy meter is identified by your MPRN, which is a string of digits and letters. The MPRN shown on your statement and the one stored in your meter must be the same. You should contact your energy provider immediately if they don’t line up since you could have been paying more than necessary.
Business Energy Purposes
You can be qualified for a VAT discount if your company space doubles as a residence. In particular, you only have to pay 5% VAT on your company gas and energy bills if at least 60% of your consumption is for home purposes.