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Gas Prices & Rates

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Reduce your Business Gas Bills

Although most companies use gas as a secondary fuel source, there can still be significant savings made by switching to a cheaper business gas contract. At Business Energy, we help you find the best business gas deals which will reduce your overheads quickly and easily.

Only 33% of small and medium-sized enterprises change suppliers annually, to which 2.93 million companies are potentially being overcharged.

We work with businesses of all sizes, offering a range of flexible and competitive solutions tailored for all types of users. When you compare business gas with us, our experts will take care of the entire switching process on your behalf allowing you to focus on running your business.

As your new contract is coming to end, we will even be in touch with you to make sure you never overpay for your business gas again.

What Are The Average Business Gas Bills?

For those businesses that have gas connections, the following statistics show typical kWh prices that form the basis of annual bills.

The average business gas bill is £856 per year.
The average unit price is 4.25p/ kWh with a daily standing charge of 40p per day.
A small business using 15,000 kWh each year has an average bill of £706 each year.
A medium sized business using 35,000 kWh expects an annual invoice of £1,551.
A larger business consuming 75,000 kWh could see a £3,139 charge per year.

Source: BusinessEnergy.com 2020. All figures exclude VAT at 20% and Climate Change Levies. Prices vary by supplier and UK region. The fixed daily standing charge is usually lower than electricity by 20% for SMEs but four or five times higher for larger companies.

Calculate your average bills using our online gas calculator for metric and imperial meters.

How are Business Gas Prices Calculated?

Business gas prices are calculated differently from domestic gas prices. Whilst domestic customers can choose from a range of off-the-shelf tariffs, business energy customers are offered bespoke quotes.

There are several factors which can affect the cost of your business gas including:

  • Your location
  • The size of your business premises
  • Your current spend on business gas
  • Your consumption levels
  • Your meter type

 
The wholesale price of gas has fallen 70% since September 2018 peak with 2020 levels stable at an average 22.92p per Therm.

Source: Ofgem, 2020

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Easiest Way To Switch Business Gas

At Business Energy, we take the hassle out of searching for the best business gas prices.

There’s no need to go from supplier to supplier repeatedly entering your details to find a new tariff. By entering just a few details about your current supplier and your usage, you will have access to the best business gas prices available.

We’ll provide quotes based on your consumption levels, the wholesale market, and overall demand to ensure you can switch to the right deal for your business.

Lowest Gas Prices With Business Energy

If you haven’t switched your business gas supplier for a few years, or if you’ve never switched, you are likely to be overpaying on your energy bills.

Businesses who fail to either switch or renegotiate before the end of their contract will be placed on a rollover contract. The rates for these contracts are frequently much higher than negotiated energy deals.

When you switch with Business Energy, you will have quick access to a range of tariff options from all energy suppliers.

We have built strong relationships with business gas suppliers to provide you with the best possible prices to ensure your business never has to pay costly deemed or out of contact rates again.

What Do I Need To Compare Business Gas Prices?

With Business Energy, you can compare business gas prices online or over the phone with one of our expert advisors.

To help you receive the most accurate quotes possible, it is recommended for you to have some information to hand on your current supplier and usage.

  • Make sure you know the name of your current supplier
  • Decide if you want to bundle your business electricity with your gas
  • Get hold of some recent bills as these will show your consumption levels
  • Your bill will also list your meter numbers for your business premises
  • Make sure you know your contract end date – this should be in your paperwork with your current supplier

An accurate annual usage figure is critical in providing correct prices at the time of your contract renewal. For large commercial gas users you may be asked for additional consumption data to provide accurate rates.

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Your options at the end of your Business Gas Contract

If you are entering the renewal period for your business gas contract, you will usually have three options:

  1. Use an energy comparison expert to find the best available tariffs
  2. Stay with your current supplier with expensive renewal prices
  3. Check out each of the 20+ gas providers yourself and select the tariff most suitable

 

Option two works in the same manner as most other utilities. Your renewal offer is on average 35% to 100% higher than your current contract.

Suppliers will often hope you simply let your contract automatically renew for another one to three years. There are always cheaper alternatives in the marketplace.

Option three takes the most time and you won’t necessarily access all the tariffs that some brokers purchasing power provides.

Switching business gas contracts is a priority for every business because it could save you 55% on your renewal letter offer. Get energy quotes each year to check your prices are competitive.

Frequently Asked Questions

How long does it take to switch business gas supplier?

The process of switching business gas supplier can take longer than most domestic switches. It is recommended to allow 4-6 weeks for the process.

If your current contract is coming to end, you can switch to a new business gas deal which will begin as soon as your current contract ends.

At Business Energy, we will always keep you up to date with the progress of your business gas transfer.

How long will my business gas contract last?

Business gas contracts will usually last for a longer period than domestic energy contracts.

By comparing with Business Energy, you can choose between one, two and three year fixed rate contracts, depending on the needs of your business.

How much VAT will I be charged on my business gas?

The typical VAT rate on business gas is 20%. If you operate a charity or a not-for-profit organisation, you may be eligible for a reduction in VAT.

My business is supplied by an Independent Gas Transporter, can I still switch?

If your business gas is supplied by an Independent Gas Transporter (IGT), you can switch suppliers just like any other business. You will incur no additional charges to your business when switching.

To find out if your gas is supplied through an IGT network, you simply need to check your meter. If the meter starts with the number 74, 75, 76 or 77 your gas will be supplied through an IGT network.

Switching business gas contracts is a priority for every business because it could save you 55% on your renewal letter offer. Get quotes each year to check your prices are competitive.