Telephone 0844 472 1567

UK business gas comparison

Oil and gas fieldFinding the lowest business gas prices for your business is now easy with PowerExperts.

You don't need a specialist utility broker to get a quote as the PowerExperts panel helps you reduce your energy bills.

The majority of commercial organisations have their business gas supplied by British Gas through inertia.

However, as rates and tariffs change so often, you should get a new quote each year to check whether you can get lower prices. Your new plan takes effect when your current agreement expires.

This guide prepares your business for the gas contract renewal process. Click on one of the links above to go straight to each section, or continue reading below.

How to get the lowest business gas prices

Compare prices directly online

You can get quotes for commercial gas directly from any of the big six gas providers. But why do that when PowerExperts can compare the whole market for you?

We allow you to compare prices from all six by entering your postcode and annual consumption data. To get a more accurate reading, locate and read your meter.

Switch your contract

Any commercial customers can switch their business gas to a new supplier. You can usually get quotes between 8 and 12 weeks before the end of your existing contract.

Your new supplier handles the switching process, then places you onto a new contract at the new tariff you've agreed with them.

A step by step guide to getting cheaper gas rates

Getting an online quote to lower your rates is now an easy, 60-second process. Simply enter your details with PowerExperts by completing the online form to compare the whole market.

  • Step 1: Find a recent gas bill to estimate your annual consumption.
  • Step 2: Terminate your existing contract with your current supplier.
  • Step 3: Search the market for new gas prices.
  • Step 4: Select the cheapest tariff available for your business.
  • Step 5: Formally approve and sign your new agreement.

Download this spreadsheet to manage your gas supplier switch and check each action off as you move through the process.

The business gas market is extremely competitive with the cheapest unit rates and standing charges reserved for large commercial organisations. However, even the smallest micro-business user can save money by either switching supplier or negotiate new terms with their current provider. Call our team on 0844 472 1567 for help.

So long as your current contract is due for renewal, and you can terminate it within the time set, then you should get a range of quotes. You'll also be able to check if your current prices are the lowest for your organisation's circumstances.

How does the commercial gas switching process work?

Unlike residential comparison services, switching a business contract takes more effort. If you don't have time to manage this process, call our gas broker team to handle the paperwork on your behalf.

  • You always need to terminate your current agreement approximately three months before the end date.
  • You're then free to search the market for the lowest current deals.
  • Select a company and tariff that's right for you, then sign the new contract.
  • Once the new terms come into force, you'll benefit from your new rates for another one to three years.

Check that you're always in a contract. If you forget to renew, but have no agreement, your energy company places you onto an expensive "out of contract" tariff. Although you can quickly move from these rates to a standard fixed-term deal, the prices could be more than four times what you're currently paying.

Although fixed-term rollover contracts have ceased, you'll get out on inflated rates until you sign a new agreement if you do nothing when your existing terms expire.

How is your gas bill calculated?

In its most simplistic form, your gas bill gets calculated by multiplying the units used in kilowatt-hours (kWh) by the unit price (plus any daily standing charges). Calculating kilowatt-hours is a complicated formula for gas made up of the following values.

1: Take meter readings

The meter measures gas in HCF (hundred cubic feet) or HCM (hundred cubic meters) based on the volume of gas passing through the meter. The meter automatically records the consumption in real-time with the latest data recorded each month or quarter.

2: Conversions to cubic meters

Imperial meters are then multiplied by the metric conversion factor to report the data in cubic meters (x 2.83). HCM based meters don't require this conversion as they're already reporting correctly.

3: Correction factor calculation

The metric value is then multiplied by a correction factor of 1.02264. This value is the same for all suppliers and corrects differences in air pressure and temperature in the UK.

4: Regional calorific value

This result gets multiplied by a calorific value that's regionally and seasonally specific. It's a measure of the amount of energy provided by the gas supplier to you. For the Midlands region in Q2, this was 39.2.

5: Conversion from cubic meters to kWh

The result is divided by 3.6 to calculate the total kWh used. All business gas contracts quote the price per kWh unit. Your invoice reflects all the calculations shown above.

Actual prices from a recent gas bill

The extract from a real bill shown below is as follows: 482 HCF units used x 2.83 (to convert to metric) x 1.02264 (conversion factor) x 39.2 (calorific value). The result is finally divided by 3.6 to provide 15,189 kWh.

Be aware for meters starting with 01 to 08 that you may have estimated readings. Almost all providers allow you to enter your meter reading online for 100% accurate bills.

Example gas unit charges per kWh

Meter readings on a bill showing the calculation from cubic feet to total kWh.

Example gas invoice showing the total charges for the quarter

The total gas bill including the unit rate and daily standing charge.

Examples of typical rates

The gas market works slightly differently to electricity. Average kWh costs are lower with daily standing charges higher. You'll need to compare your overall invoice based on consumption to make an informed choice. Recent quotes we have received for small businesses are as follows:

Profile Usage Unit Price Standing Charge
Micro business 1,000 kWh 3.245p/kWh 78.54p/day
Small business 3,000 kWh 3.025p/kWh 76.86p/day
Medium business 6,500 kWh 2.806p/kWh 72.72p/day
Large business 18,400 kWh 2.732p/kWh 70.05p/day

Brokers who suggest you can receive nearer 2.000p/kWh for your unit price are targeting larger users. SMEs are unlikely to receive anything lower than 2.500p currently.

Gas versus electricity prices

Comparable electricity prices are closer to 14.5p/kWh with a daily standing charge of around 27p per day. The kWh price is three to four times higher than a unit of mains gas but the standing charge is three times cheaper.

A mains supply is the cheapest way to receive natural gas. LPG gas is 7.5p/kWh with bottled gas almost the same price as electricity. Always check the standing charge value as this can make a large difference to your overall energy bill.