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Business Gas Prices & Top 10 Suppliers 2024

Business gas prices are usually lower than domestic gas costs, but there is a wide rate range between suppliers which you’ll see here.

In this guide, we’ll show you:

With over 60 business gas suppliers in the UK, it’s easy to become overwhelmed by the sheer number of different tariffs available. You may even feel that you’d rather just stick to your current business gas suppliers and put up with their prices, but the truth is, you don’t have to and you could save up to 30% by switching!

Here, you’ll be able to easily compare business gas quotes and get the best prices from the experts.

This guide is your essential tool to find and compare the best business gas tariffs from the top business energy suppliers in the UK. You’ll be able to see a side-by-side comparison of their business gas rates, contracts, as well as the services and support they offer to businesses.

Or go here if you are looking for business energy brokers (somebody to fully manage your switch for you).

Average Business Gas Prices

Business gas prices consist of the Unit Rate (p/kWh) and a Standing Charge (p/day).

The Unit Rate is the price of each unit of gas that is used, calculated in pence per kilowatt hour or p/kWh. Typically, the unit rate ranges from 2p/kWh to 7p/kWh between suppliers.

The Standing Charge is the daily cost of keeping your gas supply open. You can also think of the standing charge as a rental fee you pay to the supplier.

In the table below, you will find a comparison of the deemed rates between the best business gas suppliers in the UK.

Think of them as the maximum possible prices you would face with each supplier, and it should also give you an idea of their fixed and variable rates.

SupplierGas Unit Price (per kWh)Standing Charge (per day)Annual cost
British Gas3.24p35p£540
E.ON4.82p99p£807
EDF3.70p25p£562
ScottishPower4.01p24p£563
Npower5.32p24p£597
Total Gas & Power4.19p0.0p£533
Dual Energy3.94p25p£592
Opus3.74p18p£541
Avanti5.02p13p£686

Prices accurate as of April 2020 for a small business using 12,711 kWh.

Business Gas Tariffs

Simple explainers for business gas tariffs

Fixed Rate Tarrif

A fixed rate business gas tariff means that the price per kWh and standing charge you pay are set for a certain period of time.

This type of tariff typically lasts for between 12-24 months. Fixed rate deals are by far the most popular energy plans for businesses today.

If your business is signed up to this energy tariff it is automatically protected against any rise in prices over the length of the contract. It is also a great way to help you with your with budgeting.

In addition, any business on this tariff must be given a minimum 42 of days notice that the rate is coming to an end. This gives you the chance to switch business gas suppliers and could save you money.

Variable Rate Tariff

Under a variable rate gas tariff, the price you pay for your business gas supply can increase or decrease at any time.

In most cases, these changes occur when the wholesale price of gas changes. Under this open-ended contract, your supplier must give you 30 days notice if they intend on putting up their prices.

The biggest advantage of a variable rate tariff is that you can leave whenever you want with no exit fees. However, if your business is small, seasonal or operates on a tight budget this tariff probably isn’t for you.

Cheaper Commercial Gas

Business Gas FAQ

Most frequent questions and answers

How much can I save by switching business gas?

In most cases, you can save around 40% by switching business gas supplier. These savings depend on the size of your business and how much gas its uses on average.

Who are the best business gas suppliers?

Some of the top suppliers include:

  • British Gas
  • SSE
  • E.ON
  • EDF
  • ScottishPower
  • Npower
  • Extra Energy
  • Bristol Energy
  • Bulb
  • Good Energy

Who is my business gas supplier?

The easiest way to find a recent business gas bill. Your supplier’s name should appear at the top of the statement.

If you cannot find a gas bill, you can use the Energy Networks Association postcode service here.

How much is gas per kWh?

The unit rate of gas (kWH) depends on your energy deal and what region you are living in but ranges from 2p – 7p per kWh.

How does switching business gas work?

Once your current business gas contract ends or you are happy with the exit fees you are ready to switch.

You simply send your gas supplier a notice to terminate your plan 30-90 days before it expires, you can shop around for a better rate.

You will need:

  • The name of your business,
  • The business address (including postcode)
  • Current gas supplier
  • Contract end date
  • MPR Number
  • Consumption details and renewal rates

How long does it take to switch gas providers?

The switching process usually takes between 4-6 weeks.

However, this is dependent on when you pay your final gas bill to your old supplier, the cancellation of any old direct debits and when a final meter reading is taken.

Do I need to change my gas meter after the switch?

If you have a smart meter in your business premises, your new supplier might have to replace it if their equipment is not compatible with it.

In other cases, some of the features of a smart meter might stop working. If this happens don’t worry, your meter will still function as a traditional meter.

You will just have to give regular meter readings to your new supplier to make sure you are charged correctly.

What rate of VAT is due on business gas?

The current standard rate of VAT on business gas is 20%. Your business might qualify for a 5% discount in the event it is a non-profit organisation, uses less than 145 kWh of gas per day or uses 60% of gas for domestic purposes, as is the case with residential care homes.

What are the benefits of green business gas?

Benefits include a much better public image and increased business opportunities. Plus peace of mind.

Is business gas cheaper than domestic?

In some cases, business gas may be cheaper depending on the size of your business and how much gas you use.

Despite this, most businesses have to pay a VAT rate of 20% on top of their gas tariff.

This compares to the much lower rate of 5% that domestic customers pay.

What Affects Business Gas Rates?

Most frequent questions and answers

Business Size

In short, larger businesses typically use more energy which allows suppliers to offer lower rates, compared to the rates for smaller businesses that don’t use as much energy.

Suppliers use your previous gas usage data as an indicator of your business size and gas rate. If your usage is above a certain number, you’ll qualify as a large business and receive lower rates.

Therefore, you need to have an accurate idea of how much gas your business uses each month. If you are unsure, check your previous billing statements and meter readings, and you should be able to find out your monthly usage.

Contract Length

Longer fixed-rate contracts, such as those lasting over 1 year, generally have higher initial rates. But, the total price you end up paying may be less than a variable rate.

This is because your business gas rates will remain fixed for a long period of time, and so suppliers need to accommodate for the potential loss by charging a slightly higher rate than their short-term contracts.

On the other hand, short-term fixed-rate contracts that last for only a year or less will almost always see prices going up each year, which means that they may have to constantly switch suppliers every year to get the lowest business gas rates.

Location

Businesses that operate in city areas usually receive lower rates compared to those in rural areas, because they are in areas with better access to distribution networks for gas supply.

The higher rates for businesses in rural areas reflect the increased effort by the supplier to get the gas to the business.

Payment Method

In general, suppliers offer discounts when businesses make payments through certain channels such as monthly direct debit.

This allows you to reduce your costs, while the supplier receives faster payment by directly debiting funds from your account.

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Top 10 Business Gas Suppliers

Most frequent questions and answers

British Gas

British Gas

British Gas are veteran energy suppliers in the UK, operating since 1997 and consistently dominating the domestic energy market for both home and business products. Their industry experience and success has enabled British Gas to create a bespoke gas service that caters exclusively to businesses, from SMEs to multinationals.

British Gas offers fixed-rate contracts that start from 1 year to 3 years, with a 90-day notice period, which is convenient if you find yourself in a situation where you need to give short-term notice before leaving them.

Similarly, British Gas also provides variable rate tariffs that don’t tie down into any long-term agreements, just as long as you give them 30-days notice.

Besides this, British Gas tariffs come with easy online account management and free boiler service of up to 70 kW.

SSE

SSE logo

SSE, formerly known as Southern Electric, is the second largest supplier of gas in the UK and are based in Scotland. Their business gas tariff packages are focused on specific business goals including lowering carbon footprint, improving efficiency, maintaining sustainability, and responsible growth.

If you want to save costs with fixed prices, you’ll love this – SSE allows you to fix your business gas prices for up to 5 years with their fixed-rate contracts.

Additionally, with 100 offices throughout the UK, SSE is more than prepared to support you with customer service agents always on hand to help.

E.oN

e.on logo

Headquartered in Germany, E.ON is a multinational supplier of energy and are also one of the most popular providers for business gas in the UK. E.ON offers fixed-rate contracts that range from 1 year to 3 years, with an additional 7% discount for direct debit payments.

Moreover, E.ON offer a range of tariff options that include plans offering 100% renewable energy, payment discounts, and no exit fees.

That’s not all.

If you require flexibility, E.ON provides pay-as-you-go gas tariffs with variable rates to accommodate your business needs. Plus you can easily manage your account online to access your billing and more.

EDF

EDF logo

EDF is one of the largest energy suppliers in Europe and is also part of the Big Six energy suppliers in the UK. They are known for their bargain business gas tariffs and small business-friendly options.

Like other major suppliers, EDF offers fixed-rate contracts that start from 1 year up to 3 years with an additional 7% discount if you choose to pay with direct debit. They also provide great technical support, with 24/7 live chat, as well as a mobile app and online portal for you to manage your account.

In fact, over 8 out of 10 clients opt to remain with EDF, and so it’s clear that EDF is a solid choice for your business gas needs.

Scottish Power

Scottish Power logo

ScottishPower is a Scotland-based Big Six energy supplier that offers business gas tariffs for UK businesses at competitive prices. Their fixed-rate contracts range between 1 and 3 years, with a 30-day notice period. This incredibly short notice period means that you have the freedom and flexibility to exit your contract in case of sudden changes in your business.

What’s more, ScottishPower’s UK-based Business Energy team are readily available to help with advice on how to save energy and reduce costs. You also have access to their website and mobile app to review your usage, billing, and other features.

nPower

npower logo

Last in the list of Big Six energy suppliers is Npower, a German-owned company with a UK office in Swindon. Npower fixed-rate contracts range from 1 to 3 years with a 60-day notice period. They prioritise user experience through seamless and convenient online account management and e-billing, with a variety of payment options available.

Plus, Npower has a UK-based call centre and also offers business switching consultants to ensure that your transition is as smooth as possible. They aim to establish a strong relationship as your business gas supplier, by delivering reliable service and support.

Extra Energy

Extra Energy for business logo

Originally launched in Germany, Extra Energy has since built a solid reputation as a quality business gas supplier with low-cost tariffs and excellent customer support. They have since expanded their offices to Birmingham, where they set up shop to provide energy to customers in the UK.

Extra Energy offers fixed-rate contracts from 1 year to 3 years, with possible discounts when you pay with monthly direct debit. Additionally, they also have a customer service team dedicated exclusively to businesses, providing fast support.

Plus, Extra Energy has you covered when you are moving premises with services to ensure you always have reliable access to gas for your business to continue to operate.

Bristol Energy

Bristol Energy

Bristol Energy is a small independent energy supplier that has proven to be a popular alternative to the Big Six, for businesses looking for a change. They provide sustainable energy along with transparent contracts and dependable service.

Furthermore, Bristol Energy offers a diverse selection of contracts including low fixed-rate tariffs and pay-as-you-go plans, if you are looking for more flexibility. Customer service is one of Bristol Energy’s most highly rated aspects, with customers praising their quick and consistent support.

Bulb

Bulb

Bulb was founded by veterans of the energy industry who realized the lack of customer satisfaction with major suppliers, from factors such as poor service and unnecessarily expensive tariffs.

In response, Bulb offers straightforward, cheap contracts for businesses looking for a simple, no-nonsense gas supplier. They have an impressive list of positive customer reviews that commend their personable customer support, low prices, and reliable service.

Good Energy

Good energy logo

Good Energy is an up-and-coming provider that specializes in providing renewable energy at low prices, to businesses all over the UK. They recognize the importance of using sustainable energy sources and offer the option for businesses to become more environmentally-friendly.

Apart from being low-cost, Good Energy business gas tariffs are also flexible. You are able to opt for their variable tariff that doesn’t specify contract terms or charge exit fees. This is especially useful for businesses that prefer not to be tied down, and want the option to change suppliers without facing further costs.

Alternatively, Good Energy also offers fixed-rate tariffs for either 1 or 2 years, for businesses that want to set their gas rates and run their business worry-free.

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