UTILITY SYNERGY
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COMMON QUESTIONS ABOUT BUSINESS ENERGY: ANSWERED
Business energy can raise questions about costs, contracts, billing, VAT and charges such as the Climate Change Levy. Here, we answer the most common questions about business energy in clear terms, helping you understand your bills, responsibilities and options.
You will also find practical information about working with Utility Synergy, from getting started and reviewing your energy bills to understanding common energy terms.
About Utility Synergy
How Do I Know Utility Synergy is The Right Consulting Agency For Me?
We limit the number of clients we work with so we can give your organisation the time and attention it needs. We take time to understand your requirements and provide clear business energy advice based on your costs, contracts and wider energy needs. You can also read more about Utility Synergy and how we work with organisations.
How Does Utility Synergy Decide Which Energy Suppliers to Recommend?
We assess energy suppliers against our ‘4 Cornerstones’ before recommending them to a client. These checks help us look beyond headline prices and consider whether a supplier is suitable for your organisation.
- Financial and Cyber Security: We assess financial stability, cybersecurity and data protection.
- Costs and Transparency: We review unit rates, standing charges, contract terms and exit costs.
- Customer Service: We look for clear support processes, timely issue resolution and proper escalation.
- Environmental Impact: We consider renewable energy options and environmental requirements where relevant.
Do You Charge a Fee for Your Services?
We are normally paid through commission included within the energy rates arranged for a customer. The commission payable to us by the supplier will always be disclosed before a contract is agreed. It is based on the estimated consumption for the term of the supply contract and the commission agreement we have with the supplier. There are no extra payments that the customer must pay directly to us. Please refer to our terms and conditions for further details.
Am I Obligated to Continue Using Utility Synergy Once I Have Signed Up?
No. There is no tie-in contract to use our services. We aim to earn your continued business through the results we deliver, including the savings we secure, the accuracy of your bills and the time we save you.
Getting Started with Us
What Happens After I Contact You?
Once you get in touch, we will review your current energy contracts and recent bills, understand your consumption profile and objectives, and then compare options across the market. Our business energy procurement process considers cost, contract terms and our 4 Cornerstones criteria before we present suitable recommendations.
What Information Do I Need to Provide to Receive a Quote?
Generally, a recent energy bill, whether gas, electric or water, is enough to get started, as it contains your supply details, current rates and consumption data. If you know your contract renewal date, this helps us time things correctly, but if not, we can find it for you.
How Long Does It Take to Switch or Renew a Contract?
This varies depending on your supplier, contract type and how close you are to a renewal date. We manage the process from start to finish and keep you updated throughout, so it requires minimal time from you.
What Types and Sizes of Organisations Does Utility Synergy Work With?
As a business energy consultancy, we work with businesses, charities, schools and public sector organisations of varying sizes. While we deliberately limit how many clients we take on to protect our level of service, this is a matter of capacity rather than company size. Get in touch, and we will be honest about whether we are the right fit.
Do You Operate across the Whole UK, or Only in London?
We support organisations nationwide. Our office is based in Covent Garden, London, but our services are not limited by location. You can find more information about who we help and the types of organisations we work with across the UK.
Do You Help with Water Services as Well as Gas and Electricity?
Yes. Alongside gas and electricity, we help organisations manage and reduce the cost of their water services too.
Billing, VAT and the Climate Change Levy
How Can I Check If My Business Energy Invoices Are Correct?
A regular business energy bill audit can help confirm that you are only paying for the energy your organisation has actually used. We check your invoices against consumption data, contract terms and applicable charges to identify billing errors or overpayments. Where issues are found, we can help you challenge them and recover money you may have overpaid.
Can You Help If I Believe I Am Currently Being Overcharged?
Yes. Bill validation is not something we only carry out at renewal. If you suspect an error on a current bill, we can review it against your actual consumption and contract terms at any point, and pursue a correction or refund with the supplier on your behalf.
What Is the Climate Change Levy?
The Climate Change Levy is a government-imposed tax designed to encourage businesses to reduce greenhouse gas emissions and use energy more efficiently. Current climate change levy rates are charged per unit or kWh used and are index-linked, meaning they are reviewed periodically. It applies to most business gas and electricity bills, and VAT can also be charged on the climate change levy on electricity bills, except where a supply qualifies for the reduced VAT rate.
Who Pays the Climate Change Levy, and Could My Business Be Exempt?
The Climate Change Levy is charged to the business as the end user and is added directly to your energy bill by your supplier. However, a climate change levy exemption applies to renewable energy supplies, and if your business qualifies for the reduced 5% VAT rate on energy, outlined below, you may also be exempt from paying some or all of the levy. We can review your eligibility as part of our VAT and billing checks.
Why Is VAT Calculated at 5% on Some Bills and 20% on Others?
Gas and electricity tariffs for businesses automatically have VAT added, and even though this technically counts as a business-to-business purchase, it cannot be claimed back. Most organisations pay the standard business energy VAT rate of 20%, but you may be eligible for a discounted 5% rate depending on your organisation type and how you use energy. You may qualify if:
- Your organisation is a charity or non-profit. You may even be able to claim back overpaid VAT for the previous four years if you were unknowingly overpaying.
- At least 60% of your energy use is for domestic purposes, for example, a care home or self-catering accommodation. The 5% rate applies to the whole bill if 60% or more of use is domestic, and below that threshold, only the domestic proportion qualifies.
- You have low energy usage, generally defined as under 1,000kWh of electricity per month (33kWh a day), or 4,397kWh of gas per month (145kWh a day).
Utility Synergy has helped several organisations correct their VAT status and reclaim thousands of pounds in overpayments. If you believe your business may qualify for the reduced rate, we can help you submit the correct VAT declaration form for each supply.
Energy Terms Explained
What Is a Feed-in Tariff (FiT)?
The Feed-in Tariff scheme is an environmental programme aimed at promoting small-scale, low-carbon electricity generation. It requires certain licensed electricity suppliers to pay fixed tariffs to micro and small renewable generators, and micro Combined Heat and Power (CHP) generators, for the electricity they generate and export to the National Grid. Tariff rates are set by the Department for Energy and Climate Change, while the scheme is administered by FIT Licensees and Ofgem.
What Is kVA or Agreed Supply Capacity?
kVA stands for 'kilovolt-amperes', also known as 'total power'. It represents the maximum power requirement for your premises, as agreed with your Distribution Network Operator. Getting your agreed supply capacity right matters. Set it too low, and you risk exceeding it and incurring penalty charges. Set it too high, and you may be paying more in standing charges than necessary.
Why Are Deemed Contract Rates So High?
Deemed contracts occur when a customer begins a new energy supply at a property but has not yet signed a formal supply contract. Rates on deemed contracts are higher because the power has to be acquired by the supplier on a daily basis, at a less economical rate, rather than being secured in advance under a fixed agreement.
What Is a Meter Operator Agreement?
A Meter Operator Agreement, or MOP contract, is a legal requirement for all half-hourly electricity-supplied meters. It covers the supply of the meter itself, its ongoing maintenance, and the telecommunications needed to send your consumption data to your energy supplier.
What Happens If My Energy Supplier Goes Out of Business?
Ofgem has a safety net process in place, which automatically transfers your supply to another supplier if yours becomes insolvent, so your organisation will not be left without power. That said, the process is not always straightforward. Outstanding credit balances are not always returned without a fight, and this can cost businesses time, money and stress. It is one of the reasons financial and cyber security form one of our 4 Cornerstones when recommending suppliers in the first place.
NEED HELP WITH YOUR BUSINESS ENERGY?
Still have a question that is not covered here? These are simply the common questions about business energy that come up most often. Every organisation's situation is different, so if you would like tailored business energy advice for your business, charity or public sector organisation, get in touch with our team today.