What makes up your energy bill

Your energy bill is made up of several elements it is not just the cost of wholesale energy. Here we are looking at the proportions which can be found in an average bill for SME business customers, including brokered and non-brokered sites within our portfolio.

Both your contract and your business my alter your exact set up. For example, some contracts may not have a standing charge. Different business may attract different requirements on VAT and CCL (Climate Change Levy).

What is included in your energy bills?

Your energy is made of six key areas to easily show how your energy bill could be broken down. This is an illustration only so may not represent your situation exactly.

A pie chart describing how a business gas and power bill are split up. The sections include wholesale, environmental, network, operating and third party costings as well as tax.

 

Wholesale

This covers the cost to buy the fuel. We don't control the wholesales market and prices can go up and down. Therefore, the price you pay would be dependent on your contract type and when you took the contract out. 

For gas this also includes Unidentified Gas charges which show in the standing charge.

Network

We don't own the electricity wires or gas pipes the energy flows through to reach you. This is done by transmission and distribution networks.

So, we have to collect money to pass to them to go towards maintaining, running and upgrading the networks. This is also covering costs associated to ensuring a safe, balanced network.

Environmental

With the transition to net zero, there have been several governments schemes to help with this, some of these schemes require a payment on energy bills. This is not money we keep but money we pass on to those administering the scheme. The schemes include but are not limited to Feed in Tariff, Renewable Obligations, Contracts for Difference and Green Gas Levy.

Operating

This covers two main areas, metering costs and costs incurred by the supplier.

Metering costs cover both meter rental as well as reading. Supplier costs reflect our operating costs. 

Tax

This will cover the Tax and CCL (Climate Change Levy) which is included as part of your bill. This would be specific to your company requirements so maybe different to what is represented.

Third Party

If you have contracted via a Third Party Intermediary, such as a broker, they will likely have charge a fee for their service. This fee is often included within your contract price, we will be collecting the money to pass on to them.

Further Information

On the back of your bill, you'll find a detailed description on how to read your bill. You can also check out the info section on how to read a bill. If you are also unsure of any of the terms in your bill, please go to Ofgem's website for a glossary of terms here. 

To find out more what's included as part of your bill, including Unit Rate charges and Standing Charges, simply click here.