Understanding Business Gas Prices And Quotes

Getting a good deal on business gas rates is high on the priority list for all businesses. But if you’re relatively new to setting up business utility accounts, or are looking for a better deal but are feeling a little lost in the sea of information, it can be difficult to know where to start. It’s also no secret that gas prices for businesses are far higher than they used to be. Official government figures show that the average price of gas for non-domestic users almost tripled between early 2021 and its early-2023 peak, and it remains around double 2021 levels today. That came against a backdrop of continued cost pressure, with 62% of UK businesses (and 73% of those with 10 or more employees) reporting concern about energy prices in May 2026. Getting a good deal on utilities is more critical than ever.

We’ve pulled together a guide on how to compare business gas prices and quotes, including all the fundamental details you need to know about how pricing is worked out, the different types of contracts available, and of course, current business gas rates.

What are the Current Business Gas Rates in the UK?

Latest Business Gas Tariffs

The table below shows the average gas tariffs currently offered by major suppliers to small businesses, based on recent quotes from our supplier panel. Business gas prices change daily due to a fluctuating market, so these should be considered guides only.

Want to learn more about the companies listed here? Check out our guide to the best business gas suppliers.

How Business Gas Prices Are Calculated and Quoted

Getting to grips with how business gas prices are quoted can help you understand whether you’re getting a good deal or not. In this section, we’ll go through how this is done, as well as cover some different types of tariffs and plans you might come across.

What Is Unit Rate And Standing Charge?

Before we get into how business gas prices work, let’s look at how it is most commonly measured.

Unit Rate

The unit rate is the price (in pence) per unit of gas that your business uses. Your gas meter records volume, but bills are converted into kilowatt hours, so the unit rate is measured in kWh and will be the bulk of your gas costs.

Standing Charge

Standing charge is a daily fee regardless of how much gas your business uses. It covers the cost of supplying gas to your premises as well as maintaining the gas network.

It’s important not to ignore the standing charge as it can be quite significant when calculated over a period of time.

What Are The Different Business Gas Tariff Types And Contracts?

Now we’ve gone through what unit rates are, let’s take a look at tariff types and contracts that gas suppliers provide. All of these will suit different use cases, so getting familiar with them will help you decide which is the best for your own business.

Fixed Rate Contract

Fixed rate business gas tariffs allow you to 'lock in’ the unit price that you pay for the duration of the contract. Normally this is around 1 - 3 years but can vary between suppliers. Fixed rates are usually more competitive than other tariffs and are recommended as they offer the best deal.

Deemed Rates

When you move into new premises with no formal arrangement in place regarding your gas charges you’ll find yourself on a deemed business rate contract. Deemed rates are higher than contracted rates, so you could save a lot of money by switching to another deal.

The advantage of being on a deemed rate is that you can switch to a different tariff whenever is convenient for you, usually by giving 28 days’ notice.

Rolling Contract

A rolling contract (sometimes called out-of-contract or automatic renewal) applies when your fixed-term deal ends and you haven’t agreed a new one. You’re usually rolled onto a further 12-month term at a higher unit price than a negotiated fixed-rate contract, so it pays to line up a new deal before your current one expires.

Green Gas

Green gas tariffs, where some or all of your supply is matched with biomethane or carbon offsetting, are becoming increasingly popular amongst businesses who want to improve their Corporate Social Responsibility (CSR) and reduce their carbon footprint. They aren’t always the most expensive tariff either, so it’s good to shop around.

Whilst there are a few tariff types there are still different terms that can be negotiated within them. Using an energy broker like SwitchPal is highly recommended as you can get quotes from a variety of suppliers across the whole market, ensuring you get the best rates for your business.

How Does Business Gas Pricing Work Then?

So how does this all relate to business gas pricing? Business gas plans aren’t the same as domestic ones, and it is generally more complex to compare prices and find the best deal.

Firstly, you don’t have to use the same supplier for both gas and electricity, although doing so can sometimes offer more competitive 'dual fuel’ deals. It’s therefore important to get a variety of quotes and compare business gas prices.

The unit rate per kWh, which we covered earlier, is based on the size of your business. Small businesses pay more while larger businesses pay less. Every business is different and will have varying requirements based on its business practices and needs. Again, this makes it even more important to use a price comparison service like ours. All you need to do is provide us with a few simple details, and we will be able to offer a range of options from various suppliers, including major suppliers and smaller, independent suppliers.

There are also many reasons to switch, and it’s not just about price. Read our full guide on switching business energy supplier to find out more.

FAQs

Whether you’re setting up your business gas for the first time, or are looking to switch gas suppliers, you may have a few questions. Here’s a selection of FAQs that’ll provide the answers you might be looking for.

What Is The Average Price For Business Gas?

Gas prices fluctuate multiple times a year in response to changes in supply and demand, as well as other market forces. The graph below shows the average price paid by businesses for gas since 2004. As you can see, prices rose sharply during the 2021 to 2023 energy crisis, peaking in early 2023, before easing back somewhat, although they remain well above pre-crisis levels.

Average Gas Price Trend

This graph illustrates the importance of always being on the best tariff for your business, and reviewing your situation periodically as the market changes. This is why a service like SwitchPal can save businesses a lot of time and energy trying to keep on top of this.

How Do I Get Cheaper Gas Rates?

If your business hasn’t switched gas providers in a few years then it’s likely that automatic rate increases have crept their way into your contract. In this situation it makes sense to look for a new contract at a better rate.

It’s also possible to find tariffs with zero standing charge, which is good for seasonal businesses or ones that are only open certain days of the week.

Don’t forget to think about dual fuel options, where you can combine your gas and electricity costs into one consolidated bill. This is not only easier and more convenient, but usually cheaper too (although not always, and can depend on your usage, so remember to shop around!). You can even opt for paperless billing, which might further reduce the cost.

How you pay for your energy can also affect the price. You can usually pay using credit card, direct debit or through a pre-paid meter, with direct debit generally being the cheapest payment method.

One of the best ways to find the best gas rate for your business is to get a variety of quotes from different suppliers and compare them. Simply fill out the form with a few details and we can supply you with quotes from the entire energy market.

Are Business Gas Prices Capped?

No, there is currently no price cap for business gas.

Is Business Gas Charged at 20% VAT?

VAT applies to business gas. This is at a standard 20% rate, although businesses with low gas usage may be eligible for a reduced 5% rate.

What Is The Climate Change Levy?

The Climate Change Levy (CCL) is a government tax on business energy use, designed to encourage energy efficiency. It appears on most business gas and electricity bills, charged per unit of energy on top of your unit rate and separate from VAT. The main rate for gas is 0.801p per kWh for the 2026/27 tax year, the same as electricity now that the two rates have been equalised. Some businesses can qualify for a reduced rate or exemption, including charities engaged in non-commercial activity and businesses with very low energy use.

What Is Your Annual Quantity (AQ)?

Your Annual Quantity is the amount of gas your supply point is expected to use over a year, measured in kWh and calculated from past meter readings. Suppliers use it to price your contract, so it’s worth checking it reflects reality: if your usage has changed significantly since it was last calculated, ask for it to be reviewed, as an inaccurate AQ can mean paying the wrong rate for how you actually use gas. The very largest gas users are moved onto daily metering with individually tailored pricing.

Are There Regional Variations In Business Gas Rates?

Gas prices can and do vary between regions of the UK. This is due to differences in supply and demand at each location, as well as the cost of transporting gas through the regional distribution network that serves your business premises.

Generally, this cost is passed on to you, the customer, which is why we see the variance in prices across the UK.

There’s not a lot you can do about your business postcode, but you can still ensure you’re on the cheapest rate available in your area.

Are Business Gas Rates Cheaper Than Domestic?

Business rates depend largely on the size of the business and the amount of gas used. Business unit rates (price per kWh) might be cheaper because of the amount of gas used, but they pay 20% VAT as opposed to a reduced VAT rate of 5% for domestic gas.

Do Small Businesses Pay More For Gas Than Large Ones?

The table below shows a breakdown of gas costs based on the size of the business and annual usage.

Average Gas kWh Prices

The gap between business sizes isn’t new either. The chart below shows how prices for each size of business have moved over time, and the smaller the business (i.e. the lower the amount of gas consumed), the higher the cost per kWh has consistently been.

Gas Price Trend by Business Size

Larger businesses generally source cheaper energy deals due to economies of scale. They will use more energy per day and therefore gain access to favourable rates.

Bigger corporations are also more likely to shop around for better deals compared to smaller businesses, and they’re usually more proactive about switching when automatic rollover contracts kick in.

It’s a good idea to set up a calendar reminder for when your current gas contract is due to expire so you can begin switching at the right time.

Haven’t quite found the answers you’re looking for in this article? Send us a message and we’ll do our best to help!