How to compare business gas prices

Switching your business gas is a straightforward process similar to switching your home supply. Simply add a few details and one of our business energy experts will run a comparison for you, comparing business energy suppliers and tariffs.

Once you've found the deal that suits you best the new supplier will take care of the switch without any disruption to your supply or need for groundwork.

What do I need to switch business gas?

To get an accurate comparison it's recommended to have a copy of your latest bill as this will provide you with:

  • Current business energy supplier
  • Current business gas tariff
  • Payment method
  • Annual consumption and unit rate
  • Gas meter number

What happens once I switch business gas suppliers?

Wait for details from your new supplier who will confirm when the changeover will take place along with agreed costs, payment method and dates. Please do take care to check that all these details are correct before proceeding.

Leave your current direct debit in place until your old supplier has sent a final bill as they may owe you money or vice versa.

As most business customers don't have a cooling off period make sure you are completely happy with your new tariff before agreeing any new contracts.

Is business gas cheaper than domestic gas?

Due to buying in bulk and longer contracts, business energy rates are often cheaper than domestic ones. However a business will normally pay VAT at a rate of 20% compared to only 5% for domestic users.

Rates are also based on usage and size of the business premises. Larger businesses, usually those who consume 55,000kWh of electricity or 200,000kWh of gas each year are considered a large business and these would be eligible for half hourly metering.

What affects business gas prices?

As the UK imports gas, commercial prices are subject to fluctuations based on a number of factors that can change very quickly and in real time. These include:

  • Wholesale prices
  • Supply and demand
  • Currency prices
  • Regulator fees
  • Government levies

For the best way to avoid rising business gas prices, opt for a fixed rate tariff as this will protect you from any price increases if energy costs or variable rates increase over the fixed rate period.

The The Energy Shop experts are on hand to arrange the whole switch for you. To find out how much you could save, fill in the contact form above or speak to one of our experts on 0800 351 837.

How much VAT should I be charged for my business gas?

For most businesses the rate of VAT is 20%. However you may be eligible for a reduction in VAT at a rate of 5% if you are a not-for-profit organisation or run a charity.

Your business may also qualify for a reduced rate if your usage is less than 145kw of gas per day, which is known as the 'de minimis' amount.

Speak to your gas supplier and request a VAT declaration form if any of the above applies to you.

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