Running a business is costly, so you should look to save money wherever possible. According to energy provider Utilia, 59% of UK SMEs can’t find the time to shop around for business energy deals, which is understandable, given you’d rather focus on the revenue-generating tasks. But, are you missing out on potentially massive business gas bill savings?
Here at Capalona, we have partnered with Love Energy Savings which means we’re focused on saving UK SMEs money – money you can put back into your business to help sustain growth.
Get a quote and start comparing business gas suppliers now.
Why switch business gas? How to switch business gas supplier Types of business gas tariffs What is the average cost of business gas? How business gas prices are calculated What is the VAT rate on business gas? Is business gas cheaper than domestic? Who is the cheapest business gas supplier? How long does it take to switch business gas supplier? What is an MPRN number? How can I reduce my gas bill? Can I get business gas if I work from home? Is your business gas comparison service free?
Why not? You stand to save money by switching the business tariff you’re on. Switching your supplier can mean you find a better fit for your business. The most common roadblocks for switching business gas suppliers is that it’s deemed too time intensive. But we’re here to show you that’s not the case.
Start your business gas comparison journey – get your quote today.
Firstly, you’ll have to wait until your current business gas contract expires. You can usually switch suppliers up to six months before your contract runs out. Ready to switch? You don’t have to get heavily involved in the process. The leg work is carried out by our partner Love Energy Savings – you can focus on running your business.
You can switch your business gas supplier in just three simple steps:
Step 1 - Start by filling in this form. We’ll need information about your current gas supplier, your average bill, your name and contact details. That’s all.
Step 2 - We’ll share the best business gas supplier information with you. Take your time and choose the right supplier for your business needs.
Step 3 - Once you’ve chosen the best supplier, the supplier will take care of all the details and ensure there’s no disruption to your gas supply.
Easier than you thought? Start comparing gas suppliers now.
Please note you’ll have to pay off any outstanding gas bills and take a final meter reading before switching supplier. This shouldn’t take you long.
To get the best gas deal for your business, you need to understand the tariffs you can choose from. There are three options: fixed rate, variable rate and no standing charge tariffs – read about each below.
A popular choice amongst UK SMEs is a fixed rate tariff because the price you pay stays the same for your gas contract duration. This is a good option if you needed predictability with your business outgoings.
But, if supplier prices were to decrease, you wouldn’t see the benefit of cheaper bills, but, in the same vein, if prices were to increase, you wouldn’t lose money either. This tariff offers businesses certainty.
This tariff is very much market-dependent. Unlike a fixed rate tariff, a variable rate tariff offers flexibility for businesses. You can benefit from cheaper gas should market prices drop, but you will be required to pay higher business gas rates should the market price increase. If prices did continue to rise, you have the option of switching to a fixed rate tariff with 30 days’ notice.
When you pay for business gas, you’re usually required to pay a unit price and a standing charge. A standing charge is a daily rate you pay your gas supplier in addition to how much gas you use. With a no standing charge tariff, you don’t pay this daily charge; instead, you will pay more for the gas your business does use. This tariff would only really be a good option for seasonal businesses who might not use gas at all during some months of the year.
Know which tariff is best for you? Get your quote and start comparing suppliers.
In 2020, UK businesses paid on average, 2.495 pence per kWh for their commercial gas. The unit cost of business gas varies depending on your business's size (how much gas you use) and other factors, including your location and the type of contract you choose.
The more your business consumes, the cheaper the gas unit price will be. According to new data published by the Department for Business, Energy and Industrial Strategy, the average gas price per kWh by band size (excluding the Climate Change Levy (CCL)) in the third quarter of 2020 were as follows:
Here’s a helpful breakdown of non-domestic sector gas usage from the government website:
A ‘very small business’ that uses less than 287,000 kWh per year would pay around 6.025 pence per kWh on average. So, for example, if your business consumes 50,000 kWh, you would expect to pay around £3,012.50 in commercial gas a year.
A ‘very large business’ using over 277,778,000 kWh per year at 1.306 pence per kWh would pay around £3,627,780.68 in gas a year.
You can see from the figures above that larger businesses pay less per kWh than smaller businesses. If you’re a bigger company, you can expect to pay less per kWh.
Ready to save money on your gas bills? Compare gas suppliers.
Calculating your gas is more complicated than calculating business electricity. A gas meter will provide data in either cubic metres (m3) or cubic metres (m3). This will then need to be converted into kilowatt hours (kWh).
Gas Units Used x 2.83 (multiplier value to convert to cubic metres) x 1.02264 (Conversion Factor) x Calorific Value divided by 3.6 = Total Number of kWh.
Now that you have converted into kWh, you can now multiply by the price per kilowatt hour to get the total cost of your gas:
Total Number of kWh x Unit Price per kWh + Daily Sanding Charge = Total Gas Cost.
Gas Units Used x 1.02264 (Conversion Factor) x Calorific Value divided by 3.6 = Total Number of kWh.
Again, now that you have converted into kWh, you can now multiply by the price per kilowatt hour to get the total cost of your gas:
Total Number of kWh x Unit Price per kWh + Daily Sanding Charge = Total Gas Cost.
There may be other factors to consider when calculating the cost of your gas, including your location, business size and meter type.
Business gas is charged at 20% VAT. Some businesses may be eligible for a reduced VAT rate. For example, if you’re a charity or not-for-profit organisation, you can expect to pay 5% VAT.
Yes. The average unit rates are cheaper for businesses than for domestic customers. Although businesses pay less per unit, they pay 20% VAT on business energy bills, as opposed to domestic VAT which stands at just 5%.
There isn’t a single “cheapest” business gas supplier. How much you pay depends on how much you use and which tariffs you opt for. To find the cheapest deal for your business, use our free comparison service. Get your quote today.
The process of switching business gas supplier can take between four and six weeks. If you’re still in a contract with your original supplier, it can delay the process. You can usually start the switching process between a one and six-month window before your current contract ends. Make sure you leave plenty of time to find yourself the best supplier deal.
You can make sure the switch is as frictionless as possible by quickly providing any information requested by the supplier.
Ready to switch? Get your quote today.
An MPRN stands for Meter Point Reference Number and is the unique reference number for your gas supply. You can find the MPRN on any bill from your gas supplier; it will help your new gas supplier identify your gas meter.
You can reduce your business gas bill by comparing suppliers. One in ten businesses admits to never having shopped around for a better energy deal. Don’t be that business; there could be a much better deal out there.
You might think switching suppliers is a headache, but it doesn't have to be. Use our quick and easy comparison tool to find the best business gas supplier.
Using a comparison site like Capalona means you do not have to contact multiple suppliers to compare gas tariffs, we do all the leg work for you. And the best bit? Our comparison site is 100% free for you to use.
Start saving on your gas bills today; get a quote.
You can only get business gas if more than 50% of it is used for your business. If you run a business from home, it would be reasonable to assume you can get a business gas deal, but, sadly, that’s not always the case.
If you’re not eligible for a business gas deal, don’t worry, just try and find the most cost-effective domestic gas tariff available to you.
Yes, our comparison service is 100% free for you to use. Our entire purpose at Capalona is to help you locate the best deals for your business.
We’ve helped thousands of businesses save on their energy costs, let’s see how much we could help you save.
*40% average saving can be achieved when compared to your energy suppliers standard out-of-contract deemed rate.