Why is my business energy bill so high, and how do I dispute it?

A high business energy bill usually comes from one of six causes: an estimated or wrong reading, a higher unit rate, an out-of-contract price, extra charges, a billing or meter-point error, or a faulty meter. Check those first, then complain in writing, wait up to 8 weeks, and escalate to the Energy Ombudsman if you remain stuck.

Step 1: check the readings

Compare the closing reading on the bill with your meter today. If the bill is estimated, send an actual reading and ask for a recalculation; see estimated bills and how to submit a reading. Citizens Advice, whose guidance is written mainly for households but applies equally here, warns that errors can occur on the first bill from a new supplier or the last from an old one, and that a mismatch between metric and imperial gas units after a meter change can cause overcharging.

Step 2: check the rates

Compare the unit rate and standing charge against your contract. Price changes often follow a renewal, a rollover or the end of a fixed term.

Worked example: a renewal jump

You use 1,000 kWh a month. Your rate rises from 22p to 31p per kWh.

• Extra cost a month: 1,000 x (£0.31 - £0.22) = £90
• Over a year: £90 x 12 = £1,080 before VAT

Also see why prices rise at renewal.

Worked example: out-of-contract rates

Moneysupermarket's October 2026 figures put average out-of-contract electricity at about 40.0p/kWh and 254.0p a day, against 28.4p/kWh and 58.0p a day for an average micro-business fixed deal. For a month at 2,000 kWh:

• Unit cost difference: 2,000 x (£0.400 - £0.284) = £232.00
• Standing charge difference over 30 days: 30 x (£2.54 - £0.58) = £58.80
• Extra in a month: £290.80 before CCL and VAT

These are indicative figures from a comparison site. If you moved premises or let a contract lapse, you may be on a deemed or out-of-contract rate. There is no termination fee when you are out of contract, so move to a proper deal; see how to get off deemed rates.

Step 3: check the extras

Look for capacity charges, new pass-through items and tax. Ofgem says the unit rate bundles taxes, levies, wholesale, network, third-party and supplier costs. Read non-commodity charges and test CCL and VAT with the VAT and CCL calculator. If your usage is low, you might qualify for a reduced VAT rate or the CCL exemption.

Step 4: check the meter point

Confirm that the MPAN and MPRN on the bill are yours. A wrong number can attach someone else's usage to your account.

Step 5: rule out a faulty meter

Faults are rare, so exhaust the other checks first. Citizens Advice suggests switching everything off and watching whether the meter still moves; if it keeps running with nothing on, the meter may be faulty. For gas, treat that as a possible leak and call the National Gas Emergency Service on 0800 111 999.

If you suspect a fault, take a dated reading and photo, and ask your supplier to investigate. Citizens Advice says suppliers may ask for a week of daily readings or fit a check meter. If the dispute continues, you can ask for an independent test. The test is free, but if the meter proves accurate you may have to pay your supplier for arranging it. An independent examiner issues a written report. If it is faulty, the supplier should correct billing, refunding overcharges or agreeing a plan for undercharges.

Government pages on meter testing and the Citizens Advice guidance are written mainly for households, and do not say whether every step applies to business accounts. Ask your supplier to confirm its procedure.

Step 6: complain properly

1. Write to the supplier, using its complaints process, with the bill, your readings and what you think is wrong. Ask for a breakdown of how charges were calculated.
2. Keep copies of calls and emails, with dates.
3. Pay any undisputed part.
4. If unresolved after 8 weeks, or if you receive a deadlock letter, go to the Energy Ombudsman. Micro and small businesses are covered, and you must act within 12 months of the deadlock letter.

The Ombudsman's published case of a £2,200 bill based on an incorrect opening reading ended with the supplier rebilling on actual readings, writing off the balance and paying £100 goodwill, after the consumer had made many calls without progress. See energy disputes and the Ombudsman.

Backdated charges

If part of the bill is a catch-up for earlier periods, the 12-month limit may apply if you are a microbusiness; read back billing.

Evidence checklist

• The bill and the two or three before it.
• Your contract and any renewal letter.
• Dated meter photos, including serial numbers.
• A note of usage by month for the last year, to show what changed.
• Any emails or call records with the supplier.

Has your usage actually changed?

Before blaming the supplier, rule out real causes: new equipment, longer opening hours, a cold snap, a fridge or heater left on, or a change of tenant. A smart meter or monitoring device can show when the energy goes; see energy monitoring for business and saving energy in a small business.

If you can, compare the same calendar month last year in kWh (not pounds). That separates a price rise from a use rise.

What a good complaint letter contains

Keep it short and factual. State your account number and meter point number, the bill date and amount, and the exact line you dispute. Explain why: for instance, the closing reading on the bill is 41,200 but your meter showed 39,850 on the same date, and attach the photo. Say what you want: a corrected bill, a refund or a written explanation of how the charge was calculated. Give a date by which you expect a reply and say you will use the Energy Ombudsman if it is not resolved. Send it by email or the online account so there is a record, and note every call with date, time and the name of the adviser. Pay the part you agree is correct while the rest is reviewed.

Next steps

• Use the checklist above, in order.
• Submit a reading and ask for a recalculation.
• If you cannot afford the amount, speak to the supplier about a plan; see paying business energy bills.