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New Business Gas – A Guide for Startups


Utility costs can be a big part of your business overheads, so it's vital to compare business gas prices and save money by making sure you’re on the best deal. An effective budget and a hands-on approach to working out where you can save are crucial to surviving those make-or-break first two years. A new business gas comparison is a great way of ensuring you are getting the best deal, but you need to know what you will be offered before you make your decision.

What type of gas tariffs are available for my business?

Gas tariffs for businesses are provided differently to household energy. Energy providers buy the gas you will use throughout your contract in bulk, meaning the wholesale cost is lower. Therefore, your costs are also lower. And while this sounds great in principle, it doesn’t mean you can sign the dotted line without thought. Fortunately, the contracts you can expect to see are the same regardless of provider.

Fixed Rate Tariff:

Choosing a fixed rate contract is the easiest way to predict your new business gas rates. A fixed rate contract can last up to five years and will lock in the unit cost (price per kWh) until your contract ends. Your bill may vary, but this is based solely on your usage.

Variable Rate Tariff:

A variable rate tariff considers any changes in the energy market and adjusts your bill accordingly. While you don’t get any protection from energy price increases, you may benefit from a reduction in energy costs.

Flexible Contract:

If you don’t want to tie your new business into a long-term contract just yet, a flexible gas contract gives you more room to manoeuvre. Most new business gas tariffs have renewal windows for switching, but with a flexible contract, you only need to give 30 days’ notice before switching your business gas provider.

Rollover Contract:

When you don’t agree on a new deal or switch before your contract ends, your energy supplier knows a gas cut-off is the last thing you want. Instead, they’ll continue to supply your business with gas, but at an inflated rate. This could tie you in for up to a year, so be sure to keep up-to-date on when your contract ends and compare prices beforehand.

Deemed Rate Contract:

Similar to a rollover contract, this type of contract starts if you haven’t agreed on a new gas deal before the end of your current contract. Again, you’ll be paying inflated rates, however with a deemed rate contract, you’ll only be expected to pay this for 30 days providing you agree on a new deal or switch business gas within that period. 

How much should my business be paying for gas?

The type of business you have plays a big part in answering this question. For example, a catering company is going to use more gas than a tax consultancy firm, so to suggest an average annual gas usage price would be unhelpful. Instead, it’s best to look at how much you are charged per kWh of energy you use. This creates a transparent and fair way to compare what you are charged with your competitors. Check our handy guide below to see whether you need to run a business gas comparison.

Micro Business:

Average annual usage: 5000 - 15,000 (kWh)

Average Unit Cost: 4.1 - 4.5p

Standing Charge: 23 - 26p

Annual gas price: £300 - £700

Small Business:

Average annual usage: 15000 - 30,000 (kWh)

Average Unit Cost: 3.8p - 4p

Standing Charge: 21p - 22p

Annual gas price: £800 – £1,400

Medium Business:

Average annual usage: 30,000 - 50,000 (kWh)

Average Unit Cost: 3.5p – 3.7p

Standing Charge: 18p – 20p

Annual gas price: £1,500 - £2,000

It’s super easy to compare business gas online. There are plenty of online price comparison sites who streamline the process of finding new business energy. They search for the best new business gas prices from a large variety of energy providers and will only require only a few pieces of information. All you’ll need to hand is a copy of your most recent bill, and your business gas switch will be underway.

How to compare business gas online

A gas energy price comparison is a quick and easy method to reduce your costs, however, it’s not the only way. Additionally, if your business has to wait a while to switch business gas provider, you will still want to lower costs. This is where energy efficiency becomes important.

Normally, becoming energy efficient is a long-term process. However, don’t be surprised to see some short-term impact too! Here are ByteStart’s top tips for creating a gas efficient workplace:

Unblock heat sources:

Ensure any radiators or heating systems are not blocked or covered. This will maximise the temperature of your premises without increasing energy usage.

Prevent draughts from doors and windows:

This sounds obvious but by making sure all doors and windows are kept shut, you can increase your business energy efficiency and over the course of a year which will really make a difference. Draught excluders are valuable investments, but it’s also important to just make sure that windows are closed, especially if the heating is on.

Ensure your boiler is regularly serviced:

A good boiler should work for between 10-15 years, provided it’s kept in good working condition. Regular services ensure your business won’t have to shell out for a new boiler prematurely, but also guarantee it’s running at maximum efficiency.

Run a business energy audit:

Most energy providers will offer this service for free. A business energy audit will find out which of your appliances are costing you the most, helping you to streamline your gas usage. If your energy provider doesn’t offer this service, you can use an energy power saving metre. They’re pretty cheap and will more than pay for themselves once you action the data they provide.

Automate your temperature:

Use an automatic thermo-regulation system to ensure your heating is only in use when it needs to be.

If your business is already gas efficient, or you haven’t switched your gas supplier for a while, run a gas price comparison to make sure you’re getting the best deal. Call our team now for the best advice and support on new business gas rates and usage.

How can I cut my business gas bills?

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