Why Your Energy Bill Isn’t Just About the Unit Price

When most business owners review their energy costs, they focus on one number: the unit price per kilowatt-hour (kWh). It’s understandable, it’s the most visible figure on a bill, and it’s where most people assume the biggest savings lie.

But as J.D. Wetherspoon’s chairman recently highlighted in The Guardian, that’s no longer the full picture. The pub chain giant has criticised the rising non-commodity costs. Things like levies, grid fees, and network charges now make up a significant portion of business electricity bills.

The Hidden Half of Your Bill

Non-commodity costs are essentially the “extras” that cover things like:

• The cost of maintaining and upgrading the national grid

• Government levies and environmental schemes

• Transmission and distribution charges

• Balancing costs that keep the electricity system stable

  
  

Over the past decade, these charges have steadily increased. In some sectors, they can now account for more than half of the total bill. That means even if your unit rate is competitive, your overall spend could still be much higher than it needs to be.

Why It Matters for Businesses

For businesses working to control overheads, ignoring these costs can lead to serious budgeting blind spots. It’s not enough to compare contracts based on pence per kWh alone. Two suppliers could offer the same unit rate, yet one might apply far higher network or levy charges behind the scenes.

That’s exactly why PPS For Business takes a deeper approach.

How PPS Helps You See the Full Picture

At PPS, we don’t just help you secure a competitive rate; we help you understand where every pound on your energy bill is going.

Our energy specialists:

✅ Break down every component of your energy bill, so you can see the true cost of supply versus non-commodity charges.

✅ Benchmark your costs against industry standards to identify hidden inefficiencies.

✅ Negotiate contracts transparently, ensuring no inflated or unclear charges.

It’s this line-by-line clarity that helps our clients uncover savings others overlook.

What You Can Do Right Now

If you haven’t looked at the breakdown of your energy bill recently, here are three simple checks you can make today:

1. Review your invoices to see how much of your total cost relates to delivery, environmental or system charges.

2. Ask your broker or supplier for a breakdown to know exactly what you’re paying for.

3. Plan for change. Non-commodity costs will continue to shift as the UK transitions to low-carbon energy. Knowing where you stand now will help you plan ahead.

   
   

Clarity Comes First

At PPS For Business, transparency isn’t optional; it’s a non-negotiable. We believe every business owner should understand what they’re paying for, why, and how they can reduce it.

If you’re unsure how much of your bill is really under your control, our team can help you find out.

Get in touch today to book a free, no-obligation energy review and see where the real opportunities to save might be hiding.