The three parts of every bill
Every business electricity invoice breaks into commodity (the energy itself), non-commodity (network, levies and taxes) and VAT. Commodity is the only part your supplier truly competes on, but it is typically less than 60% of the total — which is why two suppliers on identical wholesale prices can still quote differently.
Charges worth checking every month
Non-commodity charges are where errors hide. Distribution charges depend on your location and voltage. Capacity charges apply to half-hourly meters and are often set far above actual demand, meaning you pay for headroom you never use.
- Standing charge — a daily fixed fee, charged even at zero consumption
- Climate Change Levy (CCL) — per kWh, with relief available for some sectors
- Availability/capacity charge — check your agreed kVA against real peak demand
- VAT — 20% by default; 5% where a qualifying low-usage or charitable use applies
Estimated reads distort everything
An 'E' next to your reading means the supplier guessed. Estimated bills create phantom debt, distort renewal quotes and delay switches. Submit a read on the same day each month, or move to a smart or automated meter read so your consumption profile is accurate when you go to market.
Want this reviewed for your business?
Send us a recent bill and a consultant from our Cardiff office will tell you, honestly, whether you are paying more than you need to.