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.
Finding cheap business gas can be tricky and time consuming because dual fuel tariffs and off the shelf deals don’t exist for commercial energy. So, the simplest way to ensure best value for money is to compare gas prices per kilowatt hour (kWh).
As a rough guide, the more gas you use, the cheaper the price per kWh. Microbusinesses using between 5,000 - 15,000 of business gas per kWh a year can expect to pay 4.1 - 4.5p per kWh. Small businesses with an annual gas use of between 15,000 - 30,000 kWh will pay around 3.8 - 4.0p per kWh; and medium businesses using up to 65,000 kWh of gas will pay between 3.5p - 3.7p.
You’ll also need to factor in the daily standing charge which ranges from 18p to 26p with microbusinesses paying more than their medium sized counterparts.
Details of what you’re currently paying and how much energy you use can be found on your latest bill, or you can contact your supplier for help.
The business gas kWh price you pay is made up of several elements, such as wholesale price, transportation costs, government levies, and supplier profit. Of course, one of the main factors in determining the price of gas, is supply and demand.
The wholesale price of gas itself is influenced by its availability – the more gas there is, the cheaper it becomes and vice versa. But predicting how much gas is available isn’t easy, as it’s continually sold and transported in huge quantities to businesses all over the country – so keeping track of it in real time is easier said than done.
Subtle changes in the weather can also impact prices depending on how hot or cold it is. Even simple logistics can have a knock-on effect, for example – gas supplies may be capped if a storage facility closes for cleaning or refurbishment – a smaller overall supply but no reduction in demand will ultimately increase prices.
Commercial gas tariffs are tailored to your specific business needs taking into account things like overall energy efficiency and size of premises, so it’s almost impossible to guess how much you could save.
However, back in 2015, the Competition and Markets Authority (CMA) found that 39% of businesses had never switched supplier and 40% hadn’t done so in the previous five years. It means that you could be paying considerably more than you need to for your business gas.
But if you think comparing business gas and finding a better deal sounds like too much hard work – then think again. All the information you need to switch can be found on your bill, such as:
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Get a free quote