The expert team at Fidelity have applied their knowledge in business gas comparison to help business managers make better decisions about their business energy costs. Fill out our form by clicking the link below, and one of the experts will get back to you.
There are several important factors as to why you should consider switching your business gas supplier, including cutting your monthly gas bills and finding a supplier that meets your business needs. Whether you are a micro business or running multiple properties, ensuring you have the best deal on business gas is crucial in saving money by having a contract tailored to you. Keep reading to learn more about the best business gas suppliers and important qualities to know about business gas, and if you want to know more about business electricity comparison then, head over to our dedicated page here.
Should I Switch Business Gas Suppliers?
Deciding whether to switch to another business gas supplier is ultimately up to the business itself. However, our experts have recognised some key factors customers should consider when deciding whether to change supplier. Fidelity is here to make the change a stress-free and seamless process for our customers and can assist in making the right decision. One of the main factors that may motivate a customer to switch gas business suppliers is to save their business money on bills. Ensuring customers have chosen the right tariff suited to their business size, equipment, and location is important to save hundreds of pounds on business gas prices.
Another reason to make the switch is to get a better service from your supplier. Excellent customer support is an attractive quality to customers as they may encounter a query or problem during their contract period. All top-notch business gas suppliers our experts have recommended above offer exemplary service. A huge priority for many businesses is to use green energy to reflect their company ethos. Using renewable energy is an excellent way to keep your business green; fortunately, users can choose green gas tariffs.
How to Get the Best Deals on Business Gas
Our incredible team of business gas comparison experts here at Fidelity is committed to finding our customers the best business gas deals to ensure they save money on their monthly bills. Before we can work our magic, customers must follow a few simple steps to get started. Firstly, customers should provide our experts with basic details such as their business postcode, their current gas supplier, the business’s annual gas usage and the gas contract termination date. This is required so that our comparison tools can work effectively. All personal data is protected at Fidelity.
Once all details have been entered, our experts can hand-pick the best business gas tariffs suited to you, ranging from fixed and variable rates to pass-through and deemed rate tariffs. Depending on factors such as business size, equipment, and location will determine the tariff for you. Once customers have found the tariff with the best business gas prices, our experts will complete the switch so customers can enjoy a hassle-free process.
Business Gas Tariffs Explained:
With so many varied types of business gas tariffs available for our readers to choose from, there is no doubt they will find a contract suited to their business. Our experts at Fidelity work with the leding business gas suppliers across the country to ensure our customers receive the best service and price. Customers must be informed about each tariff type before committing to one. Further detail is provided below.
Fixed Rates
A fixed-rate tariff is one of the most common types of business gas tariff, and as the name suggests, the unit rate is fixed throughout the entirety of a customer’s contract. A fixed-rate tariff can last anywhere from 1-4 years and is popular as customers will know exactly how much they pay without the risk of a price influx. Wholesale prices of gas tend to fluctuate, so having a fixed rate tariff can provide a sense of security.
Customers should note that their gas bills may vary depending on how much is used, however, the unit rate will always stay constant. Businesses that have predictable energy usage are most suited to this tariff type. Completing a business gas comparison with our experts at Fidelity is crucial before committing to a contract.
Variable Rates
Businesses that enjoy flexibility in their gas contract may be most suited to a variable rates tariff. The unit price in a variable rates tariff depends on the wholesale gas market prices, which fluctuate frequently. This means that customers on this tariff can benefit when the wholesale gas prices fall; however, when prices rise, customers will end up paying more than they wish.
Variable rates tariffs do come with the risk of spending high amounts on your business gas bill, however, customers can make significant savings when the market falls. Customers looking for a secure option should opt for a fixed rates tariff, however, those willing to take the risk should try out variable rates.
Extended Contracts
Some leading business gas suppliers will offer their customers an extended tariff, allowing the business to extend their current contract if they wish. The extended contract is often offered at a competitive rate, or if customers have not yet decided to switch or renew their contract, their current supplier will place them on an extended deal. This is a good option if businesses wish to stay with the same supplier whilst potentially benefiting from a competitive deal for extending their contract.
Flex Tariffs
Another business gas tariff that allows customers to save money on their monthly gas bill is the flex approach tariff. This is where businesses will purchase their gas in bulk upfront. Flex tariffs benefit customers as buying the gas for the business in advance saves money as it will be sold at wholesale price. This is a great alternative for larger businesses compared to a microbusiness due to the large upfront cost.
Pass-Through
Under a pass-through business gas tariff, a customer’s bill will be split into two parts: fixed unit costs and variable charges. This contract will potentially result in greater overall savings for customers as they will be protected against volatile market prices. During the duration of a pass-through tariff, the fixed unit costs will remain the same. The variable charges will cover any other costs from your supplier, including Transmission Network costs and National Grid.
Deemed Rate
Deemed rate tariffs are perhaps one of the most expensive types of business gas tariffs and should only be used short-term for this reason. When a business gas contract is up, or a business moves onto new premises, customers will be put onto the standard rate of a deemed rate tariff. This rate will be charged until a customer switches to another tariff, and this can be done anytime without penalty.
Customers should always utilise our business gas comparison tool before committing to a contract to ensure they get the best rates.
What Factors Can Affect My Business Gas Bills?
When deciding the best business gas contract for your business, customers should be aware of how the total cost of gas is calculated. To find the most cost-effective supplier, our readers should be aware of the two key factors that contribute to the overall cost: the unit rate and the standing charge.
The unit rate on your gas bill is the total price a customer pays for each unit of gas used. This is measured in kWh. The unit price can stay the same if a customer is on a fixed tariff, however, the price will vary on tariffs such as a variable tariff. Regarding the cost of unit rate, this is dependent on the business size and the annual gas usage. For example, for a micro business with an annual usage of 5000-15000 kWh, the average gas unit price per kWh is 10.3p. In contrast, a large business with an annual usage of over 65,000 kWh will pay an average of 9.4p per kWh.
On the other hand, the standing charge on your gas bill refers to the amount paid to your gas supplier daily for supplying gas to your business premises and managing the service. The daily standing charge for a microbusiness is an average of 55p, whereas a large business will pay an average of £1.10. These average rates exclude government schemes such as the Energy Bills Discount Scheme.
Customers should be aware that their business will most likely be subject to business gas VAT rates. The standard VAT rate for businesses is 20%, with the exceptions being a business that uses less than 4397 kWh of gas per month or charities, which may only have to pay 5% VAT.
Best Business Gas Suppliers
- British Gas
- SSE
- eON
- Drax
- Pozitive Energy
- Total
- SSE
- Smartest Energy
- Scottish Gas
- Scottish Power
- Opus Energy
- Engie
- EDF Energy
- Crown Gas and Power
- UGP
- Yü Energy
Other Points to Consider Before Switching Business Gas Suppliers
Before making the important decision of switching to another business gas supplier, there are some key points that our readers should consider to ensure they find the most suitable business gas tariff for them. Further detail is provided below by our experts at Fidelity to help you find the best business gas supplier.
Gas Meter Installation
When switching to a new gas supplier business, it is uncommon to have a new gas meter installed unless necessary, such as if the meter is damaged or the property does not have a meter connection. Customers should check this factor before making the switch. Gas meters can either be installed inside or outside of the property, depending on the whereabouts of the building’s gas supply. The installation process is straightforward and will be in the hands of the supplier.
Check Your Current Contract
Despite being seemingly obvious, it is essential that customers check the termination date of any current gas contracts that they have set up. It is important that any current contracts are coming to an end, as a new business gas tariff cannot be set up until the previous one has finished.
While switching to a new supplier or contract will not happen until the current one has ended, customers can sign up for a new one within 6 months of the contract’s end date. Use our exceptional business gas comparison service to start searching for the right tariff for your business.
Business Gas Prices are Not Capped
Another factor to consider before switching gas suppliers is that business gas prices are not capped. Domestic and consumer gas prices are capped, unlike business gas prices, in turn making them more expensive. Therefore, customers must utilise our Fidelity experts to help them find the best gas prices for their business. However, thanks to the Energy Bill Discount Scheme set up by the government, businesses get some relief on gas prices.
Cost Cutting Measures
Every penny counts, especially in regard to keeping costs down on your business gas bills. Our experts have highlighted some tips to help you cut the cost of your gas bills. Firstly, customers can utilise our exemplary gas comparison tools to find the most cost-effective deal, be it with the same supplier or another leading company. Next, customers should invest in efficient technology, such as upgrading boilers and appliances with high-efficiency ratings.
A business should also invest in its premises by insulating walls to keep heat in and installing double-glazed windows. Finally, the most simple tip of them all is turning down the thermostat even slightly. Customers will be surprised by the difference that all of these cost-cutting measures can make.
Business Size
Customers should understand whether their business is a micro business, small, SME or large, as this can impact the gas supplier and contract you choose. Each size business should be handled differently according to circumstance. For example, larger businesses will naturally consume more gas than smaller businesses, so different contracts and tariffs will be suited to both.
Business Gas Jargon Explained
| Business Gas Term | Definition |
| Supplier | A business gas supplier is a company with a valid license to supply gas services to non-domestic premises. |
| Tariff | A plan for how much a customer will pay for their business gas. |
| MPRN | A Meter Point Reference Number is the unique number used to identify the gas supply at a property. |
| Smart Meter | This electricity meter measures gas used at a property, and this data is sent to the supplier. |
| kWh | Killowatt-hous is the measurement of a property’s gas usage by a gas meter. |
| Microbusiness | A business with less than 10 people employed and uses less than 293,000kWh of gas per year. |
| SME (Small Medium Enterprise) | A business with either fewer than 50 employees or fewer than 250 employees. |
| IGT (Independent Gas Transporter) | A type of network that operates gas transportation locally. IGT networks are connected to the GDN. |
| Unit Cost | The unit cost of gas is the amount that a business will pay for each kWh of gas that is used. |
| Default Gas Contract | A type of deemed contract applicable to a property with no fixed term contract or a contract has ended, and no contract has been renewed. |
Frequently Asked Questions (FAQs)
Should I Be Concerned About Gas Prices Rising?
Customers concerned about the rising gas prices can rest assured as there are schemes in place to support businesses when paying their bills. For example, the government has an Energy Bills Discount Scheme, which offers targeted relief and discounts for eligible businesses.
Should I Fix My Business Gas Prices until 2024?
Our experts recommend that customers ensure they fix their business gas prices before 2024, as the Energy Bills Discount Scheme is valid until the 31st of March 2024. This means that businesses may not receive any help from the government with their gas bills so fixing your gas prices before this is ideal. Customers can use our brilliant business gas comparison tools to find the right supplier and tariff for them.
My Gas is Supplied by an IGT – Will This Affect Switching Gas Suppliers?
Customers who are supplied gas by an IGT will not have a problem when switching gas suppliers, it may just take longer than usual. Due to IGTs being sparse, this may cause a customer’s gas tariff to cost more. This is an important factor to check before switching business gas supplier. Customers can still enjoy help from our experts at Fidelity to find the right supplier for their business.
What is Green Business Energy?
Green business gas and energy is a more environmentally friendly option as it is sourced from sustainable sources, including animal waste or plants. Green gas is still in development, so customers should see if it is available to them depending on their postcode.
Am I Eligible for the Energy Bill Discount Scheme?
All businesses and charities with a contract from a licensed supplier of a non-domestic energy and gas supply are eligible for the EBDS. This scheme provides relief for businesses’ gas bills, however, customers should note that the scheme is only running til the 31st of March 2024.
