Managing your energy costs effectively starts with understanding your energy invoice. For many businesses, an energy bill can seem like a jumble of confusing line items, acronyms, and charges. However, knowing exactly what you are paying for can help you reduce costs, spot errors, and make smarter procurement decisions.
In this guide, we will break down the typical components of a business energy invoice and explain everything you need to know, from unit rates to pass-through charges and taxes.
Front Page of Your Invoice: Key Information Explained
Before diving into the energy usage and regulatory charges, the top of your invoice usually includes essential account and property details:
Billing Address
This is the address your invoices are sent to. It may be different from the supply address (the location where the energy is used).
Account Number
Your unique identifier with the energy supplier. You will need this when contacting customer support or accessing your online portal.
Bill Reference Number
This helps both you and the supplier identify the specific invoice you are referring to.
Billing Period
The date range for the usage and charges covered in the invoice. Sometimes charges may appear outside of this range if they were missed from a previous bill.
Charges, Payments, and Balance
Charges and Credits
- Charges: Calculated based on the amount of energy used during the billing period. This is based on actual or estimated meter readings.
- Credits: If estimated readings were used and a lower actual reading is later submitted, the difference may be refunded as credit.
You Have Paid
This shows the total amount you have paid during the billing period.
Balance
Reflects the state of your account at the end of the period:
- Owed: You are in debit and need to pay this amount.
- Credit: You have paid more than what was used. This can offset future usage or be refunded.
Your balance will vary throughout the year depending on seasonal consumption patterns.
Estimated Annual Costs & Usage
Suppliers estimate how much energy you will use over a year based on historical meter readings. This estimate is used for comparison and forecasting.
- Regular meter readings keep this estimate accurate.
- Changes in usage patterns (e.g., new equipment or business expansion) may take time to reflect in your annual estimate.
What is on Your Energy Invoice?
Most business energy bills include this core information:
- Energy Consumption Charges (Supply Costs)
- Unit Rate (p/kWh): The rate charged per unit of energy.
- Total kWh Used: Based on your actual or estimated meter readings.
- Standing Charge (p/day): A fixed daily cost for maintaining your energy connection.
Example:
Usage: 10,000 kWh x 15p = £1,500
Standing Charge: 30p/day x 30 days = £9
Subtotal = £1,509
- Network and Distribution Charges
- TNUoS: Transmission costs (national grid usage).
- DUoS: Distribution costs (local delivery to your site).
- BSUoS: Grid balancing costs.
- Third Party Charges / Non-Energy Costs
- Climate Change Levy (CCL)
- Renewables Obligation (RO)
- Feed-in Tariff (FiT)
- Contracts for Difference (CfD)
- Capacity Market (CM)
Learn more: (Add the link to our third-party charges blog post)
- Metering & Data Collection
Covers:
- Meter installation and maintenance
- Smart meter data services
- Charges for half-hourly meter reading submissions
- VAT and Total Charges
- 20% VAT for most business users
- 5% VAT for charities and low-energy users
Meter & Tariff Information
This section offers transparency into your actual metering and pricing details.
MPAN (Electricity)
The unique Meter Point Administration Number identifies your electricity supply.
MPRN (Gas)
The Meter Point Reference Number for your gas supply.
Postcode Area Identifier (Rota Load Block)
Used only in emergencies such as blackouts. It shows which Rota block (A–U) your supply falls under.
Meter Serial Numbers
Each meter has a unique serial number. This number should match what’s on your physical meter.
Meter Readings
Lists actual, estimated, or smart meter readings. If a reading is blank, it was likely taken by a meter reader or automated service.
Gas Conversion
Gas is measured in cubic meters but billed in kWh. This section shows how gas volume is converted to kWh using industry-standard conversion factors.
Your EPG Discount
If government support schemes like the Energy Price Guarantee (EPG) are active, this section shows:
- Your total cost before the discount
- The discount applied
- Your final adjusted bill
Tariff Information
Details include:
- Unit rates and standing charges
- Contract type (fixed vs variable)
- Tariff name and end date
Note: Displayed rates do not include government discounts (like EPG), so they may appear higher than what you are paying.
Your estimated annual usage is also listed here, helpful for getting quotes from suppliers or brokers.
Fixed vs Pass-Through Contracts
| Contract Type | Description |
| Fixed | All charges are bundled into a single rate. Predictable but may include higher risk premiums. |
| Pass-Through | Energy rate is lower, but regulated/non-energy charges are itemised and can vary. |
Tips for Managing Your Energy Invoice
- Audit regularly – Catch errors or overcharges early.
- Provide meter readings – Avoid inaccurate estimates.
- Check your balance – Understand whether you are in credit or owed.
- Review contract terms – Especially during renewals or supplier changes.
- Consider a TPI – Third-party intermediaries can help analyse charges, manage procurement, and handle disputes.