Business gas prices

When it comes to business gas prices, finding the cheapest tariff isn’t just about getting the lowest unit rate.

Lots of other factors come into play when it comes to the overall price you pay for business gas and the value for money and level of service you get is important too.

Here we show you what the average business gas bill is, how much you can save by switching business gas supplier and we share some advice on getting the best business gas prices.

Average business gas prices

With this chart you can see what price different sizes of business pay for their energy before and after they switch with us:

(We class a small business as one that uses 19,000 kWh or less of energy a year, a medium business as one that uses 19,001-50,000 kWh a year and a large one as one that uses over 50,001 kWh a year.)

Standing charges and unit rates

The two most significant elements that make up the price you pay for your gas are the standing charge and unit rate.

While most business electricity tariffs have a standing charge, not all gas tariffs do.

Whether or not a tariff with a standing charge is right for your business will depend on how much gas your business uses. If you’re a heavy user, a low unit rate is vital, but if you use relatively little gas, you might be better off with a low (or no) standing charge and higher unit rate.

Our energy advisors can find a tariff with the combination of standing charge and unit rate that suits your business. This can lead to some fantastic savings:

Climate Change Levy

Also known as the CCL, this is a government levy which is added onto your bill. You pay at 0.169p per kWh of gas used. (From 1/4/2012 it will go up to 0.177p per kWh.) You do not pay CCL for any renewable energy you use and businesses that use less than an average of 145 kWh of electricity a day are exempt. If you think you should be exempt, or if you’re interested in renewable energy, we can advise you.

IGT charges

Some business premises are served by independent gas transporters (IGTs) instead of Transco.

If you get your gas via an IGT you may find that prices are higher because the gas supplier will have to pay the IGT a fee to use their pipes. If you’re served by an IGT, your choice of gas supplier is limited. Our energy advisors can help you work out which supplier is the best for you.

VAT

VAT is charged at 20% on business gas bills. However some businesses only have to pay 5%, for example if you have a domestic/residential element to your business e.g. a care home or a caravan park, or if you are using an average of 145 kWh of gas a day or less. Our expert business advisors can advise you if you are eligible and point you in the right direction to register for the reduced tax.

Long-term contracts

By signing up for a long-term contract (for example three or even five years) you can fix your gas prices for the whole period of the contract. You’ll pay a premium to start off with, but with the upward trend in business energy prices you’ll almost certainly see savings in the long run.

Out-of-contract rates

You’ll pay out of contract rates if your contract runs out and you don’t have a new contract ready to switch to, or in the period when you move into new premises before you can sort out your contract. This is an expensive position to be in - out-of-contract rates are double in-contract rates, so you should avoid ending up in a situation where you have to pay them at all costs.

Price fluctuations

Both business gas and electricity prices are volatile - they change almost every day. When you get a quote you’re happy with, it’s a good idea to snap it up there are then, because you can’t guarantee that that price will still be available the next day.

The reason why prices fluctuate so much is because - unlike the domestic market - business energy isn’t bought in advance, it’s bought as and when new contracts come in. This means that the wholesale market has a huge impact on business gas prices. Our team are always up-to-date with what’s going on in the wholesale market and can advise you on the best course of action.

How uSwitchforBusiness can help you get the best business gas prices

Our London-based team are on hand to provide advice and compare business gas prices on your behalf.

We compare prices from a range of suppliers, saving you time and helping you get an overview on the market. It’s all about getting the best deal for your business, not ours, so if we can’t get you a better deal we’ll tell you so.

The fastest way to get a quote is to give us a ring on 0800 688 8568.

Alternatively, leave your details and we can contact you at a convenient time.