With ever-increasing pressure to cut overheads and increase profitability, businesses across the UK are looking for ways to improve efficiencies across the board. One area where you can look to save is by getting a business gas online quote to find the cheapest gas supplier for your unique business circumstances.
There are, however, several other factors that come into play when it comes to choosing a gas supplier; and finding one that best suits your business may seem like a daunting process.
In this guide, we’ll discuss the various considerations you’ll need to make when searching for a business gas online quote and finding the cheapest gas supplier in the UK.
Check your contract
Before searching for business gas prices on the internet, get a thorough understanding of how you’ve been already paying for your gas by looking through your current contract.
Is your gas contract linked to your electricity tariff? Are you paying standing fees? How much are you being charged per kWh? Are all your payments up to date, and are there any cancellation fees payable should you wish to switch?
The best ways to do this is to read the terms and conditions of your initial contract or to check your latest bill. This will ensure that you have all the facts at your disposal when the time comes to switch to a new supplier.
Additionally, if you’ve just realised that the contract that you signed up for has already expired, you may already be paying more than you should be!
Businesses that sign up for fixed term contracts are usually switched to variable-rate plans at the end of their contract term, and contracts that have expired are billed for on a rollover contract that may not be best suited to your specific needs.
Once you’ve worked out the terms and conditions of your current contract, you can start looking for the best business energy rates online.
Understanding the estimated price for business gas online involves knowing exactly what your business is paying for and how you should structure your fees.
Fixed or flexible tariff?
It is also worth understanding whether your business is currently paying for gas with a fixed or flexible tariff.
A fixed tariff will apply the same rate throughout the duration of your contract so that you always have a good idea of how much you can expect to pay for your gas.
This is highly beneficial for businesses that have a consistent energy use and can benefit from the ability to accurately forecast business expenses ahead of time.
It ensures that your gas bills hover around the same cost every month, and gives you peace of mind that you are not liable for increased charges should the wholesale price of gas increase.
A flexible tariff, on the other hand, will ensure that your business can take advantage of lower gas rates. However, this can be susceptible to fluctuations in the cost of energy, meaning that it will be more difficult to predict your monthly gas bill.
While there is an inherent risk in this approach, businesses that take flexible rate gas contracts can end up saving significantly over the course of their contract.
It is important to remember that your business will typically use significantly more gas than the average household, so finding a contract that works for your unique needs could save hundreds or even thousands of pounds over the course of your contract.
The variables that determine the cost of your business gas
So, you’ve committed to obtaining a business gas online quote. Now what?
There are many factors that determine the price that you will end up paying for business gas.
Contract length: If your business signs up for a longer contract, you generally end up paying a lower price per unit for your gas.
Credit rating: Reputable businesses with a good credit rating are more likely to receive cheaper tariffs.
Business size and energy consumption: The more gas that you use, the more likely that you will be able to negotiate for a cheaper rate.
Location: If you’re in a big city, you’re more likely going to pay less for gas. Due to the economies of scale, and the cost of transport – those outside of city centres may pay more for their energy.
But how much can I expect to pay?
The best way to calculate whether your business is paying too much for gas is to calculate how much you’re paying per kWh currently, and comparing that cost against the national average. You can also source another business gas online quote for comparison.
Business gas differs from domestic gas in that the price you pay will be calculated by stringent criteria, include a 20% VAT charge, and can be subject to fluctuations in the price of gas on the energy market.
All things considered, it is generally much cheaper for businesses than it is for domestic users.
As of March 2021, very small businesses paid in the region of 4.5 pence per kWh; small businesses paid over 2.5 pence per kWh; medium-sized businesses paid just under 2.5 pence per kWh; large businesses paid just under 2 pence per kWh; and very large businesses paid just over 1.5 pence per kWh.
Trust the experts
Trusting an independent consultancy with no bias to any particular supplier is the best way to save money on your gas contract. With 27 trusted suppliers in our database and a dedicated team of experts that will go to extra lengths to understand your specific needs, Smarter Business will help save you money on your gas contracts.
From conducting audits to identify areas of inefficiency to finding the right type of contract to make the most of your money – we’ll be your go-to for any energy needs.
From helping to formulate green energy plans to help your business towards net-zero carbon goals, to utilising the latest technology to bring costs and emissions down, we’re here to support your business needs right now and into the future.
If you’d like to find out more about how Smarter Business can help you save money on gas or electricity contracts, get in touch with us today.
FREQUENTLY ASKED QUESTIONS
Who is the cheapest gas supplier in the UK?
There is no one size fits all solution when it comes to finding the cheapest gas supplier in the UK. A small business in the centre of London will pay a different tariff to a large enterprise outside of the city centre, and energy suppliers will provide wildly varying quotations based on these factors, among others.
This is why it is so important to compare quotes from trusted suppliers.
With dozens of suppliers across the UK, understanding that one supplier may be cheaper for one business type than another is incredibly important. Listing gas prices based on a quote for one type of business will not help determine which gas supplier is best suited for your specific needs and circumstances.
That is why it is beneficial to regularly check to see how much you are paying against quotations from a number of suppliers, through a number of different tariff options and contract lengths.
Similarly, for businesses that prefer to bundle their business energy and gas tariffs; we cannot answer the question of who the best energy supplier in the UK is without a thorough understanding of your specific business and its needs.
These tips will help you understand how your tariffs compare against other businesses to find a supplier that could work for you.
How do I change my gas supplier?
Once you’ve checked your current contract to see whether you can switch without paying penalties, you will want to perform a business gas price comparison.
You can choose to contact various energy suppliers yourself, or get in touch with an energy broker who will leverage their existing relationships with suppliers to find a favourable contract for you.
Once you’ve found a contract that works for your business to save you money, you will begin the process of switching suppliers.
Fortunately, your energy supply will be unaffected, and you won’t be left without gas while the switch takes place. Your new energy supplier will inform your current supplier of your intention to switch and take care of the finer details.
You will send your address and bank details with your new supplier before your current supplier takes a final meter reading to ensure accurate billing. Once any outstanding fees are paid, you will be able to switch to your new supplier – which will be completed in 21 days.
Included in these 21 days is a 14-day cooling-off period, during which you can change your mind.
There are no changes to pipes and wiring, and the only changes that you will notice are the name of the supplier on your bill and the money left over once you’ve paid it!
Can I change from a dual fuel plan to a gas-only plan?
Provided that you’re willing to change your energy plan, you can definitely change to a gas-only plan. Depending on your current contract, you may have to pay exit fees, but finding the right supplier for each of your energy needs can sometimes save you money. Dual fuel plans may be convenient as you only receive one bill for both your gas and electricity needs – but it is not always the best value for money.
Splitting your energy contracts also provides you with an opportunity to choose a fixed rate tariff for one fuel type and a variable fuel plan for the other. This is where crunching the numbers and exploring your options can pay off.