Why has my business energy bill gone up?
A business energy bill can jump for reasons that have nothing to do with using more energy. Most of the time it is a contract that lapsed, an estimated read or a standing charge quietly rising. Here are the usual causes and how to tell which one is hitting you.
The usual reasons a bill rises
When a business energy bill goes up without an obvious change in how the site is run, the cause is almost always in the pricing rather than the usage. The most common is a fixed contract that has ended and rolled onto deemed or out of contract rates, which are among the most expensive in the market and apply the moment a deal lapses. Close behind is the estimated read, where the supplier bills a guess instead of your real usage, and guesses tend to run high.
Other causes stack on top. Standing charges have risen across the market, so you pay more per day before using a single unit. On larger sites an agreed capacity that is set too high adds cost every month. Wholesale prices move, and a renewal offered in a volatile period can lock in a higher rate. And seasonal swings mean a cold quarter simply uses more. The trick is working out which of these applies, because the fix is different for each.
If your bill says estimated, or you cannot remember your last renewal date, start there. Those two explain most surprise increases.
How to find the cause on your bill
Check the contract status
If your fixed deal has ended you may be on deemed rates. Moving back onto a fair contract is the single biggest fix.
Look for estimated reads
An estimated bill is a guess. Submit a meter reading and an inflated charge often corrects itself.
Compare the standing charge
The fixed daily charge may have risen. It is worth knowing how much of the increase is standing charge rather than usage.
Review agreed capacity
On larger sites, capacity set higher than you use adds cost every month for nothing.
Note the period
A colder or busier quarter uses more energy. Compare like for like periods before assuming a pricing problem.
Check VAT and CCL
Tax and the Climate Change Levy affect the total. Some businesses qualify for a reduced rate they are not claiming.
Common questions
My usage is the same, so why is the bill higher?
Usually the pricing changed, not the usage. A lapsed contract on deemed rates, a higher standing charge or an estimated read are the most common reasons.
What are deemed rates?
They are the default rates a supplier applies when you have no agreed contract, for example after a fixed deal ends. They are typically far higher than a fair renewal.
Can I get money back from an estimated bill?
Often yes. Submitting an accurate meter reading can trigger a corrected bill if you were charged on an estimate that was too high.
How can OptiFlow Watch help?
We read your bill line by line, find why it rose and, where a switch saves money, move you onto a fair rate with the saving guaranteed in writing.
More from OptiFlow Watch
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