Utility bills can become confusing if you are unsure of how they should be read, especially if it’s the first time you have received a business utility bill. 

To avoid any confusion, make sure you fully understand all the ins and outs of business gas and electricity bills. This post will provide some insight on how you would calculate as well as informing you about the hidden costs associated with utility bills. 

Before you make the switch from your current utility suppliers to find the cheapest business electricity, there are a few things that are important for you to know which will help you understand your energy and gas bills better. 

How Are Business’s Energy and Gas Bills Calculated 

The bill you get each month will be dependent on the following factors: 

  • Taxes and Levies 
  • The Standard Charge 
  • The amount of energy and gas that you use for that month 

If you have any outstanding energy and gas bills, these costs will be directly added to the new bill you receive until you have cleared your debt. 

Standard Business Energy and Gas Bill 

When you receive your monthly gas and energy bill. You will see these charges when you check your energy bill. 

Unit Rate 

The unit rate is the charge per unit of energy and gas you used throughout the period. The price is set at per kilowatt hour (kWh).  

Standard Charge 

This is the everyday stand-alone fee you pay for the energy and gas supply to your business. This is not calculated according to your unit rates or how much energy and gas you’ve used for the month. 

Smart Metre Charges 

Depending on your utility supplier, a smart meter has become one of the standard methods to give accurate energy and gas readings. 

These come at a cost as well. 

IGT Charges 

These are Independent Gas Transport Charges used by business premises to have their utilities supplied to them instead of the National Grid Transco. 

These charges are billed to your account as a different pipe network has to be used to supply the business. The gas supplier would be liable for these costs but charge you to make back the money after supplying you. 

Contract End Date 

The date by which your contract will end with your current supplier. 


The standard 20% that all businesses are charged on their utilities, however, this is reduced to 5% if the business uses under 33 kWh of electricity or 145 kWh of gas per day. 

Climate Change Levy (CCL) 

This is the government levy you have to pay for units of non-renewable energy your business uses. 

The Hidden Costs Added to Your Energy and Gas Bill 

Some costs aren’t found on your energy and gas bills, these can average to be about 50% of your bill. 

Industry Charges 

These charges are necessary to keep the industry functioning as smoothly as possible. These include the following: 

  • Wires
  • Network of pipes 
  • Suppliers 
  • Regulators 
  • Authorities 

These need constant maintenance and support to keep the industry in working condition. 

Transmission & Distribution 

This is the cost of transferring and distributing your energy and gas to the correct pipes and wires you require for your business. 


These charges are in place of electricity and gas that might get lost along the way during the transmission and distribution of your business supply. 

Wholesale Energy 

The price of energy changes constantly and depending on the contract terms you are on. 

Supplier Margins 

Energy suppliers also have to make some kind of profit, considering how they have to cover many costs such as acquisition, marketing and administration costs. These will be worked into their price and affect your energy and gas bill. 


The fees can include reading your meter, and maintaining your meter and are considered a physical asset of the business. 

Government Initiatives 

Things such as Climate Change Levy and other initiatives can also have changes in the pricing of your bill as the government starts programs to help drive renewable energy or other kinds of assistance for utility suppliers. 


The above in-depth list of what you will find on your energy and gas bill will explain the charges that you will see on your energy and gas bill. 

Be sure to check if you are billed correctly, comparing the price charged to the number of units that you have used, and keep tabs on when your contract ends and which tariff your business is on so that you can make a change if you are being charged more than the rates you are supposed to be paying. 

Hold onto payment receipts and keep track of your business energy and gas usage to keep a record.