Reduce your Business Gas Prices
Saving money is important to any business and switching business gas is one of the easiest ways to free up monthly cash quickly.
Only 33% of SME businesses switch supplier every year. That leaves 2.93 million companies likely being overcharged.
We work with businesses of all sizes to help them save money. Some sectors we help regularly include hospitality, and catering. Comparing business gas is an easy process that takes just 60 seconds. Our experts will take care of the rest. Our team will even be back in touch when your renewal window opens to make sure you never overpay for business gas again.
What Are The Average Business Gas Prices?
Business gas prices fluctuate regularly. We advise comparing commercial gas prices at least every 6 months. We know this isn’t always possible, but if you haven’t done this in a while you could save hundreds of pounds each year.
Here are the 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 2021. 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. They will be 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. They can be affected by several different things including:
- Business location
- Size of business premises
- Current spend on business gas
- Overall consumption levels
- Type of business gas meter
The wholesale price of gas has fallen 70% since September 2018. 2021 prices are stable at an average 22.92p per Therm.
Source: Ofgem, 2021
How Do I Switch Business Gas?
Our comparison takes the hassle out of searching for the best business gas prices. You can compare exclusive deals in just 60 seconds.
The process is switching business gas supplier is easy. We just need a few details about your business, and we can search a range of suppliers for a suitable tariff at a great price. Our experts can negotiate on your behalf, and even build a custom deal if your business uses larger amounts of gas.
We have built commercial relationships with trusted UK suppliers to ensure you are getting the best deal. We have helped thousands of businesses save money on their gas.
What Happens When I Switch Business Gas?
You're likely to be overpaying for your business gas if you have not switched in a while.
Once we have all the relevant business information, we will provide you with an account manager. They will keep you updated throughout the switch. We will update you via our online tracking system. If you have any problems, we are only a phone call away.
Your account manager will take care of all the time-consuming admin. Your new business gas supplier will be in touch with details about your new tariff and payments.
The only thing you will have to do is to provide your old supplier with a meter reading so they can send an accurate final bill.
What Information Do I Need To Compare Business Gas Prices?
You can compare business gas prices online or over the phone with one of our expert advisors.
The most important piece of information we need is your annual usage figure. You will be able to find this on a recent business gas bill. This helps us provide accurate prices. For large commercial gas users you may be asked for additional consumption data to provide accurate rates.
To get an accurate quote, you will need a few things.
- Your current supplier.
- Decide if you want to switch your business electricity at the same time.
- Have a recent business gas bill to hand for annual consumption.
- Your meter numbers (also found on a recent bill).
- Know your contract end date – this should be in your paperwork from your current supplier.
When can I Switch Business Gas Without Penalty?
You can switch business gas supplier if you are approaching the end of your contract. Often you can lock-in a new contract up to 12 months before the contract end date. This renewal window varies by supplier.
If you are entering the renewal period for your business gas contract, you will have three options:
- Use an energy comparison expert to find the best available tariffs
- Stay with your current supplier with expensive renewal prices
- 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. You won’t access all the tariffs that some brokers purchasing power provides.
Switching business gas should be a priority for every business. 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.