Just like electricity rates, the key to finding cheap rates for business gas is by comparing quotes. It is quite simple!
Your location, the intensity of consumption and the size of your business will all influence the overall cost of your business energy bills; which makes commercial energy plans different and a bit more complex than domestic plans.
Below you will find gas tariffs that are based on deemed rates offered by renowned energy suppliers in the UK. There will be instances (such as out-of-contract plans) where providers will charge much more than the tariffs below.
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These prices are based on non-daily meters (with daily standing charges included). These prices are published on January 2, 2020
Is it possible to find an affordable business gas plan?
Despite being the most common energy contract in the UK, a standard variable rate tariff can be quite expensive as opposed to other types of contracts. This is because variable rate tariffs flow with the market, thus leading to the fluctuation of prices. Energy suppliers will be able to conduct changes in your bill (especially when prices go up), while of course, informing you beforehand. The benefit, however, is that suppliers will also inform you immediately about price drops. Variable rate contracts also give you the liberty to switch to a different provider with 0 fees.
Fixed rate contracts tend to be 60% more affordable than other available contracts in the market. This is because you will only have to pay a fixed or set price per kWh during the entirety of the contract, avoiding price fluctuations. This will benefit your business financially because increases in market prices won’t alter your current tariff rates as long as you are still on the same tariff. On top of that, you will be able to monitor your energy use and budget out your costs more seamlessly. The only downside to fixed rate contracts, however, is if you wish to leave or switch to a new supplier before your contract ends, you will be charged an exit fee of £60 more or less.
Oftentimes, independent and smaller energy firms offer much cheaper rates than renowned suppliers in the UK. In conclusion, switching to a different gas supplier might do the trick!
What other things should I know that might affect business gas rates?
Source: Janko Ferlič
There are many things that can cause business gas rates to differ in price. Although getting a fixed term contract does wonders in cutting down these costs, a lot of things can make or break your rates like the ones listed below:
Wholesale Price of Gas
The wholesale price of gas plays a huge role in your business gas rates. It can either hike up the rates or not at all, depending on the type of contract you have. These wholesale energy prices are typically set up by the market and a lot of things can affect these pricings such as:
- Weather – The demand for gas increases when temperature drops because this is when consumers use their heaters the most. This causes the prices to hike up a little further. When the temperature is up, however, electricity prices hike up as well because the need for air conditioning units arises.
- Infrastructure – Damages lead to more investments and repair costs. If the UK’s energy infrastructure gets damaged by uncertain events such as unpredictable weather or things of similar nature, this will hinder the supply of energy, hence prices will rise.
You will not be able to see immediate changes in your business energy bill when wholesale gas prices rise or decline, unless you are on a variable rate contract.
Maintenance & Care Plans
Depending on your supplier, maintenance plans for your gas system might or might not be included in their contract. While this can be beneficial for you, it’s still important to note how much these maintenance and care services cost to see if it will hurt your company budget or not.
If you are an energy-intensive company, you might end up paying more. In order for you to get a precise quote for steal deals, figure out how much gas your business will be using and determine from there.
For businesses on fixed term contracts, always remember when your contract ends. It’s extremely important to renew, cancel, or renegotiate your contract right on time to avoid being rolled over into a much more costly deemed rate contract. This is a trap that any business can easily fall into and it can be very expensive.
Purchasing energy (both electricity and gas) plans from one supplier can strike you a lower deal or discount. Some energy providers offer this kind of bundle plan. Combined services can save you at least 30% on expenses. Plus, it will be much easier for you to monitor both electricity and gas usage under the same provider.
Tips on how to regulate and manage your business gas usage:
1. Adjust your thermostat
It’s true that things can get pretty chilly come November to February to the point where it’s sometimes hard to function. This causes companies (and even residential users) to blast their thermostats all the way up for warmth. Of course, we’re not telling you to ditch the thermostat and bundle up to cope—instead, try reducing the temperature by just a few degrees (1°C or 2°C can suffice). Surprisingly enough, this will lower your heating bill by at least 10%! That’s already a big difference for such a small alteration in temperature. You can also consider investing on a proper insulation to improve heat retention
2. Switch to a different energy provider
We’ve said this a bunch of times, and we’ll say it again—switching to a different, cheaper tariff might do the trick at cutting down costs!
3. Regular maintenance and inspection
Proper maintenance and care and getting rid of dust build-up in your heater’s filters will help make your heating system run smoothly and much more efficiently. Remember, regular maintenance costs less than repairs for malfunctioning and inefficient systems.
5 important things to take note of for a hassle-free and accurate Commercial Gas Comparison
1. MPRN (Meter Point Reference Number)
An MPRN is an 11-digit number that is assigned to your meter. You can typically find your unique MPRN on top of your bill, depending on your current energy provider. Just look for the key label “Meter Point Reference”.
2. Annual Gas Consumption
If you know how much gas your business consumes yearly, the better! Your latest energy bill might display your monthly/yearly usage.
3. When do you think you use gas the most
This will give us and your potential energy suppliers an idea of how much gas you actually need and what plans might work best for you.
4. End-date of your current contract
If you are currently on a tariff with a supplier, take note of when your contract with them expires so we know when your switching window begins.
Compare business gas quotes now by filling out the form above!