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

Business energy bills can vary significantly depending on things like business size, industry, and how energy is used. Ofgem figures show that energy bills often make up less than 10% of a business's overall expenses, but it can feel 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 a few different 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.

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

If you pay on receipt of your energy bill, either online or by physically going to the Post Office or a PayPoint, it might be time to consider another way to pay. In fact, 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 comes out of your account automatically each month. This means you won’t forget a payment or get charged for paying late.

Some suppliers even offer a small discount if you choose this option.

You’ll usually have two choices: a fixed monthly payment, which is based on your estimated usage, or a variable amount that changes depending on what you actually 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 that will automatically send readings to your supplier for accurate billing.

To set it up, 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 let you log into your account and pay directly through their website. 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. Just log into your business banking and send the money to your supplier’s account. You’ll find their 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 the payment line number on your bill. 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. It’s a good option for those who want instant confirmation or don’t like managing bills online.

Use a payment app or online banking

More and more suppliers now accept payments through mobile apps and digital wallets. 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 gets 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 simply prefer dealing 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, but ignoring it can lead to late fees or even disruption to your energy supply. It could affect your business credit rating, which might make it harder to access finance in the future.

If you’re struggling to pay, get in touch with your supplier straight away. They may be able to offer a payment plan, an extension, or point you to support schemes for small businesses.

Tips to 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.

Start by setting calendar reminders for payment dates, or go paperless so your bills arrive directly by email.

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 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.

And for hassle-free business energy comparisons and expert guidance, call Bionic on 0800 140 4667. An energy expert will help you compare quotes and support you with the switch, so you can focus on running your business.