Gas prices, plans and contracts explained

Business Energy Guides
July 21st, 2020
Gas prices, plans and contracts explained

By understanding gas prices, plans and contracts and comparing energy prices across the Big 6 and a wide range of independents, we can get you the best deal for your business.

We understand that no two businesses are ever alike which is why we compare quotes from British Gas, NPower, EDF Energy, Scottish Power and more.

Depending on the size of your business, you’ll pay anything from 4.3p to 5p a unit with standing charges between 19p and 25p a day. To find the cheapest prices for your micro, small or medium business, we make it easy to compare prices with our transparent and tailor-made quotes. The gas market is highly volatile, with prices changing rapidly in real time. That can influence the type of pricing plan or tariff and contract you opt for:

  • A fixed rate tariff locks in a deal for up to three years and protects your business against sudden price rises. But you can’t switch contracts if the price falls.
  • If your usage is high, a flexible tariff lets you pay upfront. But you’ll lose out if the market price falls after you’ve paid and price rises make it harder to budget.
  • Businesses who are aiming to reduce their carbon footprint should take a look at eco tariffs.
  • Pass-through contracts are a hybrid of fixed and flexible rates. They offer a lower fixed unit price than a fixed rate contract but variable standing charges which can fluctuate in line with government policy.

When it comes to signing up with business gas suppliers, there are two types of contract you want to avoid:

  • Deemed rate gas contract: if you moved into new premises and kept the same supplier or you haven’t switched in a few years, you could be on a deemed rate contract and paying up to 80% more for your energy.
  • Rollover gas contract: Has your contract gone past the renewal window? Then the chances are your supplier will have rolled you over onto a prohibitively expensive contract.

Don’t worry – at Free Price Compare we take the hassle out of switching with our simple step by step process. Not in a renewal window? We’ll get back in touch when it’s time to switch. Whatever contract is right for you, always compare with us to get the best price.

Various factors can affect wholesale commercial gas prices, such as:

  • Charges and fees applied by governing bodies or appointed regulators
  • Demand required and supply available
  • Government related charges, such as climate levies and initiatives
  • Currency and currency exchange rates around the world

Business gas prices may vary depending on business size

Gas unit rates are mainly based on 4 different business sizes:

  • 1. Micro business – less than 10 employees and gas consumption would be les than 293000 kWh per annum, additionally shouldn’t be more than €2m (which is equivalent to £1.8m)
  • 2. Small business – as per EU 2003/361, a small business has less than 50 employees and turn over is up to €10 million.
  • 3. Large business – has 250 employees or more and turn over higher than small businesses.
  • 4. Multisite business – business operates its services from multiple premises. Gas suppliers usually discounts to multisite business as they use more gas.

Business gas price breakdown and quotes

  • Daily gas standing charge (some supplier offers £0 daily charge)
  • Gas unit rate in kWh
  • Current gas supplier details, including tariff name
  • Contract / gas plan end date
  • Annual gas consumption

We would also show following gas contractual information for your peace of mind:

  • Ga price plan terms
  • Estimated gas bill per year
  • Estimated gas bill per month
  • Cancelation terms

Business gas prices for 3,4 and 5 year contract

Region Unit rate kWh
3 year 		 Standing charge
3 year 		 Unit rate kWh
4 year 		 Standing charge
4 year 		 Unit rate kWh
5 year 		 Standing charge
5 year 
East Anglia 3.87 37.55 3.85 40.38 3.64 40.23
East Midlands 3.90 37.32 3.86 40.02 3.65 40.10
North East 3.94 39.27 3.95 43.35 3.72 42.59
North Thames 3.96 40.14 3.94 44.92 3.70 43.69
North Wales 3.96 39.22 3.95 43.15 3.71 42.75
North West 3.93 38.53 3.91 42.36 3.67 41.71
Northern 3.91 38.83 3.89 42.71 3.65 41.72
Scotland 3.95 40.15 3.95 44.82 3.73 43.79
South East 3.99 40.42 3.98 45.68 3.75 44.32
South Wales 3.92 38.75 3.90 42.55 3.66 41.82
South West 3.95 40.62 3.96 45.78 3.75 44.50
Southern 4.02 41.21 4.03 47.14 3.79 45.58
West Midlands 3.94 38.71 3.91 42.59 3.70 41.93

Busines gas prices correct as of 07/05/2020

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