How many times have you looked into your monthly electricity bill in detail? Have you ever wondered what the amounts represent exactly? Do you understand them all?
As a business consumer, you probably don’t have the time to look into details, but you would probably still like to know where your money goes along with the best way to optimise your consumption and potentially make some savings.
Hopefully by the end of this article you will have more insight into what you are charged for, and you will have a better understanding of your monthly payments.
Here is a breakdown of the main components of an electricity invoice:
Invoice address – This is the address to which the invoices are sent. This can be the main office or any other address where you want to receive them.
Supply address – This is the address for which you are charged.
Account number – Unique number assigned to you by the supplier. Based on this number, it is much easier to communicate with them in order to resolve any potential queries.
Invoice number – Unique number assigned to each invoice.
Supply number/MPAN(Meter Point Administration Number) – Unique number assigned to your meter that provides information about it to the supplier. It is found typically at the bottom of the electricity invoice. This is what makes up the supply number:
Profile Class – These are the first two digits of the top line. They represent the type of meter. Profile class 00 is for half hourly, profiles 01-02 are domestic, 03-04 are SME, and 05-08 are considered maximum demand.
MTC – This is short for Meter Time Switch Class. It provides information on the metering it is capable of, e.g. singe rate, day/night, and others.
LLFC – This is short for Line Loss Factor Class. It is used to calculate Distribution Use of System (DUoS) charges.
Core MPAN –This is the most unique number set and it is specific to your meter. It has 13 digits. The first two digits, in particular, identify the area in which the meter/distributor is located. The UK has 14 distribution areas. These will be covered at a later time.
If your profile class is 00, then that means your meter is half hourly and that it produces half hourly readings, which are compiled by a Data Collector. The Data Collector then provides the readings to your supplier who is able to produce an invoice.
All other profiles are non half hourly (NHH).
In order to produce an NHH bill, the meter reads need to be provided manually. In some cases, the client reads the meter and sends the reading over to the supplier, but most of the time, if the supplier doesn’t have meter reads, they estimate them.
That can be tricky because in some cases your bill can be overestimated and you may end up paying for more than you actually consumed.
On the other hand, the reads can also be underestimated, and by the time the supplier recalculates and rebills to correct the readings, your current month’s operations and payments end up being affected.
Here are short explanations for charges that appear on most bills:.
If the set capacity, for example, is 200 KVA, and during the month your consumption goes over that amount, the supplier will charge you for the excess capacity. The excess capacity rate is in most cases the same as the capacity rate.
Hopefully, now you understand what makes up your electricity invoices and what you are paying for. Mistakes and discrepancies can and do happen, and it is important to notice and correct them to avoid any further potential overcharges.