Business gas FAQs

Finding opportunities to save your company money is an important part of managing a successful business. Lowering your gas bill will help put more of your capital into growing your business.

Securing your company an advantageous deal is the most effective way to reduce your energy bills. But before you switch, it’s important to understand business gas rates, tariffs and meters. We’ve put together the answers to a range of business gas questions so you have all the information you need to make an informed decision.

Business Gas Rates and Tariffs

  • How much should you pay for business gas?

    The unit cost and the standing charge make the most difference to your business gas bills. The unit cost is the price you pay for each kWh of gas used. The standing charge is a daily payment to cover national grid maintenance and transportation costs.

    Commercial gas contracts are tailor-made for each company. To determine your unit cost and standing charge, your business’s location, size, number of employees and consumption pattern will all be taken into consideration. This means it’s difficult to estimate how much you should be paying at first sight, but average industry prices can give you a rough idea:

    Business Size Price per kWh Standing charge Avg. annual cost
    Micro business 4.0p 32.0p £516
    Small business 3.8p 30.0p £965
    Medium business 3.5p 28.0p £1,502

    These figures are based on industry averages and are only a guide. Many factors impact the amount you pay for your business electricity, including consumption habits and location.

  • How to get the best business gas rates

    To get the best gas rates for your company, run a business gas comparison. This involves calling a range of commercial gas suppliers and negotiating a bespoke quote from each.

    Then you’ll need to compare the unit cost and standing charge for each to find the most advantageous deal for your company. To avoid running into problems down the line, look for a provider that offers quality customer service as well as a great price.

  • What types of business gas tariff are available?

    There are several different types of business gas tariff:

    • Fixed-term contracts set the amount you pay for each kWh of gas for the duration of your contract, protecting your company from market volatility. They’re considered the best deals for businesses.
    • Variable-rate contracts link your unit rate to the market so it can increase and decrease. They aren’t offered by all suppliers.
    • Deemed rate contracts, also known as ‘out-of-contract rates’ are expensive rates arranged for customers with no formal agreement such as when a business moves into a new premises.
    • Rollover contracts occur if you let your energy deal expire without arranging a new one. These are usually among the supplier’s most expensive.
    • 28-day contracts are high rates imposed to encourage businesses who haven’t switched since the energy market deregulation came into effect to do so.

Switching Business Gas Supplier

  • Why switch business gas supplier?

    The most compelling reason for switching business gas suppliers is that it’ll save your business money. With rising wholesale costs, taxes and environmental levies, business gas bills can mount up. To make matters worse, it’s all too easy to end up paying more than you should simply by not paying attention to the terms of your contract.

  • Why use a business gas broker?

    Comparing and switching business gas deals will save your company money, but it can take time and a little bit of knowledge to achieve. This is where a business gas broker can help.

    Business gas brokers are specialist intermediaries who use their expertise to negotiate favourable rates from a range of suppliers on behalf of your company.

  • What happens when your business energy contract ends?

    Once your business energy contract nears expiry, your present supplier will send you a renewal offer but these are very rarely the most competitive rates on the market. If you fail to arrange a deal at all, you’ll be put onto expensive rollover rates.

    If you decide to change energy suppliers, your new provider will arrange the switch with your old provider. The switch should take about six weeks to complete and on the day it occurs, you’ll need to submit a meter reading to your old supplier so they can issue your final bill.

Business Gas Efficiency

  • Are there any other ways to lower your business gas bills?

    Although you’ll have to wait for your renewal window before switching supplier, you can start cutting your gas bills right away, by making adjustments to how and when you use gas, and getting more energy efficient.

    A gas audit can help you see where energy is being wasted, so it could be worth getting in touch with your supplier to carry out an audit, or you can do it yourself. And to save on gas, it may help to keeping thermostats on modest settings – just knocking them down a degree or two can make a difference.

    These measures will help your company save money, but you could save far more by switching business gas deal. Call UK Power on 0800 326 5517 today to find out more.

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