Energy Prices for Charities

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To keep your charity running efficiently, it is important that energy outgoings are analysed to see where savings can be made, but where do you start?

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Could Your Charity Save on Energy Bills?

An efficient charity is one that keeps expenses to a minimum. This way, more proceeds can be put towards charitable activities. Every penny counts for charities and not-for-profit organisations. If you can make savings, it could make an enormous difference to the good work you’re able to do.

Energy can be one of your charity’s major outgoings. And gas and electricity costs are rising all the time. This puts increasing pressure on small businesses and organisations. For these reasons and more, analysing energy usage and costs is crucial. But where do you start?

If you want to identify energy savings, Utility Bidder can help. Our consultants have experience working with charities of all kinds. We understand the challenges you face and the pressures your budget is under.

Compare energy contracts with us and we’ll find you the best value deals. With our help, you can trim your utility bills and find energy suppliers that fit your specific requirements.

Think you’re paying too much on your gas and electricity bills? We’ll take a close look at your meter readings and identify where savings can be made. And if there’s a more affordable energy contract out there, we’ll even help you switch. We handle the switching process from start to finish. So, you can be confident of a smooth, stress-free switch.

You’ll even get your own dedicated account manager to advise on issues such as VAT relief. We’re unbiased and trusted by our customers, so you can depend on our recommendations.

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Which Expenses Qualify for Relief from VAT?

VAT rules treat charities slightly differently to other organisations. Although they’re required to pay this tax on all standard rate goods and services, they may be eligible for VAT reductions. This means paying a reduced rate of VAT (5%) or the ‘zero rate’ on some goods and services. Crucially, it can include energy for certain business activities.

As a charity, you can expect to pay only 5% VAT on power and fuel if they’re for any of the following:

  • Residential accommodation, such as care homes for the elderly or for children
  • Charitable non-business activities, such as providing free day care services to disabled people
  • Small-scale energy use – for example, a 2,300 litre order of gas oil for delivery or use of up to 1,000 kWh of electricity per month.

If less than three fifths of the power and fuel you use qualifies for VAT relief, you’ll pay the reduced rate on the part that qualifies and the standard VAT rate of 20% on the remainder.

Note that qualifying power and fuel includes electricity, oils, gases and solid fuels such as coal. Vehicle fuel doesn’t qualify.

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We’re dedicated in helping businesses like yours save more on energy. Contact us today and a member of our team will help you find the best deals on your energy prices.

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VAT-free Goods From Outside the EU

As a charity, you also won’t pay this tax on goods imported from outside the EU, on the condition that these products benefit people who are in need. Such goods include:

  • Products to be used or sold at charity events
  • Basic necessities
  • Office materials and other equipment used to help your organisation
  • Products to help with disaster relief in the EU.

You can find more information about VAT relief on the government’s website. Visit

If you have any questions about tax relief for charities, Utility Bidder can help. We can also advise on whether your charity is exempt from the Climate Change Levy (CCL).

Request a call back on our home page and we’ll contact you to discuss your requirements. You can also call 0800 007 401 to chat to one of our advisers.

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Our Charity Partners

Utility Bidder is a proud partner of Teenage Cancer Trust. We’re planning to take part in numerous fundraisers and events over the next year. It’s all to raise money for a fantastic cause. Keep updated with all our latest activities with Teenage Cancer Trust at

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