How to understand your business gas bills

Your business gas bill is made up of several different charges, including the cost of the actual fuel itself to government levies, but there are two main elements that make the biggest difference to the price you pay.

These are the two most important charges to look out for when you compare business gas bills and prices:

• Unit cost - The price you pay for each unit of gas (measured in kWh) that your business uses.
• Standing charge - A daily charge that covers the maintenance of the national grid and the cost of transporting gas to your premises.

If you want to know how to calculate a gas bill and work out the amount you’ve paid for the actual gas you’ve used, just take the figure next to the unit cost on the bill. When comparing business gas deals, it’s important to also factor in the standing charge, as this can add a fairly substantial amount to your final bill.

When running a commercial gas comparison, it also helps to know how much businesses like yours are paying, but because businesses must approach suppliers individually for bespoke quotes, it can be difficult to know just how much you should be paying in unit costs and standing charges.

To give you an idea of typical costs, we’ve compiled a list of average consumption figures to help you compare business gas bills

What are the average gas rates?

Business size	Annual usage	Unit price per kWh	Daily standing charge	Cost per year
Micro Business	5,000 to 15,000 kWh	7.7p	42.1p	£924 (based on annual usage of 10,000kWh)
Small Business	15,000 to 30,000 kWh	7.6p	43.0p	£1,857 (based on annual usage of 22,500kWh)
Medium Business	30,000 to 65,000 kWh	7.6p	48.3p	£3,786 (based on annual usage of 47,500kWh)
Large Business	More than 65,000 kWh	7.4p	41.3p	£4,960 (based on annual usage of 65,000kWh)

^{Note: Prices are correct as of May 2024. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from May 1 to May 7, 2024.} 

Switching to a more competitive tariff is the best way to save on business gas bills.

It’s important to bear in mind that the terms of commercial gas contracts stipulate that you can only compare and switch tariffs once your contract enters its ‘renewal window’, which is usually six months before the current deal is due to expire.

When your renewal window comes up, your present supplier should send you a renewal offer. While you may have been happy enough with your business gas bills up until this point, renewal rates are rarely the most competitive on the market. We recommend comparing business gas prices to see what’s on offer.

Contacting different energy suppliers can be time-consuming, and due to all the different variables involved, comparing quotes can be confusing. Uswitch for Business can help you to get a better deal on your business gas bills in just a few simple steps:

1. Give our energy experts a call on 0800 188 4930, or leave your details here and we’ll call you back.
2. After a quick chat, we’ll compare deals from a range of suppliers to find the ones that best suit your business’s requirements and budget.
3. You choose the deal you prefer and we’ll let your old supplier know you’re making the switch so you can start enjoying cheaper gas when your new deal starts.

In the meantime, here are some simple ways that you can be more efficient with the gas your company uses and start to save on business gas bills:

Conduct a business energy audit

Conducting an audit of your business’s gas usage is a good place to start. This can help you see where the majority of your gas is being used and pinpoint possible wastage. A device called an energy-saving power meter can help smaller businesses or microbusinesses to do this, but it’s worth contacting your supplier as they will be able to run an audit for you.

Set the right temperature

Turning down the thermostat by just one degree can help you to save on business gas bills – just make sure you keep temperatures to between 16°C - 19°C, to make sure everyone is comfortable. Using a timed thermostat is another way to reduce heat wastage when the building is empty.

Block any draughts

Do a walk around your building and check doors and windows for draughts. Plug any gaps with simple draught excluders to stop heat escaping.

Don’t block heat sources

It’s also important to make sure that radiators and heaters aren’t blocked by desks or other equipment. This can stop heat from making its way around rooms, causing you to use more gas than you really need to. Keep doors closed to regulate heat in commonly used areas.

Make sure boilers are serviced regularly

Boilers need regular servicing to ensure they’re running as efficiently and safely as possible. Schedule a service once a year to make sure everything is working as it should.

These measures should help you reduce the amount of gas your business uses and save you money. But they’re no match for the savings you can make by switching to a more competitive business gas deal.

Give USwitch for Business a call on 0800 188 4930 to hear how we can help you pay less for your business gas.