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Why You Shouldn't Pay More for Business Electricity Than You Have To

Why You Shouldn't Pay More for Business Electricity Than You Have To

Many residential households will experience a significant decrease in their energy bills due to a drop in the Energy Price Cap from July 1. This cap limits the amount energy suppliers can charge for each unit of energy households use.

However, businesses are not protected by the cap and are subject to their energy provider's uncapped tariffs for gas and electricity usage and standing charges.


While the Energy Bill Relief Scheme provides some relief to businesses, it is important to note that it offers wholesale price discounts rather than capping costs. This article will explore your options if you pay more for business electricity than necessary.

What to Do With an Overcharged Bill

If your electricity bill is higher than usual, here are a few steps you can take to address the problem.

Understand Your Energy Bill

You need to understand three main elements of a business energy bill: the standing charge, unit rate and the contract end date.

  • The standing charge is the daily rate you will pay regardless of how much energy your business consumes.
  • Your bill will display the unit rate as a kilowatt-hour (kWh). This will show how much energy your business consumes. The more you use, the higher the kWh will be.
  • The contract end date will show you which day your energy contract expires. If you plan on switching to a different supplier, you will be charged an exit fee to end your contract earlier. The best option is to wait for the contract to end before you compare popular business electricity providers to find a better deal.

You will notice a Climate Change Levy (CCL) on your bill. Some businesses are charged for every unit of non-renewable energy they use.

Check Which Energy Tariff You Are On

When your contract ends and you are on a fixed-energy tariff, your energy supplier will automatically put you on their standard energy tariff. However, your supplier should give you advance notice of any price changes if you are on a specific gas or electricity tariff.

This includes switching you over to variable tariffs, before they raise prices or change contracts. Your energy provider must give you at least 30 days' notice.

Should it be that your tariff has increased and your supplier has not informed you, you have every right to lodge a complaint and file a dispute.

Monitor Your Meter Readings

Ensure everything is correct by checking it twice to ensure you are not overcharged on your energy bill. If you don't have a smart meter, you can monitor your bills by regularly taking notes and comparing them to your current tariff.

Submitting your energy readings more frequently is crucial because energy providers who estimate your bill sometimes overcharge you. It is advised to turn in at least four readings annually or every three months. You can establish that your bills are incorrect by using a set of precise readings.

Alternatively, invest in a smart meter. By installing a smart meter, you will receive an accurate bill based on actual energy consumption, not an estimated bill. Your smart meter automatically sends secure meter readings to your energy supplier. You can choose daily, half-hourly or monthly readings according to your preferences. This ensures that you only pay for the energy you use.

When To Lodge a Complaint

Inflation in the UK might be easing, so your energy bill should be lower. If you cannot account for an increased energy bill, you should dispute the bill with your service provider.

Dispute Your Bill With Your Service Provider

If you have concerns about your high energy bill, contact your supplier's customer service or complaints department. Their website contains their contact details. All correspondence, including utility bills, should be kept on file, and it's a good idea to note when it was sent.

This will enable you to track what is being said, even over the phone. Your case will also be supported by evidence, such as invoices, pictures of broken meters or boilers, and records of prior correspondence.

If your issue remains unresolved after using all available avenues to complain to the energy provider, you may be in a bind. Energy suppliers must resolve most complaints within eight weeks. You should file a complaint with the Energy Ombudsman Service if this happens.

Remember that you must file a complaint with the Ombudsman within nine months of the conclusion of the eight weeks and that you should only do so. Your energy provider can be forced by the Ombudsman Service to take the required action, which might be a more efficient way to solve your problem.

Final Thoughts

There may be several reasons why your electricity bill is higher than normal. If you believe you are being charged too much, you have every right to file a dispute with your energy provider. If your issue remains unresolved after the designated time, you can contact the Energy Ombudsman Service, who will happily step in and get involved. Visit https://www.easterneye.biz/ to stay up to date with the latest news.

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