Business Gas Comparison

What are the different business gas tariffs?

A business gas tariff is an energy contract that determines how your business gas rates are calculated. Commercial gas tariffs vary widely, and business gas suppliers use a range of terms to describe them.

Here’s a brief summary of tariff options when comparing business gas suppliers:

• Fixed-rate business gas tariff – This is the most popular tariff for small businesses. Suppliers offer this tariff for 1-3 years, where both the unit rate per kWh and the daily standing charge are fixed at an agreed price.
• Variable rate business gas tariff – A tariff where the unit cost per kWh changes according to market conditions. Most business gas suppliers use the variable tariff as the default option at the end of a fixed-term contract.
• Extended business gas tariff – A tariff that allows you to extend the duration of a fixed-rate agreement with your current supplier for an additional period at the same fixed rates.
• Pass-Through business gas tariff – A tariff where only the wholesale cost of the gas is fixed at an agreed rate per kWh, while all other network and distribution charges are ‘passed through’ by your supplier.
• Flexible approach business gas tariff – A tariff offering the option to bulk-buy gas in advance at an agreed price, allowing you to secure cheaper rates when market conditions are favourable.

Here’s a link to our complete guide to business energy tariffs for more information on choosing your next tariff type.

Factors to consider when comparing business gas quotes

Using our business gas comparison service, you’ll receive various business gas quotes from our panel of trusted suppliers. Here are the key factors to consider when choosing the best quote for your company:

1. Contract length – The length of the contract you sign with a supplier can significantly impact the price you pay for your gas. Longer contracts typically offer lower prices but lock you into a specific supplier for longer. Consider your business needs and choose a contract length that suits you.
2. Supplier reputation – Reputation is essential when choosing a business gas supplier for your company. With a business gas tariff, you’ll be locked in with a supplier, so look for a reputable, reliable supplier with a proven track record of delivering gas to businesses.
3. Customer service – Good customer service is essential when dealing with any supplier. Look for one that offers excellent customer service and support, as this will help to ensure that any issues or problems are resolved quickly and efficiently.
4. Business gas rates – When comparing gas prices, consider each supplier’s business gas tariffs, including the unit rate and standing charge. Some have a lower unit rate and a higher standing charge, with others having a higher unit rate and a lower standing charge. Check the estimated annual cost quoted to find the cheapest option for your business.
5. Payment terms – Different suppliers offer different payment terms. Some may require upfront payment, while others may offer monthly billing. Choose payment terms that suit your business’s operations and cash flow requirements.
6. Renewable energy options – If your business is committed to reducing its carbon footprint, consider a green supplier. Many suppliers now offer green options, such as biogas, that can help to reduce your business’s environmental impact.

In comparing business gas quotes, there can be a lot to consider. But don’t worry; our business gas experts will be on hand to help answer any questions you have about choosing your new tariff.

What’s included in a business gas tariff

At AquaSwitch, we help SMEs compare business gas quoted by suppliers across the market.

Once we’ve found your business a great deal, our business utility experts will arrange for your business to enter into a fixed-term contract for supplying gas to your commercial property.

Business gas tariffs are legally binding, so it’s essential to understand all the contract terms. Here’s our guide to the different items in a business gas tariff:

Details of your business:

• Business name – The legal name of your company/organisation, e.g. XXXX Limited. This entity will be legally liable for sticking to the contract terms.
• Registration number – The registration code of your business on Companies House (if applicable).
• Business type – What your business does (usually defined by SIC codes)
• Contact name/email/phone number – Contact details of the staff member responsible for the contract so the business gas supplier can get hold of you if any queries arise.

Details of your business gas supplier:

• The name of your supplier – The contract will typically be branded with the logos of the business gas supplier who you are contracting with.
• TPI name – The business energy comparison service you used to arrange your contract (It’s AquaSwitch Limited for us).
• TPI commission cost – This is the estimated amount of commission your business gas supplier will pay to the TPI through the contract.

Details of your gas supply:

• Supply address – The address of the non-domestic property receiving the gas supplies.
• Standing charge – A daily business energy standing charge, priced in pence per day, that you’ll pay over the length of the contract.
• Unit rates – The amount you’ll pay per kWh of gas you use during the contract.
• Contract end date – The date on which your agreements end. Also known as the “price review date”, the date your contract will roll over onto less favourable terms per the supplier’s terms and conditions.
• Contract end notice date – This is the date before the contract end date that is a deadline for providing your supplier with a contract termination notice if you want to avoid being switched onto your supplier’s standard rollover/standard variable tariffs.
• MPRN number – A unique identifier for your supply point on the local gas network. Here’s our complete guide to the MPRN.
• Meter serial number – A unique number to identify your meter. It’s usually written on the actual gas meter.
• Expected annual consumption (EAC) – The initial estimate of your business gas usage, measured in kWh. The actual meter readings during the contract will determine the amount you actually pay.

Payment method details

• Payment method – In a standard contract, you’ll either pay by direct debit or with BACS with agreed payment terms.
• Expected annual spend – The expected charges for gas, including both the standing charge and the unit charges, are based upon the expected annual consumption.
• Billing details – The address and contact details of where you want your business gas bills will be sent.

Compare Business Gas Prices – FAQs

Here, we answer popular questions surrounding business gas, from locating your MPRN number to what reasonable business gas rates look like.

When comparing business gas quotes, will the price vary by the size of my business?

Yes, larger businesses that consume more gas generally get access to cheaper business gas rates. Here’s a guide to the amount of gas different size businesses typically consume:

Businesses that consume over 100,000 kWh will receive bespoke quotes from business gas suppliers reflecting lower wholesale prices that can be obtained in large contracts.

What is an MPRN?

An MPRN is the unique number for your gas meter and contains 11 numbers. This is used to identify the meter at your business premises – similar to an MPAN number for electricity and a SPID number for your business water meter.

Where can I find my MPRN?

You can find your MPRN on your business gas bill. It should sit under the “Details of Charges” section.

If you can’t find one of your business gas bills, search it online with your business postcode on Find My Supplier. This will then tell you your MPRN.

How much should my business gas bill be?

Your business gas bill will be affected by numerous factors, including your usage, location, and whether you have an agreed contracted rate with a business gas supplier, all of which will impact the overall bill.

Here’s a rough idea of how much gas businesses use:

• Microbusinesses: Spend an average of £430 a year.
• Small businesses: Spend an average of £856 a year.
• Medium-sized businesses: Spend an average of £1,424 a year.

Different industries have different uses for gas, so the figures above are only a rough guideline. The data above was based on average business gas consumption data and the latest average business gas prices.

How can I compare business gas prices for my business location?

Our business gas comparison tool collects all the information we need to know about your business location. We’ll collect quotes tailored to your business address, simply add your current postcode and begin the comparison.

How do I get a business gas quote?

Any licenced business gas provider can provide a quote to supply gas to your property. To get a business gas quote, you’ll need to let a business gas supplier know:

• The contract end date of your current tariff (if in a contract)
• The legal name of your business for a credit check
• The address of your property
• The MPRN number associated with your gas supply point
• Your expected annual gas consumption in kWh

Gas quotes can be requested separately, or you can use our business gas comparison tool to collect business gas prices from our panel of trusted business gas suppliers.

How long does it take to compare and switch business gas suppliers?

According to Ofgem, the regulator, switching business gas suppliers should take 21 days on average to process the switch.

Before signing a contract and switching, you must have an agreed contract end date with your current supplier and an agreed switching date (ideally both on the same day).

Most business gas suppliers aim to complete the switching process within four weeks, although the actual time can vary based on the factors mentioned above.

How do I find out who my business gas supplier is?

The easiest way to find your current business gas supplier is to check your latest gas bill. If you don’t have it or you have recently moved into new premises, you can call the Meter Number Helpline on 0870 608 1524, and they’ll be able to assist you.

What is green business gas?

Green business gas is a biofuel alternative to fossil fuel natural gas. Unlike natural gas, green gas is made from biomass sources such as plants and food waste.

Most business gas suppliers do not offer renewable business gas tariffs. Unfortunately, sustainable gas offerings for businesses are only available in specific locations due to the lack of widespread green gas generation capacity.

Use our business gas comparison service above to determine whether your location can switch to one.

How do I find out when my business gas contract ends?

To work out when your business gas contract ends, simply find your latest gas bill. Business gas bills show your current business gas contract end date. If you don’t have a bill, it’s worth looking for your original contract or calling your current business gas supplier.

The customer services department of your business gas supplier will be able to help you and tell you what the end date is for your existing contract.

Can I compare if my business gas is supplied by an independent gas transporter (IGT)?

Yes, you can compare business gas prices if your gas is currently supplied by an independent gas transporter. However, switching can take a little more time than a regular switch.

Independent Gas transporters contracts usually include an additional standing charge compared to a direct connection to the national grid.

Some providers will absorb the costs of the IGTs; however, most do not. It’s worth ensuring you understand the overall cost before switching, as it may be substantially more than using a supplier on a standard tariff.

Will I be charged an early exit fee if I cancel my business gas contract?

Yes, unless you’re moving business premises, your existing supplier will charge you a termination fee. This can be up to the total wholesale spend for the rest of the contract. Once you have paid this fee, you can cancel your business gas contract and move to a different supplier.

To end your existing tariff, you must send a termination letter to your current supplier stating that you wish to terminate your contract on a specific date. The details you need to provide are as follows:

• Address
• Account number
• Contact details
• The date from which you want to cancel your services

You can use the AquSwitch energy termination letter here.

For more information, check out our complete guide to getting out of a business energy contract.

Can I compare business gas quotes before I move into new premises?

You can, but you can’t switch until you have a move-in date and a signed contract for the new premises. You will also need critical details like the MPRN number to get a valid quote.

Business gas prices fluctuate on a daily basis, so there is no point in using a business gas comparison service until you have agreed on a move-in date.

Is there support available for businesses struggling to pay their gas bills?

Recent rises in inflation have left many businesses struggling. If you cannot pay a gas bill, we recommend talking to your current business energy supplier to discuss a payment plan or payment pause to give your company breathing room.

The Citizens Advice Helpline can also help advise you on your business gas contract.

Can I cancel my business gas contract?

You can, but you will most likely have to pay an early exit charge if you cancel your contract with your business gas supplier early. The specific tariff you have agreed with your supplier will determine the applicable exit fee.

If your contract term ends, you can switch freely and avoid early cancellation fees.

If you have only a couple of months left on your contract, it’s worth sticking with it and arranging a new business contract to commence on the end date.

Do business gas contracts offer a cooling-off period?

Most business gas contracts do not offer cooling-off periods when signing a new contract. A 14-day cooling-off period is when you can cancel services within the cooling-off period without any financial ramifications.

It’s important to compare business gas prices in-depth and make sure you fully understand everything you are signing up for. It’s worth contacting the supplier to ensure you understand every aspect of the quote provided before agreeing to it.

Can I get a dual fuel contract?

No, business energy suppliers do not offer dual-fuel contracts to companies that need both a gas and electricity supply to a commercial property.

What are automatic renewals on my business gas contract?

If you are classed as a “Micro-business”, your business gas supplier must send you a renewal reminder at least 60 before the end of your current business gas contract.

Ensure you have got your renewal date saved in your calendar. If your business gas supplier doesn’t send you a renewal letter, you may be automatically renewed onto more expensive business gas rates.

Check out our full guide to what happens at the end of a business energy contract.

How do I know if my business is on a deemed gas contract?

A deemed gas contract is where your commercial property has a gas supply, but you haven’t entered into an agreement with the supplier. In this situation, you’ll revert to a deemed contract where you pay expensive out-of-contract gas prices with the current gas supplier.

The most common indicators that you are in a deemed contract are:

• You’ve just moved into a property but haven’t been in touch with your business gas supplier.
• The unit rate you’re paying for gas has increased significantly.
• Your business energy supplier has gone bust, and you’ve been transferred to the supplier of last resort.

What is micro business gas?

This, simply put, is business gas prices for companies classed as a “micro business”. Businesses classed as micro businesses will pay for their gas on a specific tariff created for micro businesses.

The definition and qualifying factors for being a micro business are the following:

• Have fewer than ten employees (or their full-time equivalent).
• Have an annual turnover or annual balance sheet total not exceeding £1.7million.
• You consume less than 200,000 kWh of gas a year.

If you sit within these factors, most suppliers will be able to offer you a special micro-business gas rate.

What do I need to do at the end of a business gas contract?

Business gas contracts have a clause that says what happens if you reach the end of your contract without arranging a new one.

Typically, you’ll continue to be supplied by your current business gas supplier with either:

• A rollover contract where you’ll be locked in for a further year at a fixed rate, or
• A out of contract tariff with variable rates.

Either way, these automatic business gas contracts are unnecessarily expensive. To avoid wasting money, we recommend using our business gas comparison service to arrange a renewal or a hassle-free switch to a new supplier.

Here’s our full guide on what to do at the end of a business energy contract.

How do business gas tariffs work?

A business gas tariff describes how a company will pay for its gas supply to a property that’s connected to the local gas distribution network.

In a business gas tariff, you’ll typically pay for two things:

• A fixed daily standard to cover the cost of maintaining your property’s connection to the mains network.
• A unit fee for each kWh of gas your business uses, as measured by your gas meter.

In the UK, the gas market is deregulated, so companies need to choose their gas supplier and business gas tariff. Find your next business gas supplier using our business gas comparison service.

I’ve got more than one property, and my business gas comparison has different rates per location – why?

The cost of transporting gas to your property depends on your location. The British mainland has five separate gas distribution networks, each with its transportation charges, making some regions cheaper than others.

Additionally, some properties may be supplied by an independent gas transporter, which adds another layer of fees to your gas quotes.

The business gas quotes you’ll receive from our suppliers factor in the distribution charges they’ll incur to deliver gas to your property.