How to pay your business energy bills to save money and avoid late fees

Do you know how much you pay for energy at your business? Figures from Ofgem, the energy regulator, show that energy bills often make up less than 10% of a business's overall expenses. But it can feel like a lot more when that monthly energy bill comes in.

As much as we'd sooner spend that money on other parts of the business, energy is essential to keep things running. And paying your bills on time is arguably as important as using the energy itself. 

Late payment can negatively impact your credit score and stop you from switching suppliers. It can also lead to your supplier taking out debt collection measures, and comes with the threat of disconnection.

There are several ways to pay your business energy bills. Some are automatic. Some give you more control. Some can even save you money. This guide covers them all, so you can choose what works best.

But before we look at how to pay your bills, let's have a look at how much you can expect to pay to keep your business running.

What are the average business energy rates for 2025?

Business energy bills can vary significantly depending on things like business size, industry, and how energy is used. To give you an idea of how much a business like yours could pay, here are the average bill sizes for businesses of different sizes.

Average business gas bill in 2025

Business size	Average annual usage	Average annual bill
Micro business	10,000 kWh	£907
Small business	22,500 kWh	£2,047
Medium business	47,500 kWh	£3,496
Large business	65,000 kWh or more	£4,795

Average business electricity bill in 2025

Business size	Average annual usage (kWh)	Average annual bill
Micro business	10,000 kWh	£2,703
Small business	20,000 kWh	£5,202
Medium business	40,000 kWh	£10,224
Large business	55,000 kWh or more	£13,570

^{Note: Prices are correct as of June 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 January 3 to June 6, 2025.}

What are the different ways to pay your business energy bills?

If you pay on receipt of your energy bill, either online or by paying in person at a Post Office or PayPoint, it could be time to reconsider how you pay. If you don't currently pay by Direct Debit, you could be paying more than you need to.

Here's a rundown of the different ways you can pay for your business gas and business electricity.

Set up a direct debit

Direct debit is one of the easiest and most reliable ways to pay your business energy bills. Once it’s set up, the money is taken from your account automatically each month. This means you won’t forget a payment or be charged for paying late.

Some suppliers even offer a discount if you choose this option. If you choose to pay by Direct Debit, you’ll usually have two choices: 

• A fixed monthly payment, which is based on your estimated usage
• A variable amount that changes depending on the amount you use 

If possible, try to avoid estimated billing as this can lead to overpayment or underpayment. Both of which can be a real headache to put right.

If you don't fancy taking regular meter readings, it could be worth getting a business smart meter. This will automatically send readings to your supplier for accurate billing.

To set up a Direct Debit for your business energy bills, log into your supplier account or give them a call. You’ll need your business bank details and a preferred payment date.

Pay online through your supplier

Paying online is quick and flexible. Most business energy suppliers have a part of their website where you can log in to your account and pay directly. To pay, you'll need your customer number and a debit or credit card, and payments usually appear on your account within one to two working days.

This is a good option if you like to be in control of when and how much you pay, especially if your monthly bills vary. If you have an online-only tariff, this may also come with discounted rates.

Make a bank transfer

You can also pay your bill by making a direct bank transfer. This is sometimes known as BACS or Faster Payments. To pay in this way, you'll need to log into your business banking account and send the money to your supplier’s account. You should be able to find your supplier's sort code and account number on your bill.

Include your customer reference number as the payment reference, so it’s correctly linked to your account. Bank transfers are handy for one-off payments, or if you’re coming to the end of a contract and don’t want to set up a new Direct Debit.

Pay over the phone

If you prefer speaking to someone or want to confirm your payment immediately, you can pay over the phone.

You’ll find your supplier's payment line number on your bill. When you call, have your customer account number ready, and make the payment using a debit or credit card. Some suppliers also offer automated phone payment services, which are available 24/7. This can be a good option if you want instant confirmation or prefer not to manage your bills online.

Use a payment app or online banking

Your supplier might also accept payments through a mobile app or digital wallet. If your energy provider supports it, you can use services like PayPal, Apple Pay or mobile banking to send your payment.

This is ideal if you’re managing your business on the go or prefer using your phone for business banking. Just double-check that you’ve used the correct payment reference so your account is credited properly.

Pay at the Post Office or PayPoint

If your business handles a lot of cash or prefers face-to-face transactions, you might like paying in person.

Some suppliers accept payments at Post Office branches or PayPoint locations. You’ll need to take your bill or payment card with you, and you can pay by cash or card. This can be a good option if you need a paper receipt or prefer to deal with payments offline.

What happens if you miss a business energy bill payment?

If you miss a business energy bill payment, it’s important to act fast.

Your supplier will usually send you a reminder. Don't ignore it. If you do, you could be hit with late fees that can make any money problems even worse. In some cases, it can even lead to disruption or disconnection of your energy supply. 

Missing a bill payment could also affect your business credit rating. This can make it harder to access finance in the future.

What to do if you can't afford to pay your business energy bills?

If you’re struggling to pay, contact your supplier straight away. Explain your situation honestly and openly, and work with them to arrange a review of your account, a repayment plan, or an extension. They may also be able to point you to support schemes for small businesses.

If you need more support, get in touch with Citizens Advice.

Tips to help you stay on top of your business energy bills

Paying on time is only part of the picture. Keeping energy costs under control can make a real difference to your cash flow. To make sure you don't miss a payment, set calendar reminders for payment dates. If possible, go paperless so your bills arrive directly by email and make sure supplier emails don't drop into your junk folder.

Submit regular meter readings to avoid estimated charges. If you have a smart meter, this will be done automatically.

Check your tariff to make sure you’re not overpaying, and shop around when your contract is due to end. You might be able to switch to a better deal using a comparison tool like ours.

How to change your business energy bill payment method

So long as you're not on a prepayment meter, you should be able to change your payment method at any time.

To find out how to do this, log into your supplier account or call their customer service team. Most providers are flexible and will help you set up a new payment option quickly.

Just remember, if you’re switching suppliers or moving premises, you’ll usually need to clear any outstanding bills first.

Managing business energy bills doesn’t have to be complicated. There are several ways to pay, from automated Direct Debits to flexible online or in-person options. Pick the method that suits you and your business best.

If things ever get tight, don’t wait until it’s too late. Contact your business energy supplier and ask for help.

By staying organised and proactive, you can avoid extra costs and focus on what matters - growing your business.

How to switch business energy suppliers

If your business energy bills are too high because you're on an expensive tariff, it's time to switch suppliers.

For hassle-free business energy comparisons and expert guidance, click the "Compare tariffs today" button on this page or call our energy experts on 0800 140 4667. We'll help you compare quotes and support you with the switch, so you can focus on running your business.