A guide to utilities for business and saving money

Whether you’re setting up a new business or moving premises, navigating your business utilities can be complicated, but it's a crucial part of managing your overheads and ensuring your company runs efficiently. 

From energy costs for heating and lighting to water consumption, these are the basics you need to keep your business running. And their bills need to be factored in when budgeting expenses. 

In this guide, we’ll break down everything you need to know about your business utility bill and provide actionable strategies to help you save money.

What is a utility bill? 

A utility is an essential service that businesses need to operate, including electricity, gas, and water. Phone and broadband are also utilities. A utility bill is a statement of charges suppliers send to you for using these services at your business premises. It’s a monthly invoice that details the amount your business owes for its utilities. 

The specific services vary depending on your industry and location, but the most common business utilities include:

• Electricity
• Gas
• Water and sewerage
• Broadband and telecommunications
• Waste and recycling

Each utility provider will send you a separate invoice, detailing your usage, the rate you’re being charged, and any additional fees. For example, the amount you’re billed for business energy each month will depend on the amount of energy used, the standing charge, and additional charges like VAT and the Climate Change Levy.

Understanding your business utility bill

When it comes to reading your business utility bill, you may just want to know how much you’ve used, how much you owe, and when to pay it. Alternatively, you may want to see in detail where your money is going and use it to optimise your usage. 

Either way, we’ve broken down the bill you’ll receive so that you have all the information you need to make informed decisions.

Your energy bill will include all of the following details:

• Bill date - The date the bill was sent to you.
• Bill number - Unique reference number for the specific bill.
• VAT number - The registered VAT number for your business.
• Account number - The unique number for your account, essential for contacting your supplier.
• Contract details - Information about your agreement with the supplier.
• Billing period - The timeframe for the charges on your bill.
• Outstanding charges - Any unpaid amounts from previous bills.
• Billing period charges - The sum you’re being charged during the billing period.
• VAT charges - The sum you owe for this tax.
• Total amount due - The total you need to pay.
• Cost breakdown - A detailed explanation of how the total amount is calculated.
• MPAN/MPRN - The number used by your supplier to identify the energy meter installed at your premises.

How much do business utilities cost, and what factors drive them?

The cost of business utility bills is not a one-size-fits-all figure. It’s influenced by a number of factors, including the size of the business, location, and industry type. Seasonal changes, such as increased heating in winter or air conditioning in summer, can also drive up costs.

Average electricity bill for UK businesses in 2025

Average gas bill for UK businesses in 2025

^{Note: Prices are correct as of October 2025. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from October 1 to October 7, 2025.}

The amount you’re billed each month will depend on the amount of energy you use, the standing charge and additional charges like VAT and the Climate Change Levy.

For more information, read our guide on average business energy consumption. 

Your business phone and broadband bill will also be made up of several costs and will probably have four main sections:

• Regular charges - These cover your core services, such as phone line rental, broadband, mobile, cloud services, or the price for your complete package.
• One-off charges - These apply to things like delivery, engineer visits for installation, activation fees, or any equipment you need to get set up. You may find your first bill is more expensive because of these charges.
• Usage charges - These are for anything outside your agreed package – including calls to international destinations, extra data usage, or any overage on your plan.
• Discounts - Discounts may appear on your bill if you've taken advantage of a bundle, a promotional offer, or other savings available at sign-up.

You’ll also have VAT added on there, as well as separate charges for extras like cloud storage or business VoIP services.

How to compare business utilities (and get the best deal) 

Now that you know what a utility bill is and what drives your expenses, you can compare business energy quotes to see if you can cut down on the cost of your energy bills. 

Using a business essentials comparison site like Bionic allows you to streamline the comparison process, presenting options side by side tailored to your unique needs, highlighting key differences in price, contract length, and green energy options. Our experts will guide you through the process, explaining the terms and conditions to help you choose the best deal for your business. 

How to pay your utility bills

There are several different ways of payment, listed on your bill.

• Direct Debit - The most popular and convenient way to pay your bills. The money is taken directly from your account, meaning you’ll never miss a payment. Some suppliers will also offer a discount for paying this way. For more information, check our guide to Direct Debit business energy bills.
• BACS - Some business owners prefer BACS payments, a bank-to-bank transfer between banks in the UK. Usually, a BACS payment takes three working days to go through. This applies both to Direct Debits and Direct Credits.
• Debit or credit card - Many utility companies offer the option to pay via debit or credit card. Much like BACS payments, paying by this method means you must contact your supplier each time you wish to make a payment.
• Cheques or Giro - Another option is to pay by cheque or Giro slip, which can be found at the bottom of your utility bill.

TOP TIP: Taking the time to consider how you pay for your energy can save you energy in the long run. If you’re struggling to pay your energy bills, this guide has information on the next steps you should take.

Practical tips for reducing business utility bills 

Once you have the best deal, here are some actionable steps you can take to further decrease your bills:

Switch appliances off

If you’re trying to save money, ensure all appliances and equipment are switched off when not in use, including computers, printers, and any other electrical appliances. Even in standby mode, these devices consume energy, contributing to unnecessary additional costs.

Install a smart meter

A smart meter provides real-time data on your energy consumption, allowing you to identify usage patterns and potential areas for savings. By monitoring your energy usage, you can make informed decisions about when and how to use energy more efficiently, ultimately reducing your business energy expenses.

Smart meters are also a key part of the Market-wide Half-Hourly Settlement (MHHS) programme, which will bring half-hourly metering to all UK homes and businesses. For more information on what this means for your business, check out our guide to the Market-wide Half-Hourly Settlement (MHHS).

Consider energy-efficient lighting

Replace traditional lighting with energy-efficient alternatives like LED bulbs. LEDs consume significantly less energy and have a longer lifespan, resulting in lower electricity bills and reduced maintenance costs. Upgrading to energy efficient lighting can lead to significant savings over time.

Go paperless

Transitioning to a paperless office reduces energy consumption associated with printing and copying. Encourage digital communication, use electronic document management systems, and promote online collaboration tools to minimise paper usage and lower your business’s carbon footprint.

Switch energy suppliers

To avoid overpaying for energy, you should compare quotes and line up a new contract before your current one ends. At Bionic, our tech-enabled experts can pick the cheapest rates on offer from a range of suppliers and will help you choose the one that's right for your business.

For more detailed information, read our guide to energy-saving tips for small businesses.

Utility bill FAQs

Still not quite sure about your business utility bills? Here are the answers to some of the most frequently asked questions.

Is council tax a business utility bill? 

No, council tax is not considered a business utility bill. It is a local authority tax that businesses are required to pay in the form of business rates.

Is a phone bill a utility bill? 

Yes, a phone bill is considered a utility bill, but this typically applies only to landlines. Telecommunications services, like a landline phone, are often essential for business operations, similar to electricity or gas. Mobile phone bills, while a necessary expense for many businesses, are generally categorised separately from traditional utilities.

Is broadband a utility bill?

Yes - and a critical one! In the digital age, broadband is as important as electricity or water for the vast majority of businesses. It’s an essential utility for everything from processing payments to communicating with clients and managing online operations. 

Can I switch business utilities at any time? 

Generally, no. Most business utility contracts are fixed-term, and you can face significant termination fees for cancelling your contract early. When switching business electricity or gas, your switching window is the earliest point at which you can compare business utilities and arrange a new deal. It’s the responsibility of your supplier to let you know when you can switch business energy suppliers, and this can be months before the end date of your contract.

How are standing charges calculated?

A standing charge is a fixed daily fee that is included in your gas and electricity bill, even if you don’t use any energy on that day. Your energy supplier sets the level of gas and electricity standing charges, which cover the costs of transporting electricity or gas through cables and pipes to homes and businesses, and pay towards supplier business costs.

Compare business utilities with Bionic

Looking for help finding the right business energy deal? At Bionic, we work with a panel of trusted suppliers and providers to get you a competitive deal, no matter the shape or size of your business. Just give us your postcode and our tech-enabled experts will use smart data to find an energy deal that suits the unique needs of your business. 

Get in touch to discuss your needs or get more information by starting a quote online today.