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Business Gas – A Guide to Understanding It

Posted on November 19, 2021 by Allen Brown

Businesses can be taken advantage of by suppliers when it comes to bills. If you are not careful, there may be out-of-contract prices or even hidden rates in your bills. You will learn that finding the best deals that work best for you is crucial to lowering your business costs.

There are various deals out there, and they all depend upon a variety of factors. This is why it is important to understand your business bill and the factors that affect the price of your bills. Here is a guide to understanding how it works and what you should know before making a decision.

What is business gas?

Business gas is the gas tariffs made by suppliers specifically for the workplace. Since the requirements of the commercial areas differ from residential areas, this makes business gas different from domestic gas. Recently CNG cease trading, which has had a major impact on the gas industry and its costs.

What is the difference between business and domestic gas tariffs?

Business gas tariffs are a little cheaper than domestic gas tariffs. This is mostly because they are according to the large commercial requirements. But businesses have to pay charges and levies and 20 percent VAT to abide by the regulations. Unlike domestic consumers, suppliers make customized business gas contracts that fulfill the needs of large commercial consumers.

Factors like the type of business and your usage will influence the cost. And since business gas contracts are usually customized, you will have to discuss with every supplier individually when comparing tariffs.

Moreover, for businesses, suppliers can also ask your credit profile to understand your credit and determine whether you will be able to make the payments or not. Business gas agreements are also usually longer and cheaper because energy is purchased in bulk. But the drawback to this is that businesses have to wait before they can shop for better deals. Once the contract is signed, you cannot change your mind. This makes understanding of the deals and your business gas contract crucial.

How to understand the business gas contract?

You must understand your business gas contract before you sign it. There are some key terms used in business gas that you should know about.

Billing period

This is the period between your bills. Some may prefer a short billing period, while others may want longer billing periods. This can be negotiated when you are settling your contract.

Unit rate

This is the price per kilowatt-hour of gas that is consumed. The unit rate depends on the type of your business, so that suppliers may demand different accordingly.

Standing charge

This is the daily fixed cost that will cover your energy meter maintenance. This cost is on top of the unit rate.

What to do when your business gas contract ends?

When your business gas contract period ends, your supplier will send you a letter of renewal. If you are satisfied with your supplier, you can renew your contract, but if you are not, you can find a better deal and switch your supplier.

Moreover, towards the end, you will receive a final bill according to your current tariffs, so you will have to give the final meter reading to ensure it is accurate. If you do not talk with your supplier or convey your message, they will automatically contract you into an expensive out-of-contract tariff. So it’s important to communicate with your supplier and ensure that they know what you are planning to do with the contract.


This is some of the important information that you should know before you sign your business gas contract. There are many deals, so you must compare gas tariffs beforehand if you want to switch suppliers. So ensure you know what you are getting yourself into.



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