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Compare Business Gas Prices | November 2024

Compare business gas prices from a panel of trusted suppliers to find the best rates. The table below highlights the average one-year fixed gas prices available through our service, updated weekly by our experts.

SizeAnnual Consumption kWh1 Year fixed gas rate p/kWh
Small10,000 to 50,0006.6
Medium50,000 to 100,0006.2
Large100,000 +6.0

Source: AquaSwitch – Business Gas Prices

Important Note: These business gas prices are average weekly figures. The prices available to your business will depend on specific factors related to your business gas supply and daily market fluctuations.

Current business gas prices

Business gas prices have fallen significantly over the past two years. Find out how much you could save with our business gas comparison service.

Graph of current business gas rates - 06 November 2024 update

Source: AquaSwitch – Business Gas Prices

Compare business gas in three simple steps

Ready to save on your business gas bills? Comparing prices has never been easier! Our business gas comparison tool helps you find the best rates by considering unit rates and daily standing charges.

Just follow these three simple steps to take advantage of cheap business gas rates:

Provide a Few Simple Details

Provide a Few Simple Details

Give us a few details from a recent business gas bill: business address, current supplier, annual gas usage, and contract end date.

Compare Business Gas Prices

Compare Business Gas Prices

Our business energy experts will gather a range of business gas quotes which calculate your expected annual cost making comparison easy.

We'll Handle Your Gas Switch

We'll Handle Your Gas Switch

Let our experts handle the switch to your new business gas supplier. We only need a signature on your new contract and our LOA.

Benefits of business gas comparison

Here are the top three reasons to compare business gas prices for your company today.

<h3>Save Money</h3>

Save Money

Renewal quotes from business gas suppliers are often uncompetitive. By comparing business gas suppliers, you can find the best rates available in the market.

<h3>Save Time</h3>

Save Time

Gathering quotes from business gas suppliers yourself can be a lengthy process. Allow our business gas experts to handle the research, saving you valuable time.

<h3>It's Free</h3>

It's Free

Our business gas comparison service is completely free. You don’t have to accept one of our quotes, but if you do, we’ll arrange a hassle-free switch for you.

Average business gas rates

The table below displays the average business gas rates in the UK, including one-year fixed gas rates offered by business gas suppliers for 2024, alongside rates from the previous three years for comparison.

SizeAnnual Consumption kWh2021 average rates p/kWh2022 average rates p/kWh2023 average rates p/kWh2024 average rates p/kWh
Small10,000 - 50,0005.0716.318.916.27
Medium50,000 - 100,0003.6515.878.515.77
Big100,000 +4.2815.628.365.57

💡Business Gas Rates have fallen significantly since their peak in the Autumn of 2022 but remain approximately twice as expensive as the historical average.

Source: AquaSwitch – Business Gas Prices

Business Gas Prices Explained

Choosing the right business gas supplier and tariff is crucial for business owners – heating properties with gas is one of the most expensive overheads for SMEs.

The important thing to remember about business gas rates is that, unlike the domestic energy market, no price cap protects them. If your company is paying out-of-contract business gas rates, you could be wasting thousands on uncompetitive rates.

What’s included in business gas rates?

Business gas rates are the charges companies pay to use natural gas from the gas mains network.

These rates are outlined in your gas tariff and used to calculate your monthly business gas bill.

Here’s a summary of the different types of business gas rates:

  • Unit Price: A charge for each unit (kWh) of gas consumed, measured automatically by a smart meter or through manual gas meter readings. Unit rates can be fixed or variable.
  • Daily Standing Charges: A fixed daily cost, calculated in pence per day, covers the maintenance of your connection to the local gas distribution network.
  • Climate Change Levy (CCL): A government tax encouraging efficient gas usage, charged at 0.775 pence per kWh.
  • Expected Annual Cost: Defined in all business energy contracts, this figure calculates the total annual cost of your tariff based on your estimated annual gas consumption.
  • Value-Added Tax (VAT): Business gas rates are subject to VAT under UK law. Microbusinesses pay 5% VAT, while all other businesses pay the standard rate of 20% on top of the unit price, daily standing charges, and CCL. Learn more in our VAT on business energy bills guide.

How much is business gas per kWh?

The cost of 1 kWh of business gas varies based on several factors, including the supplier, location, tariff, and the state of the wholesale gas market. Over the past year, the market cost for 1 kWh of business gas has ranged from 6 to 12 pence.

Request bespoke gas quotes for your business with our business gas comparison tool.

What is a good business gas rate?

A good business gas rate aligns with current market conditions and offers competitive pricing compared to other available rates. It takes into account:

  • The state of the wholesale gas market: Prices fluctuate based on supply and demand dynamics.
  • Geopolitical influences: Events like the Ukrainian conflict can significantly impact prices.
  • Contract terms: Fixed rates provide stability, while variable rates may offer lower costs depending on market conditions.

In Britain, there are over 30 business gas suppliers competing to offer the best prices. At Business Energy Deals, we specialise in connecting small businesses with the best business gas rates.

Find out how much we can save your business today.

Average annual business gas usage in kWh

Annual gas consumption is a crucial factor in determining the business gas prices available to you, and you’ll need to estimate your consumption when signing a new contract to switch business energy suppliers.

For guidance, the table below outlines average gas consumption figures for businesses of various sizes, helping you to assess and plan your energy needs effectively.

Business SizeAverage Annual Gas Consumption (kWh)
Micro5,000
Small Business15,000
Medium Business35,000
Large Business75,000
Industrial500,000
Average British Home12,000

Source: Statista: Business Energy Consumption UK.

How are business gas prices calculated?

The business gas prices presented above are weekly averages. The prices available through our business gas comparison service depend on the following specific factors:

Wholesale price of gas

Wholesale price of gas

Business gas suppliers purchase natural gas from producers and European and LNG importers. The most important determinant of gas quotes is the prices that suppliers can secure when purchasing gas to supply your business.

Length of contract

Length of contract

Typical business gas quotes are fixed between one and three years. Suppliers usually offer a discount for longer contracts to reward loyalty; however, this also depends on the market’s expectations for future gas market conditions.

Your gas network

Your gas network

Regional gas distribution networks and independent gas transporters charge distribution fees that vary based on the location of your commercial property.

Market competition

Market competition

Gas suppliers incorporate a profit margin into their business gas quotes. When a supplier is seeking to grow their business, they may offer more competitive quotes with a lower profit margin to attract new customers.

Green gas supplies

Green gas supplies

Some business gas suppliers offer green commitments, such as sourcing a percentage of your gas from biogas or investing in carbon-negative projects on your behalf. Green commitments typically raise the price of business gas quotes.

Gas connection

Gas connection

The capacity of your business gas connection, recorded within your MPRN, determines the fixed charges for maintaining the connection to your business gas meter.