How is my bill made up?
Unit rates are shown in ‘pence per kilowatt hour (kWh) on your bill.
Calculated as; Units used x pence per kWh = cost for gas/electricity used for that period.
A standing charge is a fixed administrative, installation or maintenance cost that’s associated with providing your energy supply, such as; local network charges for the wires and pipes to your business and manual meter reading costs.
These are usually priced in ‘pence per day’ e.g. Days x pence per day = Standing Charge for that period.
Climate Change Levy (CCL)
CCL was introduced on 1st April 2001. The Climate Change Levy (CCL) is a tax on UK business energy use, charged at the time of supply.
Climate Change Levy is applicable to every unit used and is currently (2014/15) charged at the p/kWh rate of 0.541p/kWh.
VAT is itemised on your business energy bill as a separate amount.
The standard amount for Business VAT is 20%.
Domestic VAT is set at 5%.
Exemption or Partial Exemption
As a business customer, you may you may be entitled to pay domestic VAT rates if; you are a charity or use less than an average of 33 units (kWh) per day for your energy use or you
As a business, if you believe that you should only be paying VAT at 5%, you will need to complete a VAT exemption form that can be obtained from www.gov.uk
Renewable Obligations (RO)
The Renewables Obligation (RO) came into effect in England, Wales and Scotland in 2002 and in Northern Ireland in 2005. It is the main support mechanism for renewable electricity projects in the UK.
It places an obligation on UK electricity suppliers to source an increasing proportion of the electricity they supply from renewable sources.
For information on how the obligation level is set each year please see the Department of Energy and Climate Change (DECC) website.