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Understanding your electricity bill

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Aren’t we all a lover of bills?

Of course not, but they are a necessary evil and expense to us all. But how often have you examined exactly what your bill is for?
There are of course some bills which are quite simple to interpret such as a mobile phone bill. You have your tariff or allowance and you’re then changed for additional usage over that amount; 500 mins, various texts and internet usage, quite straightforward. Alas all are not this simple, especially when your business is consuming high amounts of electricity.

Let’s consider your electricity bill. Do you know what all the charges are for? Do you know all the technical terminology used in your bill?

I’ll be honest, not all of us do. Quite scary when you consider how much some businesses are paying per month on energy costs; tens of thousands of pounds in some cases, such as large factories or businesses across various sites etc.

Analysing some terminology lets unpick the puzzle that is the electricity bill.


Triad charges can be very costly. A client of ours was charged £1,183 for the 90 minutes of electricity usage. Red unit charges can also be very costly to your business. The same client for one month received a bill with Red Unit costs amounting to a £1,032.84. This is the time when there weren’t many people on premises working via computers sitting on standby, lights still on etc. This ultimately results in the lowest amount of use, with the highest expense. These costs all add up and our client ultimately had to pay out £15,246.18 for just one months’ use of energy!

It’s only once you can see the problem, see the expenses, you can begin to implement solutions to be more cost effective during this incredibly expensive time.

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