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Every business wants to save money and increase the bottom line. Comparing prices for business gas tariffs is the best way to make sure you’re getting the best deal.
Unlike domestic plans, commercial gas tariffs are slightly more complicated. British Business Energy specialises in finding great business gas deals for your business, including bespoke packages.
Everything from usage to location can have an impact on your energy bills. Our business gas comparison tool takes this into account to ensure an accurate quote.
You can see sample business gas tariffs below from the UK’s largest energy companies. These prices are based on deemed rates and thus are the highest price you’d ever likely pay (although sometimes companies will charge even more for out-of-contract plans).
Business Gas Prices*
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* Notes about tariff comparison (Updated 05/07/2021): Prices were believed accurate at the time of publication (05 July 2021) and are based on an annual usage of 25,000 kWh for a one-year fixed contract. The first 5 companies are some of the big six energy companies. Data sources can be found at the bottom of this page. Getting a business energy quote for a fixed term contract should result in much lower rates.
While we attempted to provide the most accurate information possible, we take no responsibility for any inaccurate pricing displayed here. Contracts and prices are the sole prerogatives of the energy companies themselves and we have no control over them.
It’s important to remember that your prices will vary based on a number of factors. One of the most important factors is the size and location of your business premises; including the amount of gas supply you consume. Larger businesses with higher gas usage can often access a cheaper unit rate than smaller businesses.
How much should a business pay for gas?
This can make it difficult for businesses to understand whether a unit rate offered is suitable for them. Here, we’ve broken down the average business gas tariff by business size.
Average business gas prices (pence per kWh)
| BUSINESS SIZE | PRICE PER KWH |
|---|---|
| Very Small/Micro Business | 5.86p |
| Small | 2.76p |
| Medium | 2.83p |
| Large | 2.18p |
| Very Large | 2.75p |
| Average | 2.91p |
These prices are for Q3 of 2021 according to the UK Government. Updated January 2022.
The average prices provided will by no means be the cheapest available to your business. To find the latest deals from a range of trusted suppliers, compare energy prices today with British Business Energy.
How to get a Cheaper Business Gas Tariff?
Most companies decide to sign a fixed business gas contract. This means that the price is guaranteed throughout the term of the contract. In most cases, this will save the largest amount of money for their business.
However, each business is unique. It is now harder than ever to identify the best business gas prices with rising costs, but companies can still ensure they’re getting a great deal by finding business gas cheaper than what other suppliers on the market are offering. You may be hard-pressed to find business gas rates cheaper than you were previously paying, but it is now about managing the cost of your business gas bills rather than finding a cheaper energy supplier.
Fixed-term contracts do not offer flexibility. If you suspect that gas prices may go down soon, you may want to hedge your bets on a variable contract until you can lock in a cheaper deal.
You should always check the small print with longer-term contracts as the cost of getting out of them can be very high if you wish to cancel early.
In normal market conditions, fixed-term contracts can often be as much as 60% cheaper than alternative plans. Comparing business gas prices regularly is important to ensure you’re getting a better business gas deal.
Alternately, you may also want to consider switching to suppliers to an independent company. They can sometimes offer much more competitive business gas rates in comparison to the big six. For example, customers in the Yorkshire & Northeast England can pay as little as 3.08p/kWh with a business gas contract with Bulb.
What Business Gas Tariffs Are Available In 2022?
There are several types of business gas tariffs available, but most businesses will either select a variable rate or fixed rate tariff.
Fixed-Rate Tariff
This is the most common tariff offered by business gas suppliers. It allows businesses to lock in cheap business gas prices. It does not offer much flexibility and you are usually tied into a contract for 1-4 years. This means you cannot switch business gas to a better deal halfway through the contract.
Variable-Rate Tariff
The price of the gas supplied to your business premises can move up and down in line with the energy market. Selecting a variable rate tariff offers flexibility and could save money. However, this is not a guarantee.
On top of these two popular tariffs, you can switch to a Green Energy Tariff. Switching has become difficult in 2022 with the ongoing energy crisis and surging wholesale energy prices. To see the latest business gas prices, you should compare reguarly to see if fixing is the right option for you.
What Else Affects Business Energy & Gas Prices?
While getting a fixed-term contract is the single best way to ensure you save money on your commercial gas contract. The wholesale gas prices is the single biggest component.
However, it is important to note that when wholesale gas prices change, it often takes a few months for energy suppliers to adjust the pricing. This offers a small window to compare business gas rates and lock in a cheaper price.
The following will also have an impact on your rates.
Maintenance & Care Plans
Some suppliers will offer to include maintenance and care of your commercial gas system as part of their contract. Just be sure and check to see how much this will cost you and if it represents the best value for money. The priority should be to find a supplier with the best business gas tariffs.
Gas Usage
In general, the more gas you use the more your business gas supplier will charge. However, the cost per kWh (unit costs) of gas generally falls as usage increases.
This is why it is important to keep track of your business gas usage throughout the year. This information will also be helpful when it is time to compare business energy prices during the renewal window.
Also, be aware if you use less than 293,000 kWh of gas per year, you may be considered a micro-business by Ofgem. This provides you with much more flexibility to compare business energy suppliers and switch freely.
Rollover Contracts
At the end of your fixed term contract, you might end up getting rolled over into a more expensive deemed rate contract. Keeping track of when your renewal window opens will help you when searching for business gas quotes.
Bundled Business Gas Plans
Some UK energy companies will offer you lower business gas costs if you also have a commercial electricity contract with them. It’s also a good idea to switch your business energy all at once as it could save you time by avoiding the process twice for each fuel.
So, if you’re in the market for both gas and electricity it can make sense to bundle them together and buy from one supplier.
However, it may work out cheaper to choose two different suppliers. Selecting a gas tariff from a different supplier may offer a better gas deal. You also consider any standing charge bundled into your gas supply.
5 Things To Write Down Before Getting a Business Gas Quote
- Write down your MPRN (Meter Point Reference Number)
- Write down your annual business gas usage (make note of your daily standing charge).
- Write down when you’re most likely to be using gas
- Write down your business electricity usage if you’re interested in a bundled plan
- Write down the date your current contract expires (if you have one)
Now you’re ready to start comparing business gas suppliers. Having these things handy will make it much easier to find the best deals.
Sources for prices listed above:
How to Get a Great Deal on Your Business Gas
For many businesses, trawling the energy market searching for the best business gas deal is a hassle you could do without. At British Business Energy, we aim to make the process of comparing a wide range of business energy suppliers simple.
When you compare with us, you can switch your business gas contract in 3 simple steps:
Step 1 – Enter Your Details
All we need to provide you with the latest business gas quotes is a few simple details about your current energy deal and usage.
Step 2 – Select Your Tariff
You’ll be provided with a range of tariff options from our wide panel of trusted gas suppliers. Simply select the tariff that’s right for you.
Step 3 – Complete Your Switch
Once you’ve selected your chosen tariff, we’ll take care of the rest. Our energy experts will manage your switch including handling any supplier negotiations.
Getting A Green Business Gas Deal?
Many businesses prioritise reducing the impact on the climate alongside finding the best business gas deal.
It’s never been more important for businesses to reduce their carbon footprint. Switching to a green business gas tariff is a huge step forward. Green gas is produced through a natural process called anaerobic digestion. This essentially means that organic material is converted to biomethane.
Green gas is made from several biodegradable materials and the process for each differs. Once anaerobic digestion is complete, CO2 is removed and subject to meeting gas quality requirements. Once these standards have been met, it enters the national grid. When you compare business gas with us, we’ll include business energy suppliers offering green energy deals too.
In the UK, green energy tariffs are offered by nearly every business gas supplier. When comparing business gas with British Business Energy, we will include green energy tariffs in our results.
Whilst doing your part for the planet, the benefits of supporting green business gas include increased corporate social responsibility messaging and can often present better business gas deals.
Ready to switch business gas supplier? If you switch business gas with British Business Energy, your account manager will take care of the switching process for you and help you find a deal to save money. Start your business gas quote here.
FAQs
When Is The Best Time To Switch Business Gas Rates?
You should make note of your renewal window. This is usually up to 12 months before the end of your contract. This means you can lock in the best business gas prices earlier, but you should not switch before your contract date.
If your business is moving locations, you may be able to change business gas providers without any early exit penalties as contrasts are typically attached to the premises.
How Long Does It Take To Switch Business Gas Suppliers?
Once you’ve selected the tariff you’d like to switch to, it will usually take around 4-6 weeks to complete your switch. By switching with British Business Energy, the entire switch will be managed on your behalf. Our experts will keep you up to date with the progress of your switch and answer any questions you may have.
Do I Have To Pay A Standing Charge?
This depends on the type of business gas tariff you select. You can choose a business energy tariff without a standing charge.
However, this is not always the cheapest option due to higher unit prices. Energy suppliers set it up this way to offset any losses from not charging a standing charge.
How Much VAT Will I Pay On My Business Gas?
VAT is charged at a standard rate of 20% on gas and electricity. If you operate a charity or not-for-profit organisation, you could be eligible for a VAT reduction of 5%.
In many cases, your gas supplier will not automatically add this reduction so it’s important you contact your supplier to make sure you are receiving the full deduction you’re entitled to.
What If I Have Multiple Buildings?
If your business operates across multiple locations, some suppliers may offer you a discount on your energy use. You may be eligible for a multi-site meter.