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Gas Prices

Business gas bills


Running your own business means making the most of your margin, which is why it’s important to take the time to do your homework and stay on top of everyday costs. But time is probably the one thing you don’t have much of, so we’re here to lend a hand and help turn down the heat on those gas bills.




How to read your business gas bill


The average business gas bill can seem daunting - they’re usually two or even three pages and contain all sorts of abbreviations and numbers that don’t really make a lot of sense. But once you break them down they’re pretty straightforward - here’s what you should look for:


  • MPRN - this is your meter point reference number and identifies your gas supply point.

  • Meter serial number - this is your specific meter (sometimes called a meter ID), always double check this matches the number on your meter, if it doesn’t - you could be paying the wrong amount for your gas.

  • Meter readings - these should be next or close to your MPRN and serial number, it should say whether they are estimated or actual readings.

  • Charges - this shows the amount of gas you’ve used over your billed period along with how many kilowatt hours (kWh) this is, as well as the unit price per kWh and your standing charge.

Your bill will show the address where gas is being supplied, your account number and supplier contact details - which should also include an emergency number if your supply is cut or disrupted.

You may also find a statement summary showing the balance to pay taking into account payments already received.

Keep your bill safe because you’ll need your account number if you speak to your supplier - you’ll also need it for VAT purposes. Plus, the details on your most recent statement will be handy if you decide to switch to a better deal once you reach your renewal period.


Do you have to pay VAT on your business gas bill?


In short - yes, you do. But, the amount of VAT can vary depending on the size and nature of your business.

The standard rate of VAT is 20%, but you may be eligible to the lower rate of 5% if you’re a microbusiness that uses less than 52,764 kWh of gas annually. You might also qualify for reduced VAT if you run a charity, or if more than 60% of your premises is for ‘domestic use’ - for example, student or self-catering holiday accommodation, residential care for the elderly, or hospices.

To apply for lower VAT on your gas, you’ll need to fill in a VAT declaration form which your supplier can provide.


What charges make up your business gas bill?


The price you pay for your business gas isn’t just based on how much you use and its raw (wholesale) cost, a whole host of other expenses are built in too - such as:


  • Operator charges - these are fees that your gas supplier pays to the National Grid, and to local distribution zone operators. It includes things like the cost of holding gas (system operator capacity charge) and moving it across the network (system operator commodity charge). Operator charges also cover ‘unidentified gas costs’ such as illegal use at unregistered addresses, and a ‘shaping charge’ which safeguards against risk to the supplier.

  • Meter management - businesses rent their meters and this covers the cost of maintaining it, you’ll also pay an AMR (automated meter reading) charge if your device is fitted with an AMR reader. A ‘meter reading agency charge’ is also included to meet the expense of someone coming to check and read your meter. You’ll also find your supplier’s margin built into this cost too.

  • Government levies - this includes VAT and the Climate Change Levy.


How much is the average business gas bill?


This can be hard to measure. Naturally, average gas bills for small business will be less than those for larger enterprises, but it’s almost impossible to gauge by how much. That’s because business gas deals are tailored to your specific needs and there are no ready-made solutions, unlike domestic gas.

Several factors affect business gas bills - including where your business is located, its energy efficiency, and of course - how much you use. The simplest and fairest way to compare gas by supplier is to look at the price per kWh. As a rough guide, you can expect to pay:


Business size Unit rate per kWh Standing charge per day
Microbusiness 4.1p - 4.5p 23p - 26p
Small business 3.8p - 4.0p 21p - 22p
Medium business 3.5p - 3.7p 18p - 20p

How to switch business gas supplier


Switching your business gas has never been easier. At GasPrices.co.uk, we do it all for you and it’s as simple as 1,2,3:


  1. Call us on 0800 326 5530 and tell us about your business, who currently supplies you, the tariff you’re on and when it ends - you can find all of this on your latest bill.

  2. We’ll bring you quotes from tried and trusted providers, if you find a tariff you like, we’ll put you touch with your new supplier who’ll handle the switch-over from start to finish. Double check you’re happy with the terms and conditions set out in your new contract - there’s no cooling off period for business gas deals so you can’t change your mind.

  3. Before the big switch, make a note of you meter reading and pay outstanding bills - or claim any money back if you’ve overpaid.

If you’re concerned about your heating cutting out - then don’t, because switching supplier won’t cause any disruption to your supply. In fact, the only thing you’re likely to notice is a boost in your business accounts as you start to make savings - so, pick up the phone, we’re just one call away.

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