Business energy bill explained: how to read every line

Your business energy bill is, at heart, a sum: how much energy you used, multiplied by a price per unit, plus daily fixed charges, plus tax. Once you know where each piece sits, you can check it in a few minutes.

Bills differ between suppliers, and by business size, contract type and meter type (half-hourly, non-half-hourly or smart). Ofgem notes that some suppliers show more detail than others, so use this page as a map rather than an exact template. Electricity and gas from different suppliers arrive as separate bills; from one supplier you may get a single combined bill.

The identifiers at the top

Start with the boxes that say who and what the bill is for. Check that the supply address, account number and contract end date are correct. Then find your meter point numbers: the MPAN for electricity and the MPRN for gas. If either is wrong, the bill may relate to somebody else's meter, which is a classic cause of bills that make no sense. Our guide to finding your MPAN and MPRN shows where else to look.

Billing period and meter readings

Every bill covers a date range. Next to it you should see an opening and closing meter reading, and a marker showing whether each is actual (read by you, the supplier or a smart meter) or estimated (a guess). An "E" next to a reading is the usual sign. Estimated readings are a leading source of surprise bills, so if you see one, read how to correct estimated bills.

The difference between the closing and opening readings is your consumption, shown in kilowatt-hours (kWh). Gas meters measure volume, so the bill converts cubic metres to kWh using a calorific value; the gas units to kWh converter does the same sum.

Unit rate and standing charge

Two charges make up the core of the energy cost:

• Unit rate: pence per kWh used. Some meters have separate day and night rates.
• Standing charge: a fixed pence-per-day amount you pay whether you use energy or not.

Ofgem explains that the unit rate you pay bundles together taxes, government schemes and levies, wholesale costs, network charges, third-party fees and other supplier costs. If your contract included a broker, the broker's cost may sit inside those rates; see how broker commission works. Rates should match your contract or your most recent renewal letter. If they do not, you may have rolled onto a new price; see rollover contracts.

Other charges you may see

Depending on your meter and supply, extra lines can appear:

• Meter charges, such as a Meter Operator Charge for the equipment on your wall.
• Capacity or kVA charges for larger supplies.
• Pass-through items such as network and policy costs, explained in non-commodity charges.

Climate Change Levy and VAT

Two taxes finish the bill. The Climate Change Levy (CCL) is 0.801p per kWh from 1 April 2026 (rising to 0.827p from 1 April 2027), the same for electricity and gas, unless you fall under the de minimis exemption (under 1,000 kWh a month of electricity or 4,397 kWh a month of gas).

VAT is normally 20%. A reduced 5% rate applies to very small supplies (up to 33 kWh a day of electricity or 145 kWh a day of gas) or to qualifying domestic or charity non-business use. From 1 October 2026 to 30 June 2027 (extended from the 31 March 2027 end date HMRC first announced), qualifying domestic or charity non-business electricity in Great Britain is temporarily zero-rated, but ordinary business use stays at 20%. If you think you qualify for a reduced rate, see the VAT declaration guide.

Worked example: checking a bill with a calculator

Say a small shop receives a bill for 31 days. Closing reading minus opening reading gives 1,200 kWh. Using the Moneysupermarket October 2026 average for micro-business fixed electricity (28.4p/kWh and 58.0p/day), purely as an illustration:

Line	Sum	Amount
Energy	1,200 kWh x 28.4p	£340.80
Standing charge	31 days x 58.0p	£17.98
CCL (over 1,000 kWh/month so not exempt)	1,200 kWh x 0.801p	£9.61
Subtotal		£368.39
VAT at 20% (about 38.7 kWh a day, above 33)	£368.39 x 20%	£73.68
Total		£442.07

If your own bill is far from what this method gives you using the rates in your contract, something is wrong: a rate, a reading or the meter itself.

Take a dated photo of your meter on the day your billing period ends. It costs nothing and is your best evidence in any later dispute.

Five quick checks before you pay

1. Are the MPAN or MPRN and address yours?
2. Are the readings actual, and do they match your meter today?
3. Do the unit rate and standing charge match your contract?
4. Is the right CCL and VAT treatment applied?
5. Is any credit or previous payment shown?

If something fails, go to disputing a high bill.

Common bill problems and what they usually mean

What you see	Likely cause	What to do
Reading marked "E"	The supplier estimated usage	Send a reading and ask for a recalculation
Rates differ from your quote	Contract ended and you moved to a new price	Check the renewal letter, then ask for a new deal
Two bills for one period	Switch of supplier or change of tenancy	Check the final reading on the old bill matches the opening one on the new
Unexpected capacity or meter line	Larger supply or extra equipment	Ask the supplier to explain the charge in writing
Large credit or debit	Direct debit mismatch	Ask for the account to be reviewed

Fixed or flexible: what shows up on the bill

On a fixed deal the unit rate and standing charge should stay the same for the term, apart from items that are allowed to pass through. On a flexible deal, the rate can change from bill to bill, so you may see different unit prices in different months. If you do not recognise the rate, look at your contract type; see fixed vs flexible contracts. Ofgem also warns that some charges, such as environmental levies, may be passed through and added once suppliers know them, so check whether your price can change during the contract.

Who sees the bill and who pays it

The bill is addressed to the account holder. If you are a tenant, check the account is in the business name and not an earlier occupier's. If you are a landlord handling several lets, see landlord business energy. Keep bills; you may need them for accounts, VAT claims and any later dispute.

Some suppliers show a bill summary on the first page and the full breakdown on a later page or in the online account. If a charge is unclear, ask for the detailed version rather than guessing.

Next steps

• Run your own numbers in the business energy cost calculator.
• Note your contract end date and see business energy renewals.
• If your supplier cannot explain a charge, escalate through the Energy Ombudsman route.