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Compare Business Gas Prices in 30 Seconds | Latest kWh Prices

Ready to compare business gas prices? We work with a trusted panel of suppliers with some offering exclusive rates for our customers. 

Unlike other comparison services operating in the business market, you access live prices with our business gas comparison in just 30 seconds and switch suppliers online. That means you can grab a great gas deal, wherever and whenever suits you and your busy schedule. 

With wholesale business gas prices seeing stability, it is a great time to get a fixed-rate deal.

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  • Scottish Power logo.
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    Enter your details and see live business gas prices online in as little as 30 seconds. 

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    Browse your business gas quotes online and choose the best tariff for you. 

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    Checkout & switch completely online in your own time. We're always at the other end of the phone if you need help. 

Business Gas Prices Per kWh In December 2023 

This table of business gas prices per kWh reflects the average cost of gas per kWh as paid by companies of various sizes (based on consumption levels). Find a suitable business gas tariff that fits perfectly with your company's size and everyday needs, by comparing the latest 2023 business gas prices.  

Data correct as of December 2023. Annual cost based on a 2-year contract and the maximum kWh usage within each business size banding. These prices reflect a live market and are subject to fluctuation. For the most accurate data, you should use our comparison engine to get a live business gas quote. 

Business Size (Average Usage)

Business Gas Unit Price (p/kWh)

Annual Cost
(2-year contract)

Very Small (5,000 kWh)

11.7p

£752

Small (15,000 kWh)

9.7p

£1,654

Medium (25,000 kWh)

9.3p

£2,622

Large (50,000 kWh)

9.1p

£4,995

Very Large (10,000 kWh)

8.3p

£8,945

Gas prices are 68% cheaper than last year 

business gas rates 2022 vs 2023 chart.

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Cheapest Business Gas Suppliers In December 2023

The cheapest business gas supplier often changes daily. As we can only offer great deals based on your information in our engine, below we have provided a selection of business gas rates from top UK suppliers based on 25,000 kWh of usage annually. This comparison was completed in December 2023. To find the best commercial gas price we can offer you today, we advise that you use our engine to compare. 

Supplier

Price per kWh

Daily Standing Charge

Annual Cost

smartest energy logo.

8.6p

144.6p

£2,668

Scottish Power Logo.

9p

30.6p

£2,350

British Gas Lite

9.4p

45.4p

£2,506

British Gas logo.

10p

75.6p

£2,768

valda energy logo.

9p

39.1p

£2,387

total energies logo.

9.8p

150.1p

£2,994

edf logo.

9.3p

25p

£2,411
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Should I Choose A Fixed Or Variable Business Gas Tariff?

Whilst both fixed-rate and variable tariffs have their unique benefits, many opt for a fixed tariff. This provides businesses with some clarity and predictability on their unit rates. 

Here are the key things you need to know about both types:

Fixed Business Gas Tariffs:

  • Can now be for as long as 5 years, although 1-3 years is more typical
  • Fixes your unit price paid per gas kWh and standing charge for the duration of the contract (but usually excludes changes to CCL)
  • The price you pay per unit may increase with contract length because of the risk of price increases
  • Fixed price often only applies to estimated usage, which means you could pay more if you start using more energy
  • Very difficult to get out of the contract early

Variable Business Gas Tariffs:

  • The price you pay varies based on wholesale gas prices and can go up or down
  • Cheaper than deemed or out-of-contract rates
  • Not usually locked into a long-term contract, so can switch suppliers at any time
  • Offers far less certainty than a fixed-term contract in terms of rates
  • Prices can sometimes be higher than fixed-term contracts

Most small businesses will probably be better off going with a fixed-price contract as it offers peace of mind and is one less thing to worry about.

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Compare Business Gas Prices To Beat Your Renewal 

It may seem much easier to accept the business gas rates that come through with your renewal notice from your existing supplier, but these are often priced much higher than the rates you could secure from a quick gas comparison and switch. 

We have made the process of business gas comparison easy, taking away all the time-consuming aspects of switching business gas suppliers away from you. We offer a full service ensuring everything is switched over with ease. We may even be able to negotiate better commercial gas prices with your current supplier. 

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Does More Consumption Mean Cheaper Commercial Gas Prices?

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

Typically, these types of businesses require a more bespoke energy 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. 

Wholesale Gas Price Trends

The last 8 months have seen a surge in wholesale gas prices driven by multiple factors according to industry-leading consultancy, Cornwall Insights:

  • Lower gas storage levels in Europe
  • Reduced pipeline imports from Russia

Combined, this has led to higher prices to attract more gas to meet demand.

Here are the industrial gas prices per kWh including taxes and levies for a typical small business in the UK.

Month

2022 Price (p/kWh)

2023 Price (p/kWh) / Percentage Difference From Last Year

August

20.46p

9.24p
(-55%)

September

30.88p

9.88p
(-68%)

October

25.93p

9.67p
(-63%)

November

23.02p

10.15p
(-56%)

Are Small Business Gas Prices Higher?

What is considered a small business by many is viewed differently by gas suppliers. Split into two categories, small businesses and micro. Micro business gas prices are seen as similar to the domestic market so prices are often similar to the domestic market.

Typically, larger businesses will use larger amounts of gas so will be able to negotiate a lower price per kWh.

According to Ofgem, a non-domestic consumer is defined as a micro business if they meet one of the following criteria:

  • Employs fewer than 10 employees (or their full-time equivalent) and has an annual turnover or balance sheet no greater than €2 million (£1.7 million as of August 2022), or
  • Uses no more than 100,000 kWh of electricity per year, or
  • Uses no more than 293,000 kWh of gas per year.

The main benefit of being defined as a micro-business rather than a small business is that you can give a termination notice at any time during your contract which means you can always shop for the best deal. Typically, it is much easier to manage your business gas usage if you’re a micro business but you do pay higher gas rates. This is because they usually have similar flexibility to domestic contracts.

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How Is The Cost Of Business Gas Quote Calculated? 

Looking over your business gas bill can raise several questions and one of the most common ones we come across is ‘How is the cost of business gas calculated?’    

Two costs require attention when reviewing your business gas, and these makeup most of the cost of business gas quote. 

  • Unit rate - this is your business gas charge. This is displayed in pence per kWh of gas used. For example, if your agreed fixed unit rate is 8.2p per kWh and you use 15,000 kWh of gas annually; you can calculate your annual business gas cost by multiplying 0.082 by 15,000 (£1,230). You will need to add additional costs to this figure. 

  • Standing charge - a daily fee paid to your business gas supplier for the management costs of delivering the fuel to your premises. Initially, this may seem like a high number, but the costs remain unchanged regardless of how much gas you use. For example, with a standing charge of 30.2p per day, you’ll be paying £116.80 annually.

  • VAT - a flat % standard rate of 20% will be applied to your business gas bill. Discounts are available for charities and non-profits who may be eligible to pay only 5%. 

How Can You Save Money On Your Business Gas Prices?

We have built strong partnerships with a range of trusted business gas suppliers. This has helped us access great rates that we can offer our customers that would not be readily available going direct. Combined with our powerful comparison engine, we have created a simple and seamless switching service.

We understand time is money and we take all the admin away from switching commercial gas suppliers so you can continue to do what you do best. Of course, there are other ways of increasing your energy efficiency and managing the cost of your gas bill. You can read more about how to save on your business gas further on down this page.

Our Top 10 Tips For Getting The Best Business Gas Quote For Your Business

  1. The single best way to get the lowest business gas prices is through comparison. Unlike some other services offering business gas comparison, we allow you to switch entirely online.
  2. Know how much gas you use each year and when, as this makes comparisons more accessible and may make it easier to negotiate a discount.
  3. Have your MPRN (Meter point reference number) ready as this can also help you make a better comparison.
  4. Consider how you pay your bill. For example, suppliers like EON and EDF may offer up to a 7% discount if you pay by monthly direct debit.
  5. Check your company credit rating. Bad credit can mean you’ll pay more for your gas supply.
  6. Look into when you use your gas. For example, if your business is seasonal you may be able to benefit from lower summer prices.
  7. If you have multiple business locations you can negotiate lower unit gas prices by buying in bulk.
  8. Energy suppliers don’t offer dual fuel contracts or discounts like they do for domestic customers. This means you may find it cheaper to buy your business gas and electricity from separate suppliers.
  9. Look into installing better insulation on your property. Most gas is used for heating, which means you could reduce your consumption and bills simply by wasting less.
  10. Look into how efficient your gas boiler is. Older boilers can be real energy hogs, which means upgrading to a brand-new one can pay off more quickly than you’d think.
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Business Gas FAQs

  • What Is Climate Change Levy?

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

  • What Are Deemed Rate Contracts?

    Deemed rates are what businesses taking over new premises will pay until they enter into a gas supply contract.

    The amount is paid to the existing energy supplier of the premises until a contract can be arranged with them or another supplier. The prices are very high but are never meant to be paid for long. Just be aware the deemed unit prices can easily be 200%+ more than in-contract rates, so there’s a big incentive to switch quickly.

    Businesses do not benefit from the price cap. This means that business gas comparison remains competitive and it means you can secure great business gas rates. 

    It’s important to regularly compare business gas to ensure you're saving the most amount of money possible. 

  • Should I Get A Cheaper Unit Rate or No Standing Charge?

    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.

  • What Is An MPRN Number?

    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.

  • How Much VAT Will I Pay On My Business Gas?

    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.

  • What Makes Up Your Business Gas Bill?

    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’ energy 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.

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