Business energy bills encompass a variety of expenses beyond simply the gas and electricity consumed by your enterprise. Typically, your energy invoice will also incorporate the following components:
These are the charges incurred for the purchase of energy required to fulfil your business’s needs. Typically, wholesale costs make up approximately one-third of your energy bill. Energy suppliers procure this energy from gas producers and electricity generators in the wholesale marketplace.
Network companies levy regulated fees on your energy supplier for the utilization of the energy distribution network. This network encompasses all the gas pipelines and electricity cables responsible for transporting energy from across the country to your business.
Social and Environmental Obligation Costs
Larger energy consumers are obligated to contribute to the expenses associated with government energy policies. These costs are designed to promote the adoption of renewable technologies, facilitate energy efficiency enhancements in residences and businesses, and support other environmental initiatives.
Supplier Operating and Margin Costs
When setting prices, energy suppliers take into consideration their operational expenses to generate a profit. These operating costs encompass various aspects, including the overall operation of an energy company and customer service charges.
These expenses encompass a range of items such as meter maintenance and installation, third-party services, administrative expenditures, and more.
In summary, your business energy bill is a composite of multiple cost components that extend beyond the actual energy consumption, reflecting the intricacies of the energy supply and distribution process.