Use our electricity bill calculator to calculate your business electricity costs instantly, with no personal information required.
Whether you’re checking an invoice, estimating future costs, or sanity-checking your tariff, this tool lets you calculate your electricity bill quickly and clearly.
By entering your meter readings, unit rate and standing charge, you’ll see an estimated electricity bill based on standard UK commercial billing methods — the same logic suppliers use, without the waiting or paperwork.
Unlike many suppliers, we’ve put everything you need on one page, so you can calculate your electricity bill, understand the charges behind it, and return whenever you need without starting from scratch.
Electricity Bill Calculator
Enter the details below to calculate your electricity bill.
- Electricity used (kWh)
- Unit rate (pence per kWh)
- Number of days
- Daily standing charge (pence per day)
The calculator will calculate:
- Power cost
- Standing charges
- Your total estimated electricity bill
Electricity bill calculator for UK businesses
Check out our Gas Calculator as well
How We Calculate Your Electricity Bill
Your electricity bill is built from a small number of components. Once you understand these, calculating your costs becomes straightforward.
Electricity usage (kWh)
This is the amount of electricity you’ve used during the billing period, measured in kilowatt-hours (kWh).
Most UK business electricity accounts are billed monthly, although smaller sites may be billed quarterly.
The calculator below allows you to calculate usage over a specific number of days or billing periods.
Unit rate (pence per kWh)
The unit rate is the price you pay for each kilowatt-hour of electricity.
Unit rates vary by supplier, region, contract length, credit status and market conditions, which makes comparing electricity prices difficult without a consistent calculation method.
Older pricing structures such as two-tier rates have been phased out, meaning almost all UK businesses are now billed on a single unit rate per kWh.
Standing charges
Standing charges are fixed daily costs charged for maintaining your electricity supply and account.
They apply regardless of how much electricity you use and are usually charged per day.
Standing charges vary by supplier, tariff, region and contract date. Most suppliers apply a daily standing charge, although a small number structure this differently.
VAT
The standard VAT rate on electricity is 20%.
Some charities and qualifying organisations may pay a reduced rate of 5%. VAT is added after usage and standing charges are calculated.
Other charges
Depending on your contract, your bill may also include:
- Climate Change Levy (CCL)
- Contractual discounts
- Payment method incentives (such as direct debit discounts)
These are supplier-specific and may not apply to all businesses.
Your Electricity Meter and Meter Readings
Electricity meters are usually located near the front of a property, under stairs, in basements, or in communal meter rooms for offices, retail units and industrial estates.
Meters may be:
- Digital (LCD display)
- Smart meters
- Older dial or mechanical meters
Your electricity meter number can be found on a previous bill.
How to read an electricity meter
- Read the meter from left to right
- Record the first five numbers
- Ignore any digits shown in red
- Include leading zeros if displayed
If you have a smart meter, readings are normally sent automatically to your supplier. However, taking periodic manual readings is still recommended to avoid estimated bills and billing errors.
How Electricity Usage Is Calculated
Electricity usage is converted into kilowatt-hours (kWh), which are used to calculate your bill.
- 1 kilowatt (kW) = 1,000 watts
- 1 kilowatt-hour (kWh) = 1,000 watts used for one hour
- 1 unit of electricity = 1 kWh
For example:
- 1,000 watts used for 50 hours = 50 kWh
- 5,000 watts used for 1 hour = 5 kWh
Your usage is multiplied by your unit rate, then standing charges and VAT are added.
Reducing Your Electricity Bills
Electricity costs typically rise during winter and periods of higher occupancy. Managing usage efficiently can reduce unnecessary spend without affecting operations.
Practical steps include:
- Turning off unused equipment and lighting
- Using power-saving modes on devices
- Scheduling heating and systems only when required
- Improving insulation and sealing draughts
- Reviewing tariffs at renewal rather than rolling contracts forward
Small operational changes, combined with the right tariff, often have a measurable impact on electricity costs over a year.
Frequently Asked Questions (FAQ)
❓ How do I calculate my electricity bill from a meter reading?
To calculate your electricity bill from a meter reading, record your opening and closing electricity meter readings and calculate the difference to find your usage in kilowatt-hours (kWh). Enter this figure into the electricity bill calculator along with your unit rate and standing charge to estimate your total bill.
❓ Is this electricity bill calculator accurate for UK businesses?
Yes. This electricity bill calculator is designed for UK business electricity customers and follows the standard commercial electricity billing method used by suppliers. The accuracy depends on the meter readings, unit rate and standing charge you enter, but the calculation logic reflects how UK electricity bills are produced.
❓ Does this electricity calculator work for smart meters?
Yes. The electricity calculator works for standard and smart meters. If you have a smart meter, you can use consumption data from your bill or online account and enter it into the calculator to estimate costs or check supplier charges.
❓ What unit rate does this electricity bill calculator use?
The calculator uses the unit rate you enter, measured in pence per kilowatt-hour (kWh), along with your daily standing charge. This allows businesses to calculate bills using their actual contract prices or model different electricity tariffs.
❓ Can I use this calculator to estimate future electricity costs?
Yes. You can estimate future electricity bills by entering projected usage, expected unit rates and standing charges. This is useful for budgeting, forecasting, and comparing renewal or fixed-term electricity contracts.