A business electricity bill tells you three things: which supply you're paying for, how much you used, and what you're being charged for it. The charges are usually a unit rate for each kWh, a daily standing charge, the Climate Change Levy and VAT. Whenever a bill arrives, check that the readings are real, the rates match your contract and your contract end date hasn't passed.
Your bill at a glance
Every supplier lays out its bills differently, but they all contain the same basic parts.
The parts of a business electricity bill
| Part of the bill | What it tells you |
|---|---|
| Account details | Who's billed, for which site, and for which dates |
| Supply number (MPAN) | The unique number for your electricity supply |
| Meter readings | How much you used, and whether the readings are actual or estimated |
| Unit rates | What you pay for each kWh |
| Standing charge | What you pay each day, whatever you use |
| Climate Change Levy | A government tax on the energy businesses use |
| VAT | 20% for most businesses, and less for some |
| Contract details | Your tariff, and when your contract ends |
The sections below go through each part in turn.
Account details
You'll usually find these at the top of the first page:
- Account number: quote it whenever you contact your supplier.
- Supply address: check it's the right site, especially if you have more than one.
- Billing period: the dates the bill covers. It's worth checking there are no gaps or overlaps with your last bill.
- Bill date and due date: when the bill was issued and when payment is due.
Your supply number (MPAN)
Your MPAN is the unique number for your electricity supply. It's usually shown in a box marked "S", with two rows of numbers.
- The bottom row is the 13-digit core that identifies your supply, and its first two digits show which network operator runs your local network.
- The top row holds codes about your meter and your network charges. Suppliers and brokers use them, with the bottom row, to price a quote, so give both rows when you ask for one.
Our guide to MPAN numbers explains what each part means and how to find yours without a bill.
You'll need your MPAN to get quotes or to switch supplier. Gas bills use a different number, called the MPRN.
Meter readings
Your bill shows the previous and current readings, and the number of kWh you used in between. If your meter has more than one rate, such as day and night, each rate has its own reading.
Most bills mark each reading to show where it came from:
- Actual (A): read from your meter, either by your supplier or by a smart meter.
- Customer (C): a reading you sent in.
- Estimated (E): your supplier's guess, based on your past use.
One or two estimates are normal, but a long run of them means your bills could be well out, in either direction. If that's happening, send in a reading, and check that the meter serial number on your bill matches the one on your meter.
If you're a microbusiness, your supplier usually can't bill you for energy used more than 12 months ago if it didn't bill you correctly at the time. The limit covers standing charges too. It doesn't apply if you behaved in an obstructive or manifestly unreasonable way, for example by stopping your supplier getting access to the meter. Not sending meter readings doesn't count.
Unit rates
The unit rate is what you pay for each kWh you use, shown in pence per kWh. If your meter has more than one rate, such as day and night, each has its own unit rate and its own line on the bill.
Check that the rates match the ones in your contract. If they've changed without you agreeing to it, your contract may have ended.
Standing charge
The standing charge is a fixed amount you pay each day, even on days you use no energy, and it covers costs such as keeping your site connected. It's usually shown in pence per day, multiplied by the number of days in the billing period. Check that it matches your contract too.
Extra charges for larger sites
Larger sites, usually those with half-hourly meters, may see other lines on the bill as well:
- a capacity or availability charge, for the size of your connection, measured in kVA;
- a reactive power charge, measured in kVArh, if your equipment draws power inefficiently;
- network and industry charges listed separately, if your contract passes them straight through to you.
Our guide to half-hourly meters explains each of these charges.
Climate Change Levy
The Climate Change Levy is a government tax on the energy businesses use, charged on every kWh. From 1 April 2026 to 31 March 2027 it's 0.801p per kWh. It isn't charged on energy used in residential accommodation, such as care homes, for activities a charity doesn't charge for, or at very small sites.
VAT
Most businesses pay 20% VAT on the whole bill, including the standing charge and the levy. Some uses qualify for a lower rate, such as care homes, a charity's non-business activities and very small sites using no more than 33 kWh a day on average. From 1 October 2026 to 31 March 2027, the rate on qualifying electricity in Great Britain is 0%. In Northern Ireland, it stays at 5%.
How it adds up
Your total is usually worked out like this:
- the kWh you used, times your unit rate;
- plus the days in the billing period, times your standing charge;
- plus the Climate Change Levy on the kWh you used;
- plus VAT on all of it.
Contract details
Look for your tariff name and your contract end date. If your bill says "deemed", "out of contract" or "variable", or the end date has already passed, you may no longer be on a fixed contract. Deemed and out-of-contract rates are usually higher than contract rates.
Six things to check on every bill
- The right site. The supply address and MPAN match the site you're paying for.
- No gaps. The billing period carries on from your last bill.
- Real readings. The readings are actual or your own, not a long run of estimates.
- The right rates. The unit rates and standing charge match your contract.
- The right taxes. The Climate Change Levy and VAT are charged at the right rate for how you use the energy.
- A live contract. Your contract end date hasn't passed.
If something looks wrong, contact your supplier first, and have your account number and a photo of your meter to hand.
Want us to check your rates? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
Questions about business electricity bills
Where do I find my MPAN on my bill?
It's usually in a box marked "S", with two rows of numbers. The bottom row is the 13-digit core that identifies your supply.
What does "E" mean next to a meter reading?
It means the reading is estimated, based on your past use. Send your supplier a meter reading so that your next bill is accurate.
What is a standing charge?
It's a fixed amount you pay each day for your supply, even on days you use no energy. On your bill, it's usually shown in pence per day.
Why is my business electricity bill so high?
Often it's because estimated readings have been corrected, or because your contract has ended and you've been moved onto deemed or out-of-contract rates. Using more in winter and higher rates at renewal are other common reasons. On larger sites with half-hourly meters, capacity charges and network charges that depend on when you use electricity can add to the bill too.
What is kVA on my electricity bill?
It's the capacity of your connection. Larger sites often pay a charge based on it, whether or not they use all of it.
How far back can my supplier bill me?
If you're a microbusiness, usually no more than 12 months for energy it didn't bill you for correctly at the time. Other businesses, including small businesses, aren't covered by that limit. For them, it depends on their contract and on the general legal time limits for claiming money owed under a contract: usually six years in England and Wales, and five years in Scotland.
Sources
- Ofgem, understand your electricity and gas bills: unit rates, standing charges, and contacting your supplier first.
- Ofgem, supply number format decision (REC change R0083): the two rows of the supply number.
- Ofgem, ban on backbilling beyond 12 months: the 12-month limit for microbusinesses.
- Ofgem, backbilling licence modification, standard condition 21BA (5 March 2018): the 12-month limit, standing charges included, and the exception for obstructive or manifestly unreasonable behaviour.
- Ofgem, what to do if you get a back bill: the 12-month rules apply to households and microbusinesses.
- Limitation Act 1980, section 5 and Prescription and Limitation (Scotland) Act 1973, section 6: the general six-year limit for contract claims in England and Wales, and five years in Scotland.
- HMRC, Climate Change Levy rates: the levy rate.
- HMRC, VAT on fuel and power (VAT Notice 701/19) (updated 8 September 2026): VAT on the whole bill, including the standing charge; the lower rate for qualifying use; 0% on qualifying electricity in Great Britain from 1 October 2026 to 31 March 2027, and 5% in Northern Ireland.
- HMRC, VAT Fuel and Power Manual, VFUP5000 (updated 9 December 2022): VAT is charged on the value including the Climate Change Levy; domestic and charity non-business supplies are excluded from the levy.