Business Gas Comparison 2018: Prices, Tariffs and Suppliers

Gas can be one of a business’ largest overhead costs so always compare prices to make sure you get a good deal.

There are a range of different gas tariffs to choose from – the one that is right for you will depend on your business’ needs.

When choosing a business gas supplier, take a holistic approach and consider lots of factors from how much they charge to what their customer service is like.


Gas is essential to the daily running of any business. Whether you’re a small office that needs to power the boiler to keep your employees warm, or a large manufacturing plant that needs to keep the machinery working, you aren’t going to get much done without a good supply of gas.

This guide will give you expert advice on how to get the best deal on gas for your business - after all, you don’t want to be throwing away money. Compare gas prices, the different tariffs that are available and the top-rated energy suppliers to ensure you choose an option that is right for your business gas needs.

business gas comparison

What's in This Guide to Business Gas?



Business Gas Prices

Lots of different costs make up your business gas bill, and it can be difficult to grasp what they all mean and why you are charged them. When comparing business gas prices, however, there are only 2 costs that you should pay close attention to: the unit cost and the standing charge.

But what are these?

  • The unit cost refers to the price you pay for each unit of gas (measured in kWh) that your business uses

  • The standing charge is a fixed daily amount that you pay to your energy supplier for delivering gas to your business. It is charged regardless of whether you use gas on a given day


By choosing an energy supplier that offers low unit costs and standing charges, you’ll be well on your way to making significant savings on your business’ gas bills.

The table below shows you business gas prices from some of the most popular energy supplies in the UK.

Gas Supplier

Unit Cost (p/kWh)

Standing Charge (p/day)

British Gas
6.41p
96.07p
Bulb
3.15p
27.4p
Corona Energy
5.9p
300p
Ecotricity
5.5p
300p
EDF Energy
5.9p
80p
E.ON
4.9p
99p
Gazprom Energy
4.59p
238p
Hudson Energy
5.47p
123p
Npower
5.32p
123p
Opus Energy
6.99p
150p
Ørsted
6.5p
300p
Scottish Power
6.5p
30p
SSE
5p
80p

*Costs are based on deemed rates and so are likely to be the highest prices you’ll be quoted. Deemed rates are charged to businesses who have no formal contract with an energy supplier.


Some energy suppliers have now started to offer gas tariffs without a standing charge. This means that you are only paying for the gas you use. So if your business doesn’t use gas for long periods of time, you won’t be charged a penny from your energy supplier.

While this can seem like an attractive option, these tariffs tend to have a much higher unit cost. So while you’re saving on daily charges, the more expensive unit costs can mean that you’ll actually end up paying more for your gas, particularly if your business has medium-to-high consumption.

To receive accurate gas prices for your business, fill out our short contact form here.


But How Much Should Your Annual Gas Bill Be?

We’ve put together the table below to to give you an idea of how much you should be paying based on the amount of gas your company uses.

Business Size

Annual Gas Usage (kWh)

Annual Gas Bill

Micro
5,000 to 10,000
£241 to £391
Small
15,000 to 25,000
£541 to £841
Medium
30,000 to 50,000
£991 to £1,591
Large
55,000+
£1,741+

*Calculations based on a unit cost of 3p and a standing charge of 25p.


What Affects Business Gas Prices?

  • Gas consumption. The more gas you use, the more your bill will be. Nevertheless, the unit cost you’ll be charged will generally fall as your business gas usage increases

  • The type of tariff you opt for. Gas prices can vary wildly depending on whether you choose a fixed or flexible tariff. You often get cheaper prices if you sign up to a fixed tariff. See below for more information

  • Gas flow availability. When there is more gas available than meets demand, prices will fall. Yet when demand for gas outstrips its supply, gas prices will start to creep up. Supply tends to outweigh demand in the summer, when businesses are using less gas for heating, for example

  • Business location. Sometimes referred to as the “postcode lottery”, gas prices vary depending on where in the UK your business is located. This is for several reasons, including how much gas a supplier distributes in your area. Prices in the south of England tend to be the cheapest. For example, energy supplier Bulb currently charges businesses in South East England 3.3p per day for gas, while businesses in the North East England are only charged 3.15p


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Business Gas Tariffs

A tariff is the pricing structure an energy supplier charges you for using gas. Each one is different, so it's important to take a look at all of them and choose one that best suits your company’s needs.

For UK businesses, there are 4 main types of gas tariffs available:

  • Fixed tariffs
  • Flexible tariffs
  • Green tariffs
  • Dual fuel tariffs


Fixed Tariffs

A fixed tariff offers you a guaranteed unit cost, usually until a defined end date. This simply means that the cost per kWh of gas that your business uses will stay the same for the duration of your contract, regardless of changes in the market price. Fixed tariffs are usually available over 1 and 5 years.

Benefits:

Often the cheapest type of tariff

Provides you with protection from price hikes in the unit cost of gas for the duration of your contract

You know exactly what you are paying for your gas, so there’ll be no nasty surprises in your bills and you’ll be better able to budget

Drawbacks:

You're locked into a contract and will have to pay exit fees if you decide to leave it early

You’ll miss out on cheaper gas prices if market prices suddenly fall


Flexible Tariffs

Also known as a ‘standard’ or 'variable' tariff, a flexible tariff offers you variable prices for your gas. This means that the unit cost of gas changes depending on fluctuations in the market price. So on Friday your business could be paying just 3.4p per kWh of gas, while on Monday your business could be paying a huge 6.2p per kWh of gas. Unlike fixed tariffs, flexible tariffs often don’t have a contract end date.

Benefits:

The unit cost of gas could fall with the market, meaning your business can secure better rates than with a fixed tariff

Allows flexibility since there is no contract end date, meaning you can leave at any time

You won’t be charged any exit fees when you leave, saving your business money

Drawbacks:

You're at risk of paying high unit prices for your gas if market prices suddenly increase

Flexible tariffs are often a more expensive option than fixed tariffs


Green Tariffs

A green tariff supports renewable energy production and can mean one of two things: that some or all of the gas that you buy from your energy supplier is produced by renewable sources such as biomethane. Or, that your energy supplier will make a contribution towards a renewable energy project with the money you used to purchase gas from them. Green tariffs can be fixed or flexible in nature.

Benefits:

Boost your company image

Take advantage of a more sustainable supply of gas

Fixed green energy tariffs are often cheaper than flexible tariffs

Drawbacks:

The green gas market is still in its infancy, so you might struggle to find a tariff that suits your business needs


Dual Fuel Tariffs

A dual fuel tariff is one which combines your gas and electricity supply into one contract. In other words, you get all your business energy from one supplier instead of getting your gas and electricity from different suppliers. Dual fuel tariffs can be fixed, flexible or green.

Benefits:

Easier for you to manage your energy account if both your gas and electricity are from the same supplier

Some suppliers offer discounts to businesses who choose dual fuel tariffs

Drawbacks:

Most energy suppliers do not offer dual fuel tariffs to businesses, so it might be difficult for you to find one


Which Tariff Is Right for Your Business?

There is no right or wrong answer when it comes to deciding what gas tariff your business should go for – it’s all about determining what is best for your business needs. Some factors that you should consider when making your choice include:

  • How much gas you use and whether this varies wildly from month-to-month
  • How long your business will be in its current premises
  • Whether you want a supply of gas and electricity
  • If you want to power your business using a renewable supply of gas
  • Whether you want to benefit from potential reductions in gas prices in the future


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Business Gas Suppliers

With so many suppliers in the business gas market, it can be difficult knowing which one to choose. We’ve tried to make this decision as easy as possible for you by reviewing over 25 business gas suppliers on factors such as prices, tariff options and reputation to bring you a rundown of the top 5 that we believe offer the most value to business owners. So who comes out on top?

Gas Supplier

Tariff Options

Key Benefit

Our Score

Bulb
Flexible, Green
Prices 20% lower than those offered by the 6 biggest energy suppliers
Corona Energy
Fixed, Flexible, Green
24/7 online account management using myCorona
D-ENERGi
Fixed
Commitment to excellent customer service - all calls are answered within 5 rings
Octopus Energy
Fixed, Flexible, Green
Prices 35% cheaper than those offered by other energy suppliers
UGP
Fixed
Offer smart meters for more accurate billing


Bulb

Supplier Score:

Bulb is one of the newest green energy suppliers to hit the UK market. Founded in 2015, the company’s aim is to provide everything that the big energy suppliers don’t: excellent customer service, simple tariffs and fair prices. And it seems that Bulb is living up to its word, having positive reviews across the web with an impressive Trustpilot score of 9.4.

Bulb offers just one simple flexible tariff for business gas, made up of 10% renewable biomethane energy. This tariff has no end date, meaning you are free to leave at any time and don’t have to pay any exit fees. Bulb’s gas prices are also some of the lowest in the industry, with the company claiming to offer rates that are 20% cheaper than those provided by the 6 biggest energy suppliers (e.g. EDF Energy, E.ON).


Corona Energy

Supplier Score:

Corona Energy is one of the largest business gas suppliers in the UK, delivering 14% of the industrial and commercial gas market to over 1,200 customers. It offers both fixed and flexible tariffs to suit all business needs, as well as a 100% green tariff in which gas is sourced from producers of biomethane gas in the UK.

One of Corona Energy’s biggest selling points is its Performance Pledge. This is a commitment to its customers to deliver a high quality service every day across billing, queries and on-time transfers. The Performance Pledge includes answering calls within 10 seconds and enabling 24/7 online account management. The company’s focus on the customer has enabled Corona Energy to achieve a decent Trustpilot score of 6.7, with reviews praising its helpful customer support team.


D-ENERGi

Supplier Score:

An award-winning energy supplier, D-ENERGi is a “One Stop Energy Solution Provider” for businesses in the UK. Its customer portfolio ranges from small care homes all the way up to large manufacturing sites. D-ENERGi offers a fixed gas tariff with a contract length of between 1 and 5 years, and promise to offer the most competitive prices in the market for both new and existing customers.

As well as supplying gas, D-ENERGi also provides businesses with a range of additional energy services from meter changing to setting up new gas connections. The firm has built up a strong reputation scoring 9.5 on Trustpilot, with customers particularly satisfied with its pricing, reliable service and customer support.


Octopus Energy

Supplier Score:

Founded in 2011, Octopus Energy believes that buying energy should be as simple as buying cornflakes. That’s why it provides its customers with clear and simple pricing and uncomplicated billing. This has earned the company a Which? customer score of 76%, the 4th highest score out of 31 energy companies reviewed.

Octopus Energy offer both fixed and flexible green tariffs for business owners. Although the gas itself is not from a renewable source, it offsets the environmental impact of using natural gas by investing in sustainability projects around the world. Green tariffs do not mean you’ll be paying more for your gas, however. In fact, Octopus Energy’s gas prices are up to 35% lower than those offered by its competitors (e.g. British Gas, Npower).


United Gas and Power (UGP)

Supplier Score:

Headquartered in Leeds, United Gas and Power (UGP) offers tailored 1, 2 and 3-year fixed gas tariffs for small, medium and large businesses. The company also provides smart metering options that give you complete control over your gas usage and billing. UGP’s prices are highly competitive, with its business customers saving up to £700 on their gas supply every year. If your business opts for a dual fuel tariff, you can also benefit from further discounts on your energy.

UGP has received positive reviews from business customers who praise the company for its helpful and knowledgeable support staff. In particular, UGP has a dedicated team of account managers who resolve any issues that you might have. This has earned them a cool Trustpilot score of 9.3.


How to Choose a Business Gas Supplier

Don’t just choose the first business gas supplier you find. Always compare like-for-like quotes from as many suppliers as possible. This will ensure that you get the best deal and are not wasting hundreds (or even thousands) of pounds on a service that is not right for your business. When comparing business gas suppliers, there are a number of questions you should ask yourself to help you make your decision:

  • Do they provide the type of tariff you want? Is it a length that suits your business needs?
  • What price have they quoted you? Could you find a cheaper price elsewhere?
  • Do they provide online account management or paperless billing?
  • What are their reviews like? Is their customer support team easy to get hold of?
  • Do they offer any additional services such as smart meter installation or repairs?


To find out more about the leading business electricity suppliers, visit our business energy suppliers page.


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Get a Business Gas Quote

Comparing gas quotes can take a lot of time - something which you might not have. And we get that. This is where we can help. Our comparison service makes the whole process quick and easy and is completely free of charge!

By filling in this form, we'll put you in touch with our carefully selected partners who will find you the best deals on gas. All you have to do then is choose which one is right for you and we’ll take care of the rest, allowing you to get on with running your business.

Before entering your details, please make sure that you have your most recent gas bill to hand and know your contract end date, as this will allow us to get the most accurate gas quotes for your business.


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