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How To Compare Business Gas Prices
Simple business gas rate comparison in just 30 seconds.
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What Business Gas Tariffs Are Available?
When you use our online comparison engine, you will find a variety of tariff options ranging from the cheapest fixed and variable tariffs.
Ensuring you’re on the correct business gas tariff can save you a significant amount of money.
Choosing a gas tariff comes down to how and when the business operates. For example, a business operating predominantly late at night and at weekends may benefit from Economy 7 & Economy 10 tariffs.
Here are some of the tariffs you may want to consider:
Fixed Rate Gas Tariff
A fixed-rate tariff is an agreed price you pay per kWh of gas used. These business gas rates are fixed for the agreed duration of your contract.
Many companies prefer a fixed-rate tariff as they offer security and predictable outgoings that are friendly to budgeting activities.
They also protect the business from any price fluctuations in wholesale business gas rates.
Variable Rate Gas Tariff
Variable gas rates offer flexibility in times of higher wholesale gas prices.
The price your business pays for gas will fluctuate. Often known as a variable price plan, you’re able to move to a fixed-rate gas tariff at any time to save money.
No Standing Charge Tariff
Most business electricity tariffs will feature a daily charge. This cost is applied by the supplier to cover billing and maintenance costs.
This is a fixed daily charge applied to your business gas bill. A no-standing charge tariff removes this charge from your contract.
It’s worth bearing in mind that your unit price may be more expensive on a no-standing charge tariff.
Rollover Gas Tariff
Businesses that have not agreed to a new deal with any supplier may be placed on this type of tariff.
As an expensive legally binding contract, it is often a tariff that businesses avoid due to their contract and expensive unit rates.
Latest Business Gas Prices
Business gas prices vary from day to day, and from business to business. One of the most important factors that affect the price your business will pay for commercial gas is your annual consumption.
Generally, larger businesses will be offered a lower commercial gas price per kWh, i.e the unit rate, but a higher standing charge, due their high consumption. Smaller businesses with a low gas consumption will pay a little bit more in their unit rate, but will be charged a lower standing charge.
The below table is a snapshot of what different businesses of different annual consumption can expect to pay per kWh for their business gas, as well as the standing charge and what that looks like as an annual bill.
How Much Are Business Gas Rates per kWh?
| Business Size | Annual Usage | Unit Price per kWh | Daily Standing Charge | Annual Cost |
|---|---|---|---|---|
| Micro Business | 0 to 5,000 kWh | 8.6p | 37.2p | £351.03 |
| Small Business | 5,000 to 15,000 kWh | 7.6p | 48.2p | £931.05 |
| Medium Business | 15,000 to 25,000 kWh | 7.4p | 48.3p | £1660.90 |
| Large Business | 25,000 to 50,000 kWh | 7.4p | 62.9p | £2993.17 |
| Very Large Business | 50,000 to 100,000 kWh | 6.5p | 164.4p | £5,457.85 |
Data correct as of April 2024. Prices are from Love Energy Savings' panel of suppliers and are based on a two-year business gas contract with the mid-point of the annual usage band being used to calculate the annual costs. These prices reflect a live market and are subject to fluctuation.
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Cheapest Business Gas Prices by Supplier
As a competitive market and many factors are considered when a gas supplier offers a business gas quote, it is very difficult to pinpoint one gas supplier as the cheapest.
However, we can offer insight into averages based on a fixed consumption level. The example below is not set in stone and is based on a consumption of 25,000 kWh of gas.
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 7.1p | 46.1p | £1953.29 |
| SmartestEnergy | 6.9p | 144.6p | £2,264.15 |
| Valda Energy | 7.3p | 42.1p | £1,970.12 |
| British Gas | 7.8p | 48p | £2,132.32 |
| ScottishPower | 7.1p | 35.1p | £1,898.07 |
| EDF Energy | 6.7p | 45p | £1,839.25 |
Data correct as of April 2024. Prices are based on a two-year business contract with 25,000 kWh annual usage. These prices reflect a live market and are subject to fluctuation.
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Can You Get Cheaper Commercial Gas Rates?
Paying close attention to the cost of your business gas will help you secure a great deal. There are a few tips you should keep in mind to ensure you never overpay on your gas rates again.
- Jump on a deal when you find one - You can secure business gas prices up to 12 months before your contract end date. This protects your business from any wholesale business gas price fluctuations. If you see a great deal, it could be gone tomorrow as prices change daily.
- Are you on the right tariff? - Ensuring you’re on the correct business gas tariff can save you £100s. If your fixed-rate contract ends, gas suppliers will place you on expensive out-of-contract rates. Also, think about what times of day or night you’re using the most energy.
- Could you reduce your consumption? - Having an informal walk around your premises with energy saving in mind can help you spot simple efficiency improvements that require little to no investment to save money.
Why Switch Business Gas Suppliers?
Regularly comparing and switching is the best way to make sure you’re paying the best rate possible for your commercial gas.
Moving into a new premises
If you are about to move into a new business premises or have just moved in, you may find you are on a deemed tariff. There may be more competitive fixed-rate business gas tariffs for you, so it is worth comparing for new deals.
Not switched in a while
If you’ve been with the same business gas supplier for several years without renewing your contract, they may have moved you to a variable rate tariff. These can be expensive and will mean you are not paying a fixed rate, so your bill will be unpredictable. It may be worth your while to compare and find a fixed rate.
Growing business
Business needs change over time, and business gas suppliers are not ‘one size fits all’. Many choose to be specialists for different business sizes, as far as annual gas consumption goes. That being said, it's worth making sure you are signed to the right supplier for your gas consumption right now.
Poor customer service
Not everything is price-related. Sometimes a switch is needed if you are unhappy with the level of customer support you receive from your current business gas supplier.
What Happens When You Switch Business Gas?
Once you give us a few details, our price comparison engine will look up your meter information and within 30 seconds it will present you with business gas quotes from our panel of commercial gas suppliers.
From there, you choose the tariff that suits you best and leave the rest to us. We will send you some digital documents to sign. These documents will authorise us to act on your behalf as a third-party intermediary (TPI) and we will initiate the switching process with your chosen supplier, and inform your old supplier that you will be leaving them.
Your new supplier will send you details of your switch - such as the switchover date and a copy of your contract.
On the day of the switch, you should take a meter reading and simply ensure any bills with your previous supplier are paid.
What Contributes Towards The Cost Of Business Gas?
There are two main elements in the cost of your business gas
- - Unit rate (in pence per kWh)
- - Daily standing charge (pence per day)
On top of these two rates, other costs that are added to your monthly bill are:
- - VAT – usually 20%, but some businesses are eligible for a 5% rate
- - Climate Change Levy (CCL)
What Affects A Business Gas Quote?
Business gas prices change daily, and not all quotes are the same for every business. The factors that impact the price you are quoted for business gas include:
Wholesale gas prices
Wholesale gas prices change daily, so a fixed-term contract needs to price in expected rises and falls in wholesale gas prices throughout the contract.
Contract length
Business gas contracts can run between 1 year and 3 years, and sometimes up to five years. Again, with the known fluctuation in the wholesale market, the contract length needs to consider movements in wholesale gas prices throughout the contract.
As a result, you may find a disparity between prices in different contract lengths. That being said, there are benefits to longer contracts, such as longer stability, meaning your gas costs will be predictable, allowing you to budget your business more effectively.
Annual gas usage
A business’ annual gas consumption will also impact the price they pay for commercial gas. Larger businesses will pay lower rates as they are buying gas in bulk, and if their usage is high enough, they can be offered bespoke business gas prices. Smaller businesses may pay a higher unit rate to make up for the small amounts of gas they buy, but their standing charges are lower as a result too.
Location / Local gas distribution network operator
As with many things, location matters. Gas needs to be transported across the gas grid to the premises, and depending on how far it needs to be transported, this cost will be factored into your gas bill.
Business Gas Prices for Small Businesses
We understand how busy small businesses can be and how easy it is to put off switching business gas to a more competitive deal.
We’ve listened to our customers and built a fully online switching service that allows our customers to switch suppliers any time of day or night completely online. You will see competitive prices in just 30 seconds and switch within a few clicks.
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Business Gas Prices for Large Businesses
High-consumption business gas users often have specific requirements. Our experts take the time to understand your business and how we can build the ideal tariff with optimal savings.
With everything from gas usage audits to meter installation and management systems; we’ll build the best solution for you.
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Are Business Gas Prices High In 2024?
With rates now at a consistent level, many businesses are locking in these prices to avoid any potential future fluctuations.
The graph above reflects average business gas rates per kWh for an annual usage of 25,000 kWh on a 2-year fixed-rate tariff for April 2024.
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Business Gas Comparison FAQs
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I’m On A Fixed Rate Tariff – Can I Switch Before My Contract Ends?
If you are within 12 months of your Contract End Date, you are allowed to start comparing business gas prices.
If you find a great deal you can lock it in from then. Your new supplier will let you know the start date of your new contract, and if you use a broker like Energy Helpline, they will contact your old supplier to let them know you are switching.
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Who Is My Business Gas Supplier?
There are several ways to find out your gas supplier if you don’t know who it is. Here are a few options:
- - Check your latest bill, if you have one at hand
- - Check your email history for a copy of your contract
- - If you know your MPRN number, then you can call the Meter Number Helpline on 0870 6081524 or use Find My Supplier to find out who supplies your gas
- - If you don’t know your MPRN, put your business name and postcode into our comparison engine. Our smart look-up system will find your gas meter details, and from there it will let you know who your supplier is - while giving you some useful price quotes to consider.
- - Check your latest bill, if you have one at hand
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How Long Does It Take To Switch Business Gas Suppliers?
We'll aim to complete your business gas switch within 5 working days from approval.
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What Is The VAT Charge For Business Gas?
The flat 20% VAT rate applies to business gas bills. However, there are VAT exemptions for non-profits where the VAT rate would be 5% - the same as for domestic users. You should speak to your business gas supplier if you think you may be eligible.
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What Is The Climate Change Levy (CCL)?
The Climate Change Levy is a tax charged on businesses to encourage them to become more environmentally friendly. Businesses that pay CCL are charged 0.775p per kWh for gas and also 0.755p per kWh for electricity (from April 2024). This amount is set by the Government every year.
The CCL tax is imposed for energy used for lighting, heating and power purposes for businesses in the industrial, commercial, agricultural and public service sectors. There are exemptions to this charge. These include:
- - Businesses where energy is supplied by a domestic contract
- - Charitable organisations
- - Businesses that use less than 2000 kWh or 4397 kWh of gas in an average month
- - Businesses that have registered a Climate Change Agreement (CCA)
- - Businesses involved in specific construction, manufacturing or metal production may also be exempt.
- - Businesses where energy is supplied by a domestic contract
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How Are Business Gas Prices Calculated?
Multiple factors are considered when commercial gas suppliers are calculating prices. This includes wholesale prices, cost of network upkeep, contract length, the businesses credit rating, annual consumption and regional location of the business.
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What Is An MPRN Number?
A Meter Point Reference Number (MPRN) identifies the gas meter at a property. This helps ensure you're being billed for the right amount of gas consumed.
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Can I Get A Business Gas Smart Meter?
If you don’t have a business gas smart meter, you may be eligible for one, provided there are no impediments, such as a weak signal in your location, or if you are a tenant, if you do not have your landlord’s permission.
Fortunately, finding out if you’re eligible is easy. Simply request one from your supplier, or if you switched to your supplier using a TPI or broker, contact them to request.
If you’re eligible, you can book a time and day for an engineer to come and install your smart meter.On the day, let them in and you will shortly be able to reap the rewards of a smart meter sending gas readings every half hour.
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Are Business Gas Rates Cheaper Than Domestic Gas Tariffs?
Due to the larger amount of gas being used, business gas rates are usually cheaper than domestic gas rates. That being said, the larger gas usage is why businesses will have much larger gas bills.
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What If I Run My Business From Home?
You may be eligible to sign up to a business gas tariff if you work from home, however, the majority of your gas usage must be used for your business.
Eligibility criteria can vary between suppliers, so it is best to contact your supplier to enquire if there is a tariff for you. If you are not eligible, you can compare and switch to the best domestic gas tariff
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Can I Switch Suppliers If My Business Gas Is Supplied By An Independent Gas Transporter (IGT)?
Independent Gas Transporters are private companies that are responsible for handling gas transport in sections of pipework after the Nation Grid’s gas infrastructure ends. If your MPRN number begins with either 74, 75, 76 or 77, then your gas comes from an IGT.
The good news is your gas supply works the same as if your gas came from the National Grid. The price you pay for gas is the same too, and you can switch energy suppliers just like everyone else.