Want to reduce your energy costs fast? Start by reviewing your energy bills and contracts—you may be paying more than you need. Here’s how to take control:
1. Energy Usage
Has your supplier based your latest bill on actual readings or estimates? Either way, do your current meter readings match those listed on your bills? Checking this can be tedious—especially if you have multiple meters, but it’s well worth the effort.
Some suppliers make their bills unnecessarily confusing, and we’ve spent years learning how to navigate even the trickiest energy statements. We’d be more than happy to explain exactly how your bill is made up and identify any potential errors or overcharges.
Feel free to contact us for a free bill review – we’ll take the stress out of understanding your energy costs.
2. Are you still under contract?
Most businesses will have a contract with an energy supplier, typically 2 to 5 years.
At the end of these contracts some suppliers are proactive and will contact the customer in good time, to organise a new contract.
Some however, choose not to contact their customers, and as a result that business will default to a more expensive tariff.
You need to check whether you are still under contract with your current supplier. Check the dates on your most recent bill.
We recently helped a local fish and chip shop save £2,000 per year. Their contract had slipped, and they were being charged exorbitant out-of-contract (OOC) rates. By reviewing their situation and switching them back onto a fair contract, we immediately reduced their energy costs – no extra effort for them.
This example shows how even small businesses can lose significant money if contracts aren’t actively monitored.
Feel free to contact us for a free bill review – we’ll take the stress out of understanding your energy costs.
3. VAT
Most businesses pay 20% VAT on the energy they use, which your supplier automatically adds to your bills. However, some organisations may qualify for the reduced 5% rate, including:
- Charities
- Care homes
- Houses in Multiple Occupation (HMO)
What to do:
- Check if your business is eligible for the lower rate.
- If your supplier is charging 20% when you should be paying 5%, request a VAT declaration form from them.
- You can claim back overpaid VAT for up to four years.
How we help:
We review your bills, check VAT charges, and guide you through reclaiming any overpaid amounts—saving you money without the hassle.
4. Climate Change Levy (CCL)
The Climate Change Levy (CCL) is an energy tax applied to electricity and gas bills to encourage efficiency and reduce carbon emissions.
Key points:
- Suppliers add it to bills just like VAT.
- Some businesses, such as charities, may be exempt or eligible for a lower rate.
- High-usage businesses can reduce charges by signing up for a Climate Change Agreement (CCA).
What to do:
- Ensure your supplier is applying the correct CCL rate.
- If you qualify for exemptions or lower rates, provide the necessary documentation.
How we help:
We check your bills for correct CCL application and help businesses take advantage of any exemptions or reductions they’re entitled to.
5. Volume / Usage Tolerance
Energy contracts often include predicted usage, sometimes called volume or usage tolerance. If your actual usage is far above or below this figure, you could face:
- Penalty charges for exceeding predicted usage
- Overpayment if your supplier miscalculates your energy requirements
Why this happens:
- Your business may have used more energy than expected
- Reduced operations (for example, temporary closures during COVID-19) could lower usage
- Suppliers may have misinterpreted your energy needs
What to do:
- Compare your actual energy use with the contract’s predicted tolerance.
- Contact your supplier if your usage is significantly different from the stated limits.
How we help:
We review your contract, check usage against tolerance levels, and negotiate with suppliers to prevent unnecessary penalties or overcharges.
Conclusion: Start Saving Today
We hope these tips have helped you spot potential savings on your current energy bills and highlighted ways to reduce consumption in the future.
For example: we recently helped a football club save over £1,000 per year just by switching their floodlight energy contract. Even small areas of energy usage can lead to significant savings when bills and contracts are carefully reviewed.
If you’d like expert advice on any energy-related matter – or a free review of your bills to uncover hidden savings – we’d be delighted to help.
Visit www.letsnailenergy.co.uk or call Pete Nailer on 07942 779606 to get started.