When your energy bill lands on your desk, you might be tempted to take a quick glance to see how much you’re paying and file it away.

However, knowing what all the different elements mean can provide a lot of valuable insight into how you use gas and electricity. It can even tell you if you’re paying too much.

Here are the main elements to look out for when you get your bill and what they all mean.

Remember that different suppliers have different billing practices, so your own bill may look slightly different. If you have any questions, get in touch, and we’ll be happy to break things down further for you.

Billing Address and Client Account Number

It’s always important to double-check these to make sure they’re right. If your energy bill is significantly under or over what you usually pay, it might be that you accidentally received the wrong bill.

Contract Details

This shows the tariff name you’re on, how long your contract runs for, and how you pay. This is typically by direct debit, although you might also pay through online banking, cheque, or through the energy supplier’s web portal.

Supply (or Site) Address

This refers to the address that the energy bill is for. If you operate a multi-site business, this may be different to your billing address.

Invoice Period

This details the time period that the bill covers.

Supply Number

This long number identifies the electricity or gas supply point at your site address. Your supply number is unique to your building. Even if you change energy suppliers, it always stays the same.

Your electricity supply number is 21 digits and is known as a Meter Point Administration Number (MPAN). Your gas supply number is between six to ten digits and is known as a Meter Point Reference Number (MRPN).

If you change suppliers, knowing your supply numbers can make the process easier.

Bill Amount

Most energy suppliers will summarise your charges on the first page so you can see what you owe at a glance. This is typically broken down so you can see:

The cost of the energy you’re using (net charges). This is known as a commodity cost

Additional charges. This includes the value added tax (VAT) you pay on your energy and any climate change levy (CCL) costs. These are known as non-commodity costs

Your energy supplier will tell you what you owe and when the balance is due.

If there’s a ‘DR’ after the total, this means you’re in debit. If there’s a ‘CR’ or your bill total is shown in brackets, it means you’re in credit.

It’s common to be in credit during the summer, as you use less gas and electricity.

Breakdown of Charges

This section provides a more detailed breakdown of your energy use, covering both commodity and non-commodity costs. Let’s look at what all the different terms mean.

Meter Serial Number (MSN)

Your charges are broken down by meter serial number. This is different to your MPAN or MRPN as it refers to an individual energy meter rather than a supply point.

A large commercial property like a factory or shopping centre might have multiple gas or electricity meters but only one supply point.

Meter Readings

Your bill will show your individual meter readings so you can see how many units of energy (measured in kilowatt-hours or kWh) you used since your last bill.

These will either be accurate or estimated. If you have a smart meter or submitted a meter reading before the bill was calculated, your reading will be accurate. If not, your energy provider will estimate how much energy you used based on previous bills.

You can submit a reading if you’re not happy with the estimated one on your bill. Your provider will send you a revised bill or roll any changes over to your next bill.

Energy Used

This section shows the cost of the energy you used during the invoice period. It’s calculated by multiplying the cost of energy per unit by the amount of units you used.

If you are on different tariffs, for example, a day and night charge, these are calculated separately.

Standing Charge

The standing charge is a daily cost that covers the operation of the energy supply network, as well as any sustainability initiatives.

This is charged even if you don’t use any energy, for example, if you’re closed at the weekend.

Reactive Power Charges

A reactive power charge is a fee added for inefficient energy use. For example, if you operate a factory and a lot of electricity is wasted as heat. It’s important to note that not all businesses will pay reactive power charges.

You can avoid reactive power charges by making changes to how you use energy. If you want to become more energy efficient, we can help.

CCL

The Climate Change Levy is a tax imposed on certain businesses in the UK that use gas, electricity, and other fossil fuels. The aim of the CCL is to encourage companies to move to renewable sources of energy like solar and wind.

The levy is automatically included in your energy bills, and energy suppliers are responsible for making sure you are charged the right amount.

Exceptions and reliefs are available for certain businesses, for example, if you are a small business or charity. If you think this applies to you, advise your energy provider.

Outstanding Charges

This means you have a balance owed from a previous bill that needs paying.

VAT

The standard VAT rate for UK energy bills is 20%, although you may be eligible for a reduced rate of 5% in certain circumstances. For example, if you are a charity or use a very low amount of energy.

If you think this applies to you, contact your energy provider.

Think You’re Paying Too Much?

If you’re concerned that your energy bills are too expensive, we can help you find a better tariff for your business.

Our team of procurement experts will analyse your previous bills and work with you to understand your needs, both now and in the future. We’ll then recommend the ideal tariff from a range of trusted energy suppliers.

(And if we honestly think you’re already on the best tariff, we’ll let you know.)

Get started with a free, no-obligation quote and see how much you can save.