One in Five Business Energy Bills Contain Errors
Could Your Business Be Paying Too Much?
In today’s economic climate, controlling costs is more important than ever and energy expenditure remains one of the most significant overheads for many organisations. Yet surprisingly, it’s estimated that one in every five business energy bills contains errors, often leading to companies overpaying, sometimes by thousands of pounds without even realising.
These errors aren’t always obvious. They can easily go unnoticed amidst complex invoices, fluctuating tariffs, and a tangled web of suppliers, brokers, and network operators. But the cost to your business can be very real.
In this article, we explore why billing errors occur, the risks they pose, and how historical audits and validation can help your business reclaim overpayments and secure future savings.
Why Do Billing Errors Happen?
At first glance, you might expect that billing for something as measurable as energy should be simple. However, the reality is very different, particularly for businesses.
Here’s why:
- Complex Supply Chains:
The journey from electricity or gas generation to your premises involves multiple parties, including suppliers, transporters, network operators, and data collectors. Each stage generates its own data and passes it down the line. When this data doesn’t match or is misinterpreted, errors creep in. - Data Handling and Human Error:
Mistakes often occur when information is entered manually or transferred between systems. Incorrect meter readings, wrong unit rates, or even the misclassification of sites can lead to costly billing inaccuracies. - Contract and Tariff Complexity:
Business energy contracts are rarely simple. Pass-through charges, non-commodity costs, third-party levies, and variable tariffs all add layers of complexity. It only takes one misapplied rate or forgotten discount for the bill to be wrong. - Metering Issues:
Faulty or outdated meters, incorrect meter details, or inconsistencies between the supplier and network operator’s records can all result in incorrect charges.
Common Types of Billing Errors
- Incorrect unit rates or standing charges applied
- Wrong application of VAT or Climate Change Levy (CCL) exemptions
- Missed discounts or unclaimed relief schemes (e.g. ESOS or CRC schemes)
- Inaccurate consumption data due to estimated readings rather than actual reads
- Duplicate charges or overlapping supply periods
- Misallocation of meter points or supply locations
Such errors can go unnoticed for months or even years , until a detailed audit is undertaken.
The Case for Historical Audits and Bill Validation
Many businesses don’t realise that errors on energy bills can be corrected even for past charges going back up to six years in some cases. This process is known as a forensic energy audit or historical bill validation.
Key benefits include:
- Identifying Past Overcharges:
Thorough audits can uncover billing mistakes from previous years, providing an opportunity to claim refunds or credits from your supplier. - Ensuring Correct Application of Discounts and Levies:
Your business may have missed out on exemptions or discounted schemes for which it was eligible. An audit ensures these are properly applied, both retrospectively and going forward. - Preventing Future Errors:
By validating your billing data against contracts and meter readings, discrepancies can be caught early, avoiding recurring mistakes. - Unlocking Hidden Savings:
In addition to error correction, audits can reveal opportunities to improve energy efficiency, optimise tariffs or switch to more appropriate contract structures, unlocking long-term cost savings.
Real-World Examples of Savings
- A manufacturing firm recovered over £50,000 in historical overcharges after discrepancies in their distribution use of system (DUoS) charges were identified.
- A multi-site retailer received backdated Climate Change Levy exemptions, saving thousands in government levy charges they should never have paid.
- A service sector business discovered duplicate supply point charges had been applied across several sites, leading to a significant supplier refund.
Why Every Business Should Act Now
Failing to audit and validate energy bills leaves your business exposed to:
- Unnecessary financial loss
- Missed refund opportunities
- Compliance risks with schemes such as SECR and ESOS
- Reputational damage if errors come to light externally
With energy costs unlikely to fall significantly in the near term, and with growing regulatory and sustainability demands, there has never been a better time to ensure your business is paying exactly what it should.
How Enexus Can Help
At Enexus, we specialise in forensic energy auditing, bill validation, and cost recovery for businesses across sectors.
Our expert team will:
- Scrutinise your historical energy invoices and contracts;
- Cross-check your data with metering, supply, and network records;
- Identify and quantify overcharges or missed savings;
- Manage claims and supplier negotiations on your behalf;
- Put proactive validation processes in place to prevent future errors.
If your business has not conducted an energy bill audit in the past six years, you could be owed significant refunds or credits. Contact Enexus today for a no-obligation discussion about how much you could recover, and ensure your energy spend is accurate, fair, and optimised for the future.
