Everything You Need To Know About Business Electricity 2022

Many companies rely on electricity to conduct business. But, not many people understand the full particulars of using electricity as an energy supply. If you’re a business owner looking to switch to electricity or yearning to switch supplier, then this comprehensive guide will spark your interest. 

What do my electricity bills and tariffs mean? 

Your electricity bill allows you to monitor your company’s electricity usage. Additionally, understanding your electricity bills and tariffs means that you will be able to see if you are being charged correctly. 

 

The format of your electricity bill depends on the supplier that you are using, but generally speaking, the content should be the same. Electricity suppliers usually have the same standard charges. Your electricity bill contains the following information based on your account: 

• Account number 
• Company name
• Company address 
• Company contact details
• Billing period
• Billing date
• Billing number
• VAT number 
• Meter Point Reference Number (MPRN)
• Meter Serial Number (MSN)
• Outstanding Charges
• Type of Charge 

 

Your electricity suppliers will also add a breakdown of charges, in addition to your account information on your bill. A standard breakdown of charges will include your electricity supplier’s daily standing charge, charges related to your account’s cost breakdown, your unit rate per kWh, VAT, the total payment due, and a daily standing charge. 

Additional charges 

 

• Climate Change Levy (CCL)

 

Electricity is one of more environmentally conscious ways to provide energy for one’s business. However, the operations surrounding the generation of electricity are not always good for the environment. For example, most companies use natural gas and coal to generate electricity. 

 

Gas and coal pollute the air, which in turn harms the environment. The Climate Levy (CCL) is an effort to reduce pollution from businesses. The tax is aimed at ensuring that businesses are environmentally responsible. 

1. Carbon Reduction Commitment (CRC Efficiency Scheme)

In an effort to reduce the carbon footprint of businesses, the Carbon Reduction Commitment (CRC Efficiency Scheme) was developed. The CRC Efficiency Scheme acts as the taxman in the world of energy consumption. 

 

The bigger the business, the higher the carbon footprint, and the higher the “carbon tax”. Every business’s carbon tax will be paid for every tonne of carbon dioxide that it emits. All businesses are held liable for their environmental impact, and if they fail to comply, they will be fined. 

 

• Transmission Network Use of System (TNUoS) 

 

Another charge that you might see on your bills and tariffs is TNUoS. TNUoS fees go straight to the National Grid. The name is a bit of a mouthful, but simply put, the TNUoS charge goes towards ensuring the maintenance and transmission of energy from the grid to the area that it’s powering. 

 

• Distribution Use of System (DUoS) 

 

Simply put, this charge is paid to the corporations that distribute energy throughout the UK. These companies act as traffic cops by ensuring that electricity is harmoniously distributed from the National Grid to your business. You will be charged based on usage. 

 

The type of charges that your business incurs depends on your business model, function, size, and even how long you’ve been operating as tax changes over the years. Some businesses that offer charitable services, such as housing and NGOs, often pay less tax. 

Reducing Electricity Consumption and Cutting Costs

Tips to reduce commercial energy consumption and electricity costs: 

• Use A-energy-rated appliances
• Use natural light or energy-efficient light bulbs
• Hibernate inactive devices
• Turn off standby equipment 
• Upgrade equipment to newer, more renewable, and efficient models
• Regularly have your wiring and circuit inspected 
• Use a smart thermostat and a smart meter 

 

Switching Suppliers and Comparing Quotes  

When scoping the market for your first or a new electricity supplier for your business, you should ask yourself the following questions:

• How much and how often can you realistically afford to pay towards your bill?
• Are you keen on a renewable option for a gas supplier?
• Do you want a long-term of short-term contract?
• How trusted is the electricity supplier? 

 

You can save a lot of dough by scoping electricity quotes for business and choosing the best option for your business. 

Conclusion

Never underestimate the importance of finding the perfect electricity supplier for your business. You can save money and time and keep your business charged for years to come. 

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