What Factors to Consider When Choosing Business Gas Suppliers?

by | Sep 20, 2021

There are many business gas suppliers to choose from in the UK, so selecting the best one for your company is important. Heating and electricity can be costly, but they are essential to run a business successfully. In this blog, you will learn the most important factors to consider when picking a business gas supplier.

1. Price

The energy market can be unpredictable. Therefore, find a reliable supplier who can offer fixed-rate plans to avoid fluctuations in monthly tariffs and prevent nasty surprises with electric rates and power costs. With a fixed-rate plan, you will always pay the same amount each month.

Some businesses are worried about switching energy providers because they will have to pay a high cancellation fee. It’s best to also think long-term to avoid such fees, so make sure you ask about cancellation fees before you choose an energy provider. Moreover, one should find a company that does not require anyone to pay anything for enrolment.

When looking for a reliable gas supplier, be wary of charges that can further increase your gas bill. These include maintenance charges, termination fees, insurance premiums, and (for certain areas) payment for the tanks used to deliver the gas to your premises. You should compare these additional charges alongside the business gas price to get accurate information on the actual expense that you will incur.

2. Contract terms

The normal duration for contracts usually doesn’t exceed two years for domestic customers. Business gas contracts, on the other hand, typically range from 1-2 years. Although getting a shorter arrangement will likely come with a higher renewal rate, if you can lock in a good rate, it could be better than having a longer contract term.

how to find business gas suppliers onlineThe other contract term to pay attention to is the payment setup. There are two kinds of payment calculations for business gas contracts – fixed rate and variable rate. The price of a fixed-rate contract does not change for the duration of the agreement, as the name implies. On the other hand, variable rate will either increase or decrease, depending on the price of the energy source, particularly gas, on the global market.

Both of these contract terms for payment have their own advantages and disadvantages, so ensure that you study the pros and cons of each contract.

3. Quality of gas offered

Before committing to a long-term contract with a business gas provider, you need to make sure that the gas they offer is of good quality. Gas quality will have an impact on your business in several areas.

First, a low-quality gas will emit more harmful substances and chemicals like CO2, particulate matter (PM), and NOx. Aside from damaging the environment, too much emission of harmful substances and chemicals can cause you to violate the Zero Emission Law passed by the UK Parliament.

Next, a low-quality gas will most likely equate to reduced performance, which can affect the productivity of your business depending on how you use the gas.

The quality of natural gas depends on the source material. Enquire with the business gas provider about the materials they use in manufacturing their gas before finalising any contracts.

4. Delivery time

Another factor to consider when choosing among the best business gas suppliers is the delivery rate. Getting your gas on time is really important since your heating and electricity (if you use gas for electricity generation) depend on it. Not having heating and electricity will hurt your business, especially if it happens during operational hours.

Take note that there is no reliable way to know if a business gas company adheres to the agreed-upon delivery date aside from relying on reviews and the opinion of previous customers.

If you don’t want to conduct intensive research on finding the best business gas supplier by yourself, you can always seek the help of an energy consulting firm. If you are in the UK and would like to get in touch with an energy consulting firm, check out our services at Smarter Business. We will help you reduce your energy costs and find the best business gas supplier in terms of price and quality service. By working with us, you will surely find the top 10 business gas suppliers in the UK to choose from.

If you want to try our services, you can get in touch via the following contact details: 0144 422 0060 and info@smarterbusiness.co.uk. As an alternative, you can also write your concerns in our contact form, which can be found here: https://smarterbusiness.co.uk/contact-us/.

Reasons Companies Decide to Switch Energy Providers

who are the best business gas suppliersNowadays, the number of business electricity and business gas distributors providers in the UK has increased significantly. One reason for the increase is the transparency in pricing schemes, which gave many businesses control over their gas and electricity options. As a result, prices have dropped, and thousands of consumers grabbed this as an opportunity to switch suppliers.

Many businesses wanted to switch energy providers due to a lack of service or care from their current supplier. Large, established energy suppliers may have taken advantage of their strong brand name, but their lack of customer care forced consumers to make the switch. Therefore, many businesses turned to smaller energy providers that can give customised plans, handle customer reports effectively, and still help clients save costs.

Tips to Save Your Business Money and Energy

Running a business is not cheap. Office spaces consume a lot of electricity and heating fuel, and the utility bills can go through the ceiling. Fortunately, there are many ways to save money by cutting down on your business’s energy consumption.

  • Perform an Energy Audit. As the owner, you need to conduct a thorough review of your business’s energy usage. Review areas where you think you need refinement and create strategies to cut back energy use.
  • Turn Off the Lights. This would be the simplest way to save energy. If employees aren’t using a room, turn the lights off.
  • Use Energy-Efficient Lights. Replace your old fluorescent with energy-efficient LEDs and CFLs.
  • Use Energy-Efficient Appliances. Like your lights, many appliances have energy-efficient models.
  • Use Solar Power. If you can afford to invest in solar power, it could save you money in the long run.
  • Telecommuting. Nowadays, people can work from their home as effectively as if they are still in an office.
  • Install Motion Detectors. This technology senses if people are nearby. This automatically eliminates the human error factor if people forget to turn the lights off themselves.

Explaining What Natural Gas Is

  • Natural gas is the cleanest burning hydrocarbon. When it is consumed, it releases negligible nitrogen and none of the ash residues and Sulphur oxides that other fossil fuels produce.
  • Natural gas is formed over millions of years by decomposing plant and animal matter buried beneath sedimentary rock layers. These confined deposits are reservoirs used to recover natural gas.
  • Methane is the primary component of natural gas. Before raw natural gas enters the market, it undergoes processing first, which cleans it into methane with some ethane.

If you want to save more on your energy consumption, visit Smarter Business. We are an independent consultancy firm that will help you find cost-effective solutions regarding your energy consumption.

 

FREQUENTLY ASKED QUESTIONS

Is gas cheaper for domestic users or businesses?

Business gas is cheaper because business gas providers sell in higher volumes. Companies usually consume more gas than an average household. Therefore, providers offer them tailored rates that meet their specific needs, making it cheaper than domestic gas. Meanwhile, domestic buyers aren’t offered tailored rates.

Can I choose my natural gas provider?

Yes, but only if you live in a state like the UK where their natural gas market has been deregulated. If so, this means you can choose from any gas supplier, whether they are a big or small business gas supplier, as long as they are registered, certified, and have the needed license to operate.

How much should I pay for gas?

It depends on where you live and how much of it you consume. For instance, if you live in the UK, the average gas bill is £35 for two people with a one or two-bed flat; the more you consume, the larger your overall bill.

Is it cheaper to pay for gas and electricity separately?

It is cheaper if you choose the same business gas supplier for your gas and electricity. Suppliers’ sales teams tend to add great discounts if their consumers pick them as their main supplier for both. However, if you will choose a separate supplier, then it would be more costly.

Is business energy regulated?

In every state or country, a government body is tasked to regulate the corporate gas suppliers and electricity suppliers. Their role is to protect the interest of the consumers by maintaining fair competition among the suppliers. They issue licenses and permits for them to operate legally.

How many business energy suppliers are there in the UK?

Based on the latest count by Ofgem, the total number of business energy providers in the UK has reached 175. All of these energy suppliers are registered and have the license to operate. Out of these 175 suppliers, the majority of businesses tend to choose the six most popular energy providers as their suppliers.

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