Compare Business Gas Prices

Climate Change Levy (CCL) is a tax charge based on how much gas businesses use. This environmental tax was introduced to encourage businesses to become more efficient.

Business gas prices are made up of two things. The unit price and standing charge. It’s important to understand the difference when you are going through your business gas comparison. 

Unit Price: This is how much you pay for the gas you use. It is charged in terms of pence per kWh. It is a variable charge, so the more you use, the more you pay.

Standing Charge: The standing charge is a fixed cost. Normally it’s charged as a fixed price per day (although sometimes per month or quarter).

The difference with the unit price is that you pay the same amount regardless of how much or little gas you use. And unlike unit prices, standing charges vary widely from supplier to supplier sometimes as low as 30p per day all the way up to £85+ per day.

Generally speaking, most price comparisons should focus on the unit price rather than the standing charge as this will determine the bulk of what you’ll pay. However, if you do see an abnormally low unit rate it’s worth your while to double-check the standing charge.

An MPRN number is unique to your gas meter. This helps locate and differentiate your gas meter from others. MPRN is short for Meter Point Reference Number.

20% VAT is charged on top of your business gas rates. If you operate a charity or a not-for-profit, you could be eligible for a VAT reduction. You can speak to your expert business gas team for advice if you think you are eligible for a VAT reduction.

While the wholesale price of gas makes up the bulk of what your business will pay.

There are a few other costs to be aware of:

- Most businesses will pay the standard VAT rate of 20% for their commercial gas. However, if at least 60% of your business’ gas is used for domestic purposes, you are a charity or non-profit, and/or you use less than 145 kWh of gas per day (4,500 kWh per month) you may be able to pay only 5%.

- CCL: From 1 April 2019 the Climate Change Levy is 0.339 p/kWh for gas.

- Local Distribution Zone (LDZ) charges: Levied by Gas Distribution Network (GDN) operators in order to recover their regulated allowed revenue as determined through the RIIO-GD1 network price control.

The window of time to compare and switch business gas contracts opens in the final 12 months of your current contract. This is known as the renewal window. Any earlier than this and you can incur exit fees.

For this reason, it’s very important to know your contract end date. You’ll find this information in your contract details. If you can’t find this, then contact your energy supplier to enquire when this date is.

When you are in the renewal window, you can shop around for commercial gas prices, and if you find any worth switching to, you can lock these prices in early. When your existing contract ends, your new contract kicks in, and the money-saving begins with it.

If energy prices are in the news for all the wrong reasons, and you expect prices to rise in the next 6 to 12 months, then it’s also time to compare.

Moreover, if you’ve not switched to a new business gas contract in many years, then you could be missing out on significant savings and it’s worth comparing.

Once that’s all done, switching gas suppliers takes 5 working days.

Your contract end date is published in the contract you signed with your business gas supplier - check your documents and you should find it.

Alternatively, get in touch with your supplier to enquire when your contract end date is.

If you are a micro-business, then your energy supplier must send you a renewal letter three months before your contract ends. So if you are a micro business, you can always wait for this letter and use it as a signal to start comparing business gas prices.

If you’re moving out of an existing premises or moving into a new premises, there are steps you must take.

Moving out: Close down your energy account when you’re moving out. This will ensure you are not paying the bill when a new tenant moves in.

Moving into new premises: have a business gas contract arranged with a supplier before you move in. This will safeguard you from being placed on an expensive deemed tariff.

Higher consumption and large businesses will typically pay a lower price per kWh for their gas than lower consumption users. 

These types of businesses require a more bespoke commercial gas tariff with advanced energy management systems. During times of higher business gas prices, the UK Government has announced a support package that offers higher discounts to large businesses that meet the criteria of Energy and Trade Intensive Industries. 

For our gas price comparison, we need your postcode and permission to look up your meter number. 

However, you may find it useful to have an MPRN number to hand with your usage and address.