Many of us know that switching gas suppliers at home is possible, but how many are aware that you can do the same with your business? It doesn’t matter what scale your business is, whether it’s a start-up or a large corporation, rising gas prices will seriously impact any potential profits.
There has been an ever-increasing pressure for businesses across the UK to meet the costs of rising business gas prices. However, you shouldn’t be dreading that anymore because you can compare gas prices for business easily online. By doing so, you stand a chance to save big by comparing the best rates possible.
How Much Can I Save By Switching?
The rates you pay for your business ultimately depend on your supplier; there are added factors that will have an impact on the price, including:
- The location of the business
- The overall size of the business
- How energy efficient is the business
- The amount of staff the business employs
There are ways in which you can save; for example, if the business is situated at multiple locations, you have the option of signing up for a multiple gas contract. Some suppliers may even give you a discount if you switch to a direct debit payment. There are multiple ways in which you can save, but making a comparison is still the best option.
What Are The Different Tariffs?
Businesses have various options to choose from regarding business gas tariffs. Still, the two most popular for businesses are a fixed rate tariff or a variable rate tariff.
This is the most common tariff that business gas suppliers offer because you sign a contract for anything between one to four years. Unfortunately, it doesn’t offer you much flexibility, so you won’t be able to switch halfway through your contract. However, if the prices the supplier offers are low, then you can save by locking in those prices with the contract.
This tariff offers you the ability to pay for gas in line with what goes on in the energy market. It offers you price flexibility which means you can save a lot, but this is not guaranteed if the overall price of the energy market rises.
Why Not Switch To Green Business Gas?
With climate talks rising monthly, many businesses have started concentrating on reducing their carbon footprint. One of the ways businesses are accomplishing this is by switching to green business gas. The natural process of producing green gas is called anaerobic digestion; it works by converting organic material into biomethane. Green gas is produced using various biodegradable components, and the technique for each varies. After the completion of the anaerobic digestion, CO2 is extracted and subject to fulfilling gas quality criteria. Once the requirements are completed, it is added to the national grid. Almost every gas commercial gas supplier in the UK offers green gas rates. With the added benefit of helping the environment, you also have other advantages like saving money on better gas prices and creating a socially responsible corporate message.
What is the standard price for gas per kWh?
This is only a rough estimate, but the standard gas price is worked out in pence per kWh. It will also depend on the business size, as you can see below:
- Micro business: 5.86p
- Small business: 2.76p
- Medium business: 2.83p
- Large business: 2.18p
- Very large business: 2.75p
What will affect my business gas prices?
Various factors can influence the price you pay for gas, like wholesale prices, supply chains, fluctuations in currency prices, regulatory fees, government levies, and even cold winters.
What if my business is running from home?
If the business doesn’t use more than 50% of gas consumption, you won’t be able to apply for a business gas deal.
As you can see, there are different reasons why any business would want to change its gas supplier. Your company’s operations depend highly on a reliable gas supplier because disruptions can negatively impact your revenue.
In the last six months of your business gas contract, it’s worth comparing to see whether you can get a better deal on gas prices moving forward.
As your company grows, you’ll find yourself paying more on gas, so this makes it even more crucial to make sure you are on the most affordable tariff.