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The majority of firms in the UK rely on business gas to support their day-to-day operations. But, technically the gas that your business uses is in no way different to the gas that you use to heat your home. In fact, “business gas” is simply an industry term used to describe gas contracts offered to businesses.
However, the method in which this gas is offered to businesses is different. Contracts will differ from business-to-business, in order to cover the varying needs of each company. For example, a small florist may only need gas for heating and hot water purposes, whereas a restaurant will likely use gas to power kitchen equipment. Naturally, this means the restaurant will use far more gas than a florist, and the terms of the gas contract they are offered by a supplier may differ as a result.
To meet these varying consumption habits, it’s important that business gas suppliers can facilitate a degree of flexibility through the business gas contracts that they offer. To achieve this, a business can only secure gas through a bespoke contract, built up around the unique circumstances and gas consumption habits of the business.
The amount of gas that your business uses will likely determine the type of contract that you’re offered by a supplier. Typically, the gas consumption habits of small to medium sized businesses lend themselves to a fixed term contract - which will protect you against price increases in the gas market for the term of the contract. However, other types of contracts are available depending on your business’s circumstances.
Needless to say, business gas contracts can offer businesses a greater degree of control when deciding on, and organising, their supply – especially when compared with the domestic market. However, bespoke contracts can also make it more difficult to determine whether your business is getting a cheap business gas rates, or not.
When looking for a new business gas quote, obviously price is going to be a leading motivator. However, it’s important that you don’t make a decision based solely on this factor. Each supplier that quotes for business gas rates will offer you a bespoke contract that they feel best suits your business’s needs. This quote will take into account things such as the businesses location, size and consumption levels.
For example, a small business - such as a sandwich shop - will more than likely be offered a higher cost per unit, but over a shorter contract term, which means they can switch to a new deal more frequently. A manufacturer with high levels of consumption, on the other hand, will more likely have a lower cost per unit due to the volume of gas that they consume, but this may be over a longer contract term.
It’s this variation in price that can make it difficult to determine how competitive the business gas prices that you’re paying are. It may be the case that you’re paying more than a similar business down the street, but the likelihood of your business being exactly identical is slim, so there’s a good chance that you will both require differing business gas quotes from your respective suppliers.
|Business Size||Average Abbual Gas Usage (kWh)||Average Annual Bill|
|Micro business||5,000 - 15,000||£516|
|Small business||15,000 - 30,000||£965|
|Medium business||30,000 - 65,000||£1502|
It’s important to remember that each business is unique in their gas needs, so the figures above are intended only as a guide. You may naturally pay more or less than the industry average depending on your day-to-day operations.
Therefore, in order to get the best price on your business’s gas, you first need to properly assess the needs of your business. It’s important to not pick the business gas quote that just offers you the lowest overall price – instead, choose one that properly covers your needs.
Click the link if you would like to know more about business gas price by kWh.
If you find that your business is paying more than it needs to in business gas rates, then the answer might be to run a business comparison. Doing this allows you to assess how your business gas prices measure up against other business gas deals that are on the market.
When approaching suppliers for bespoke business gas quotes, it helps to have the correct information to hand to ensure that the quotes you’re receiving are as accurate as possible. If you provide outdated information, it can result in your paying more than you need to for your business’s gas.
Before you begin approaching suppliers, it’s helpful to have the following pieces of information to hand:
All of the information above can be located on one of your recent bills, and can be located using our business gas bill small print pointer. If your situation means you don’t have access to a previous bill, then you can contact your supplier directly and they can provide you with this information.
One of the best ways to ensure that you’re getting a good deal on the gas that your business uses is by running a business gas comparison. However, due to the variety of factors that can impact a business’s gas quote, it can be difficult to run a simple and clear comparison.
Each eligible supplier you approach will offer you a unique quote based upon your business’s circumstances and gas needs, so to find the best deals, it’s important to get a wide selection of quotes from different business gas suppliers.
However, before you run a business gas comparison, there are a few steps that you need to follow:
Step 1 – Check you’re within your business’s renewal window.
Step 2 – Assess your business gas consumption habits to determine your needs.
Step 3 – Approach eligible suppliers to discuss your business’s gas needs and obtain a quote.
Step 4 – Manually compare the quotes and decide which one best suits your business’s needs.
Step 5 – Inform both suppliers of the switch in writing.
Obviously, it’s good practice to obtain as many quotes as possible to get the most comprehensive comparison for your business. However, in reality this is often not feasible for many busy business owners. This can often lead to businesses simply accepting their current suppliers terms of renewal, which are always more expensive than the cheapest quote on the market, instead of running a comparison and switching suppliers.
Alternatively, you can use the services of a business energy broker. An energy broker will not only do the leg work and attain business gas quotes on your behalf, but they can even advise on which quote best meets the needs and consumption habits of your business and even handle the switch.
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