Your Business Energy Bill, Explained

by Redeeming Riches on June 10, 2013

Wouldn’t it be fabulous if your gas and electricity bill was based wholly on what energy you actually use? Unfortunately, your bill doesn’t just reflect what energy you’ve used, instead including various elements that add to your British Gas business electricity bill that are completely inevitable. In fact, wholesale gas and electricity only makes up around half of the total cost for businesses, with several other factors being part of the overall price.

These additional components will contribute to your monthly bill and while individually, don’t cost much at all, they do all add up. This is why trying to keep a hold on your spending is essential, in an attempt to keep your energy bills as low as possible. Large business electricity rates can be avoided if you keep a tab on what you’re using the energy for, even in an industrial setting.

While wholesale gas and electricity makes up half of your final bill, there are four other components that come together to make the other half:

The Distribution Cost is the fee charged by the independent distributor who delivers the energy to your business. Where you are in the country will affect this fee.

The Operating Costs ensure that customer accounts are maintained and continue to operate smoothly.

Profits are returns made to shareholders as well as money plugged into research and development of such things as renewable sources for a sustainable future.

Taxes and Environmental Contributions, such as VAT, corporation tax and Climate Change Levy which helps to raise incentive and reduce emissions.

Your business’ monthly bill includes all of these components to give you the final cost. Reducing how much energy you use will inevitably help to lower this value, making a difference to your overheads as well as the environment. Take the initiative as a business owner and implement some changes to your energy consumption – small changes can go a long way!

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