Understanding Commercial Gas Prices: A Guide to Saving on Business Gas Expenses

As a savvy business owner, you know that every penny counts. That's why it's essential to keep a close eye on your business gas prices. In 2023, prices fell significantly, so you might be wondering how you can take advantage of these changes.

The biggest factor determining your business gas prices is how much gas you're consuming. Whether you're a micro business using around 5,000 kWh, or an industrial giant consuming 500,000 kWh, the quantity of gas flowing through your meter directly impacts your expenses.

But remember, no two businesses are the same, and the best deal for you won't be found in a price book or on a comparison website. It's all about finding a tailored solution that suits your unique needs. So, let's dive into the world of commercial gas prices and discover how you can make savings by switching.

Understanding Commercial Gas Prices

In the world of business, no one-size-fits-all approach works as each business has its unique demands and necessities. This fact remains true when managing your gas costs. Comparisons drawn from generic websites or price books may not necessarily provide the best deal for your business.

The rule of thumb is that average business gas prices are dependent on several variables and can fluctuate drastically. This presents an opportunity for your business, as you could potential savings can be made by switching providers strategically. To make the most out of the current gas market, understanding key aspects is of extreme importance.

The heartbeat of any commercial gas price is the kilowatt-hour, also known as kWh. It's the unit of measurement that dictates the price of gas consumed in your business. Now, it's important to note a crucial factor that these prices can change and aren't regulated. Unlike residential gas prices which are regulated by Ofgem imposing an energy price cap, commercial gas prices are due to market forces.

Speaking of costs, let's dabble a bit in understanding the types and costs pertaining to gas meters. Broadly, there are two types of gas meters in use today - digital and dial. The type of meter installed can impact your bill.

Additionally, some business gas rates come without a standing charge, a fixed cost that you pay irrespective of the amount of gas used. However, care must be taken since these scenarios may be compensated with a relatively higher unit rate.

Even though the lure of zero-standing charge gas tariff seems appealing, it isn't necessarily the cheapest option. It largely depends on your commercial gas consumption. Hence, understanding your consumption and shopping around can prove beneficial.

Lastly, tread carefully when signing your gas contract. Most business gas contracts don't offer cooling-off periods, a 14-day window where cancellation incurs zero financial burdens. However, the absence of these periods doesn’t have to be a showstopper. Armed with knowledge and negotiation, you'll have the upper hand.

So, take enough time to understand what you're looking for in your new supplier. Tailored solutions will not only help you save but also give peace of mind.

Factors Affecting Business Gas Prices

Understanding the influential components of commercial gas rates allows you to anticipate how these variables can impact the cost outlined in your utility bills. Here are three key dynamics that significantly shape business gas prices:

  • Gas Importing: Once, all the gas we consumed was produced domestically but due to diminishing resources, it's become necessary to import from Europe. Fluctuations in European gas import prices thus exert a direct effect on the cost your business covers for its gas consumption.

  • Gas Storage: Storage has proven to be a profound hurdle. In 2017, the closure of one of the most significant gas storage facilities severely restricted the UK's storage capacity to a mere four days' worth of gas. With the lack of storage, business gas prices can be highly volatile.

  • Supply and Demand: Sensitivity to the seasons is an inherent trait of gas prices. During colder periods like winter, demand intensifies and consequently, prices surge. Changes in both supply and demand greatly affect the pricing of business gas.

Alright, so it's clear how external factors can cause your gas prices to fluctuate. Unfortunately, businesses on a variable rate contract can find themselves at the mercy of these highs and lows. One day you're feeling comfortable with your rates, the next you're blown off balance by a steep increase.

There's some relief though! Opting for a fixed-rate business gas contract keeps your cost per unit (kWh) stable, shielding you from sudden price hikes. However, keep in mind that there can be exceptions to this rule. It's wise to stay informed about any potential increments that could happen even under your fixed rate contract.

Striving for the best business gas prices is a meticulous calculation, involving various factors like your annual gas consumption, business size and operation location. Also, consider the length of the contract and the unit prices when crafting your quote. A thorough comparison of gas prices comes highly recommended while hunting for a deal that's tailored to your business needs.

Get on a call with the team or navigate through some customer reviews, but remember not to just take our word for it. Keep your eyes on the market and stay informed. This way, you can stay ahead in the game of commercial gas prices.

Tailored Solutions for Your Business

One factor influencing your business gas bills is the choice of a standing charge tariff or a no-standing charge tariff. A standing charge is a fixed daily fee you pay to your supplier, covering the costs of delivery and maintenance of your gas supply. Choosing a no-standing charge tariff means you'll only pay for the gas your business uses, rolling the daily fee to zero. You'll find this setup fits the bill for seasonal businesses or companies that only operate a few days in the week. However, always remember that unit prices may hike under a no-standing charge tariff.

Let's give a glance at how the size of your business can impact your yearly gas bills.

Business size

Annual usage (kWh)

Cost per year (£)

Micro Business

5000 to 15000


Small Business

15000 to 30000


Medium Business

30000 to 65000


Large Business

More than 65000


Data shows clear variations in annual usage and costs, making it pivotal to consider the size of your business when making decisions on gas contracts.

Exploring the wider energy market allows your business to tap into a wealth of tailored solutions. It isn’t just the big six suppliers to browse through, look at the likes of Bristol Energy and Bulb. Both independent energy providers proving their metal with competitive tariffs, a mix of contract types including fixed rates and pay-as-you-go options. Their unique selling points lie in providing sustainable energy and prioritising excellent customer service, making them a noteworthy consideration when procurement time rolls around.

Whether you're a small start-up or a flourishing large-scale business, securing the contract that suits your needs is an ever-prevailing task. Remain informed, stay vigilant to the changing market and unravel the benefits a suited gas contract can bring.

Making Savings by Switching

When it comes to running a successful business, every penny counts. And, making savings on your gas bill could significantly add up over time. But, how can you achieve this? One strategy is to consider switching suppliers or tariffs when your contract is up for renewal.

Why is this important? It's simple: if you don't take action at the end of your contract, you may end up on a deemed contract. These rates are typically much higher than a standard contract, especially if you're dealing with commercial gas prices. In other words, failing to switch might mean you're paying more than you should for your gas.

It's crucial that you understand your contract's terms and conditions. Familiarise yourself with the penalties for ending your agreement early, as these can sometimes outweigh the potential savings from moving to a new supplier. A typical contract allows you to switch only once it ends or during the agreed renewal period before it runs out. Most suppliers will contact you about 60-120 days before your contract's due to end so you can check your options and start shopping around.

Take note: if you work from home, only consider a commercial tariff if more than 50% of your energy use is business-related. The threshold can vary between suppliers, though, so it's worth discussing this with your provider.

But you have at your disposal a simple process that could result in significant savings.

1.     Enter your details into an online form.

2.     Choose from over 350 commercial gas tariffs.

3.     Sit back, relax and save money.

After finding a tariff that suits, your account manager will execute the switch. In this way, you're always positioned to seize a cost-saving opportunity. You can compare a panel of trusted UK suppliers from across the energy market to find one that matches the needs and budget of your business.

Remember, it's your responsibility to stay informed, observe market changes, and select tailored gas contracts to meet your unique needs. The importance of this can't be overstated: select wisely, and your business's bottom line will thank you.

So, you've got the tools to take control of your commercial gas prices. By understanding your contract terms and staying alert to renewal times, you can sidestep those costly deemed contract rates. Remember, it's not just about switching suppliers or tariffs, but also about choosing a contract that's tailored to your business needs.

With over 350 commercial gas tariffs to compare online, you're well-equipped to make an informed, savvy decision. Keep abreast of market changes and use them to your advantage. The bottom line? You can positively impact your business's financial health by managing your gas costs effectively. It's in your hands now. Make your move.


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