News / How to understand your business electricity bill

How to understand your business electricity bill

10th January 2019

We understand that electricity bills can be a little confusing, especially if you’re seeing one for the first time. But they’re easy to understand once you know what you’re looking for. That’s why we’ve asked our expert Amy Boosey from our Operations Team to guide you through some of the key elements you’ll find on your bill.

To see an example of a typical bill, complete with explanations, – click here.

The front of your electricity bill tells you the period it covers, along with the meter point from which it was taken.

You’ll also find the breakdown of the charges you pay for your business electricity. These cover both the cost of the electricity you’ve used and the tariffs at which you are paying for it.

One thing you may notice is that the price of the electricity that your business has used, only makes up around 40 per cent of your total bill.

The remainder of the front of your bill includes some of the other third-party charges - making up the other 60 per cent of your costs, including the Balancing Services Use of System charge. This is levied by the government to cover the cost of balancing the UK electricity network.

There are also other additional third-party costs, including distributor charges – which supports the system that enables safe and secure electricity supplies across the UK – together with transmission charges, which cover the cost of running the National Grid.

You will also see a breakdown of the tariffs that apply at the times of the day in which your business has been using electricity; particularly the amount of energy you have used on the most expensive Red Unit tariff. This information can help you understand how you use your electricity, or even help you consider the benefits of possibly investing in battery storage in order to reduce your electricity bills going forward. On your bill you may also see an amount for 'reconciliation adjustments’. This is a charge that reconciles the difference between our initial estimates for the cost of charges, such as BSUoS (Balancing Services Use of System) and the actual level at which it was set.

The penultimate section of your bill covers ‘taxes, levies and other statutory obligations’. These include the Climate Change Levy and are levied by the government on suppliers, including Haven Power, to subsidise the cost of renewable generation. They help ensure our country has enough power on the grid to meet demand.

If you’d like to find out more about how Haven Power can help your business benefit from renewable energy, please use our contact form to get in touch.

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