You might find the procedure of business electricity bills very complicated at the initial stage. Once you understand its whole process, you can easily compare the units of usage with the electricity bill’s cost. The complete knowledge of bills is necessary to check whether the bill is accurate or not. You no need to make any additional efforts for understanding business electricity bills; it is the same as that of household electricity bills. The only difference between both of them is of suppliers.

Your business electricity bill includes a complete breakdown of the charges and also the account information. Today, the bills can be paid online. So account information is necessary to provide because you can directly transfer the payment of a bill with this. In some cases, you may also get a payment slip as proof of the business electricity bill.

The account information includes the following:

Account number- it includes the account number that is provided to you by your bank.

Bill date- it includes the date when the business electricity bill you receive

Bill number- every bill has its unique number used for reference

Billing period- this includes the time period in which you need to pay the bill.

Type of charge- in this column, it is mentioned whether it is an estimated or accurate amount.

Meter Serial Number (MSN) – it is a unique number through which your electricity meter is identified.

Meter Point Administration Number (MPAN) – it is a meter supply identification number of 21 digits.

VAT number- a VAT number is registered to you for the payment of the bill

Your complete details- it includes the address and name of your business.

Contact details- your mobile number to contact the supplier in case of any wrong information

Contract details- the bill specifies the type of tariff implied on you and its last date.

List of the breakdown of charges

VAT charges- the business electricity bill includes a VAT rate of 20%, the VAT rate of domestic electricity is only 5%.

Outstanding charges – it includes your due charges that are still pending from the last bills.

Total amount due- it includes the total of all amount that is pending from past bills.

Billing period charges- it includes the amount you need to pay for a specific period of time.

The different costs included in the electricity bill

Some businesses emit carbon; this practice is discouraged by imposing heavy taxes on such businesses. The Climate Change Levy is a type of tax charged in addition to the business electricity bill to discourage this practice. The additional charge is imposed on the businesses to encourage inefficiencies and less wastage.

You need to pay for the electricity you use per unit. In fixed-term contracts, the rate of bills is generally fixed, but in variable contracts, the amount might go up or down. The type of contract affects the amount you need to pay.


Businesses are charged with low units as compared to domestic electricity charges. The businesses generally use a large volume of electricity that is why per unit cost of business electricity is less.