Do you understand your commercial gas bill?
Most people are confused by energy bills. Industry jargon and complicated figures don’t help, but if you don’t know what all the numbers on your gas bills mean, you should take the trouble to find out. Energy bills are often flawed, and examples of inaccurate billing are common.
The main things to check on your gas bills are missing payments, estimated consumption, misapplied VAT rates, unwarranted Climate Change Levy (CCL) payments, inaccurate tariff, wrong standing charges and unusual consumption levels. The guide below should give you some clarity.
All gas bills should contain:
- The supply address – the address where you use the gas
- Your account number – you’ll need to quote this when you contact your suppler
- Supplier’s phone number
- Payment Due date
- Emergency contact number if you have a problem with supply
- Information regarding the supplier’s Dispute/Complaints Process
- A guide to frequently asked questions
- The date the contract is due to end (this is for Micro Businesses only)
If you are receiving bills for multiple sites, each site should be clearly identified and contain individual data for each MPRN.
Suppliers use differing billing formats, but the itemised elements below should appear on all gas bills.
Before starting, make sure your bill relates to the site and specific MPRN you are checking.
Do you need help with your gas bills? We can check them for you, call us now.
1 – The statement provides a record of your past balance, any payments received, and your new balance.
2 – MSN = Meter Serial Number. Not to be confused with your MPRN. The meter serial number relates purely to the meter and can be found printed on the front of your gas meter.
3 – Meter Point Reference Number (MPRN). The unique identifier for the supply point. It is formed of up to 11 numbers.
4 – Period of use. Your bill is based on the gas consumed over this period, along with the standing charge, normally based on a cost per day.
5 – This is the opening meter read for this period. Be aware of the following letters:
A = Actual consumption.
C = A meter reading from the Customer.
E = Estimated consumption.
S = a Smart Meter reading.
The E denotes an estimated reading which means it is unlikely to be accurate. If you continue to see Estimated meter readings it is important to contact your supplier. If you have a Smart Meter, you may think it is returning accurate meter readings on a regular basis. This is not always the case, so be aware.
You could be building up a large debt, alternatively, your supplier may be keeping a lot of your valuable cash in their bank account.
6 – This is the closing meter read for the allotted period. This shows A for actual consumption.
7 – Meter Unit: This relates to the measurement format. M3 refers to meters cubed (M3). Other meters measure in cubic feet (ft3).
8 – CF = Conversion Factor. Your consumption is measured in Kilowatt hours (kWh) and CF is the figure used to convert M3 into kWh)
9 – Calorific Value: Is not a fixed value. It relates to the amount of heat generated from a known volume of gas as it burns completely. CVs differ from region to region, and from day to day, and can range from 37.5 to 43.0.
10 – Energy: This the amount of gas you have consumed in kWh.
11 – Price (p/unit): This is the tariff that you agreed in your gas contract measured in pence per kWh. Make sure that the unit rate matches that on your agreed supply contract.
12 – Cost: This is arrived at by multiplying Energy by Price per unit. 123,264.7 x 2.5080 pence = £3,091.48
13 – Daily Charge: This is the daily agreed standing charge based on a cost per day. In this example: £16.84 per day x 30 days. Standing charges relate to the size of the meter, and the supply. If you have a meter installed that is larger than you require, you are wasting money. Make sure that the Standing Charge matches that on your agreed supply contract.
Do you need to check that you have the most appropriately sized meter installed? Oversized meters are unnecessary and costly.
14 – Climate Change Levy (CCL): this is an environmental tax applied by the government and levied on each kWh you use. If you are a charity, you may find you could be exempt from CCL.
15 – VAT: This is normally applied at 20% on the whole bill. Certain types of organisations qualify for reduced rate VAT and CCL Exemption.
Do you want to check if you qualify for VAT reduction and CCL Exemption?
16 – Total Due: this is the sum of all the listed items.
17 – Balance due: this is the sum of the total due and any unpaid invoices. It’s wise to keep unpaid invoices to a minimum.
Reasons to check your gas bill
Checking your gas bill enables you to:
- Monitor and control your energy usage
- Consider switching your gas supplier
- Ensure the accuracy of your bills
- Prevent over or underpaying for your gas or electricity
- Stay up to date with changes to your tariff