Compare Business Gas Prices
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Why Compare Business Gas Prices?
Over the past 18 months, business gas prices have been trending downward but have stabilised. Currently, gas prices are still higher than before the crisis, and predictions from Cornwall Insights indicate that they are expected to remain relatively flat for at least the next three years.
This situation provides UK businesses with an opportunity to find cheaper business gas deals in an uncertain market. By comparing business gas prices, companies can potentially save money and achieve greater stability during fluctuating periods.
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How To Compare Business Gas Prices
Simple business gas rate comparison in just 30 seconds.
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Business Gas Prices Per kWh 2024
Business gas prices fluctuate daily and can differ significantly between companies. One of the key factors influencing the price your business pays for commercial gas is its annual consumption.
Typically, larger businesses receive a lower unit rate (price per kWh) due to their higher consumption, but they face a higher standing charge. In contrast, smaller companies with lower gas consumption often pay a slightly higher unit rate but enjoy a lower standing charge.
| Business Size | Annual Usage | Unit Price per kWh | Daily Standing Charge | Annual Cost | Compare Tariffs |
|---|---|---|---|---|---|
| Micro Business | 0 to 5,000 kWh | 8.9p | 35.8p | £354.01 | Compare Tariffs |
| Small Business | 5,000 to 15,000 kWh | 7.6p | 46.6p | £929.69 | Compare Tariffs |
| Medium Business | 15,000 to 25,000 kWh | 7.5p | 46.8p | £1,667.62 | Compare Tariffs |
| Large Business | 25,000 to 50,000 kWh | 7.5p | 57.2p | £3,013.60 | Compare Tariffs |
| Very Large Business | 50,000 to 100,000 kWh | 6.6p | 173.9p | £5,579.02 | Compare Tariffs |
Data correct as of December 2024. Prices are from our panel of suppliers 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.
How Business Gas Prices Are Calculated
Calculating your business gas bill involves several costs. First, suppliers determine your monthly bill based on the unit rate specified in your contract multiplied by your actual consumption.
In addition to this, there is a fixed daily standing charge that covers the costs of maintaining your gas supply. Lastly, other charges, such as the Climate Change Levy (0.775 pence per kWh) and VAT (20%), are added to your total bill.
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Small Business Gas Prices
We understand that small businesses have busy schedules, making it easy to delay switching to a more competitive gas supplier.
We have created a switching service based on customer feedback. This service allows you to switch suppliers at any time, day or night, entirely online. You can view great gas prices in just 30 seconds and complete the switch with only a few clicks.
Commercial Gas Prices
High-consumption business gas users often have specific needs. Our experts take the time to understand your business and design the ideal tariff to maximise your savings.
We offer a range of services, including gas usage audits, meter installation, and management systems, to create the best solution for you.
Cheapest Business Gas Prices By Supplier
Prices can vary significantly from one supplier to another, so there's rarely a single cheapest option for gas. The best supplier for your business depends on your specific usage patterns and timing. Below, you'll find insights about our panel of gas suppliers, as their prices will differ based on your location and energy consumption.
Cheapest 1-Year Business Gas Tariff
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 7.4p | 46.1p | £2,028.30 |
| SmartestEnergy | 6.7p | 144.3p | £2,204.39 |
| Valda Energy | 7.8p | 39.1p | £2,083.98 |
| British Gas | 8.1p | 48p | £2,202.75 |
| Scottish Power | 7.7p | 35.1p | £2,056.02 |
Data correct as of December 2024. Business gas supplier prices per kWh are based on a one-year business contract with 25,000 kWh annual usage. These prices reflect a live market and are subject to fluctuation.
Cheapest 2-Year Business Gas Tariff
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 7.2p | 45.9p | £1,965.68 |
| SmartestEnergy | 6.5p | 144.3p | £2,152.08 |
| Valda Energy | 7.5p | 40.1p | £2,032.63 |
| British Gas | 7.8p | 48p | £2,124.62 |
| Scottish Power | 7.4p | 35.1p | £1,979.98 |
Data correct as of December 2024. Business gas supplier prices per kWh 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.
Cheapest 3-Year Business Gas Tariff
| Supplier | Average Price per kWh | Average Standing Charge | Annual Cost |
|---|---|---|---|
| British Gas Lite | 7p | 45.8p | £1,918.08 |
| SmartestEnergy | 6.5p | 144.3p | £2,150.16 |
| Valda Energy | 7.4p | 40.2p | £1,991.75 |
| British Gas | 7.6p | 47.9p | £2,065.48 |
| Scottish Power | 7.2p | 35.1p | £1,918.61 |
Data correct as of December 2024. Business gas supplier prices per kWh are based on a three-year business contract with 25,000 kWh annual usage. These prices reflect a live market and are subject to fluctuation.
What Business Gas Tariffs Are Available?
When you use our online comparison engine, you will discover a variety of tariff options, including the cheapest fixed and variable tariffs.
Ensuring that you are on the correct business gas tariff can lead to significant cost savings.
Choosing the right gas tariff depends on how and when your business operates. For instance, a business that primarily operates late at night and on weekends may benefit from Economy 7 or Economy 10 tariffs.
Here are some of the tariffs you might want to consider:
Fixed Rate Gas Tariff
A fixed-rate tariff offers a set price per kWh of gas used, which remains unchanged for the duration of your contract. Many companies prefer fixed-rate tariffs because they provide security and allow for predictable expenses, making budgeting easier.
Additionally, fixed-rate tariffs protect businesses from fluctuations in wholesale gas prices.
Variable Rate Gas Tariff
Variable gas rates offer businesses the advantage of flexibility, especially when wholesale gas prices rise.
With a variable tariff, the cost of gas can change based on market conditions, meaning your expenses may vary from month to month. However, this flexibility also allows you to monitor the market and take advantage of potential savings. If you find that gas prices become too high, you have the option to switch to a fixed-rate gas tariff at any time. This way, you can lock in a stable rate and protect your business from further price increases, ultimately helping you manage your expenses more effectively.
No Standing Charge Tariff
Most business gas tariffs come with a daily charge that suppliers impose to cover billing and maintenance costs.
Some suppliers offer no-standing charge tariffs. While this option may seem attractive, especially as standing charges have increased, the unit prices for gas can be significantly higher, which may end up costing you more overall.
Rollover Gas Tariff
Businesses that have not reached a new agreement with any supplier may be subject to a rollover tariff.
This tariff is an expensive, legally binding contract that businesses tend to avoid due to the high costs associated with their contracts and unit rates.
Should I Fix My Business Gas?
Regularly comparing and switching is the best way to make sure you’re paying the best rate possible for your commercial gas.
Haven't Switched Suppliers In A While
If you have been with the same gas supplier for several years without renewing your contract, you may have been switched to a variable rate tariff. These tariffs can be costly and result in unpredictable bills. It may be beneficial to compare available options and look for a fixed-rate plan.
Need A Bespoke Business Gas Tariff
Business requirements change over time, and gas suppliers do not follow a "one size fits all" approach. Therefore, it's important to ensure you are with the right supplier that aligns with your current gas consumption needs.
Poor Supplier Service
Price is not the only factor to consider. Sometimes, it may be necessary to switch suppliers if you are dissatisfied with the level of customer support provided by your current gas supplier.
New Business Gas Connection
If you are moving into a new business premises or have just moved in, you may find yourself on a deemed tariff. There are often more competitive fixed-rate gas tariffs available, so it is worth comparing your options.
Business Gas Renewal
Business gas suppliers do not always offer a great deal on your renewal. It is always worth checking the latest deals on the market.
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 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.