Business Gas

Business gas is commonly used for heating, hot water, catering, manufacturing and other commercial processes.

For some organisations, gas is mainly used during colder months. For others, such as restaurants, hotels, care homes, laundries and manufacturers, gas can be central to day-to-day operations.

Business gas contracts usually work separately from business electricity contracts. Even if you use the same supplier for both, the rates, contract terms and renewal dates may be different.

How business gas contracts work

A business gas contract usually includes a unit rate and a standing charge.

The unit rate is the price you pay for each kWh of gas used. The standing charge is the fixed daily cost for keeping your premises connected to the gas network.

Your final bill may also include VAT, Climate Change Levy and other supplier or broker-related charges.

The total cost depends on both your rates and your usage. A business with high heating or catering needs will usually be more sensitive to changes in the unit rate than a low-usage office.

What affects business gas prices?

Business gas quotes can depend on:

• Annual gas consumption
• Premises location
• Meter type
• Contract length
• Market conditions
• Payment method
• Business sector
• Credit checks
• Whether you use a broker
• Whether the quote is fixed or variable

Gas prices can change over time, so a quote available today may not be available later. This is one reason to review your options before your current contract expires.

What is an MPRN?

An MPRN, or Meter Point Reference Number, identifies your gas supply.

It is different from the meter serial number. Suppliers use your MPRN to confirm the correct premises and gas supply point when preparing a quote.

You should be able to find your MPRN on your gas bill. If you cannot find it, your current supplier should be able to help.

What information do you need to compare business gas?

To compare business gas quotes, it helps to have:

• A recent gas bill
• Your business address
• Postcode
• Current supplier
• Annual gas usage
• Current unit rate
• Standing charge
• Contract end date
• MPRN
• Meter readings
• Payment method

If you have just moved into premises, take a meter reading as soon as possible and contact the current supplier.

Fixed vs variable business gas

A fixed-rate gas contract gives you more certainty over your unit rate. This can be useful for businesses where gas is a major cost.

A variable tariff may offer flexibility, but your rates can change. That could be useful if prices fall, but it can also expose your business to higher bills.

Business gas for high-usage businesses

Some businesses rely heavily on gas. This can include:

• Restaurants
• Hotels
• Care homes
• Manufacturers
• Bakeries
• Launderettes
• Leisure centres
• Agricultural businesses

For these businesses, a small change in unit rate can have a large impact over a year. It is worth comparing total annual cost rather than only looking at the daily standing charge.

How to reduce business gas costs

You may be able to manage gas costs by:

• Servicing boilers regularly
• Using heating timers
• Reviewing thermostat settings
• Insulating pipework
• Zoning heating by room or area
• Maintaining catering equipment
• Submitting accurate meter readings
• Checking seasonal usage patterns
• Reviewing your contract before renewal

Reducing waste can be especially important for businesses with long opening hours or large premises.