How to check your business electricity bill: a 10-point checklist
You don't need to be an energy expert to check a business electricity bill. Most errors show up when you compare the bill with itself and with a few published rules. Have the bill and a calculator ready; it takes about ten minutes.
1. The billing period
Find the start and end dates. Count the days including both ends: 1 to 31 August is 31 days, not 30. You need this number for several checks below.
2. The supply number (MPAN)
The 13-digit core MPAN identifies your meter. Check it is your site. A wrong MPAN can mean you are paying for someone else's meter. The last digit is a check digit, so a misprint is often detectable.
3. Meter reads
The units billed should equal the closing read minus the opening read (for each register). Look at the letter next to each read: A (actual), C (customer) or E (estimated).
4. Estimated reads
An estimated closing read means the supplier guessed your usage. Estimated reads can lead to catch-up bills later. Send an actual read or a dated photo of the meter so the next bill is corrected.
5. Standing-charge days
The standing charge is a daily fee. The days charged should match the billing period from step 1. Charging 34 days for a 31-day month is a common, easily proven error. See how to spot it.
6. Line maths
For each line, multiply the quantity by the rate. Rates are usually in pence, so divide by 100 for pounds: 900 kWh × 28.50p = £256.50. Then check the lines add up to the net total.
7. VAT rate
Work out the average kWh a day (kWh ÷ days). If it is no more than 33 kWh a day, the supply is de minimis and should get reduced-rate VAT: 5%, or 0% for electricity in Great Britain from 1 October 2026 to 31 March 2027. Larger supplies without a declaration pay 20%. The VAT guide explains the details. Source: Fuel and power (VAT Notice 701/19).
8. VAT arithmetic and the total
VAT should be the stated rate of the net amount, and the total should be net plus VAT. If the bill includes a brought-forward balance, make sure you are comparing this period only.
9. Climate Change Levy
CCL is charged per kWh at the rate for the dates: 0.801p per kWh for electricity from 1 April 2026. A de minimis supply should normally have no CCL at all. Source: Climate Change Levy rates (GOV.UK). More in the CCL guide.
10. Contract rates and old usage
Compare the unit rate and standing charge with your contract. If your fixed contract has ended, you may be on much higher rollover or deemed rates; ask for a new contract. Also check the dates: for microbusinesses, suppliers generally may not bill energy used more than 12 months before the bill (see Ofgem: Modification of the electricity and gas supply licences to introduce rules on backbilling (decision, 5 March 2018)).
Make it a habit
Check each bill when it arrives rather than once a year. Errors such as extra standing-charge days or the wrong VAT rate tend to repeat on every bill until someone notices, and correcting one bill is far easier than unpicking a year of them. Keep the bills, your meter photos and any letters together.
Found a problem?
Write to your supplier with the figures: what the bill says, what it should say, and the rule or source. Ask them to correct and re-issue the bill. If they don't resolve it, see how to escalate a complaint.
CheckEnergyBill runs these checks automatically and writes the complaint email for you. Check a bill free.