Current Business Gas Prices In The UK

Mihai-Alexandru Cristea 30/08/2022 | 17:12

At present, natural gas fulfils more than 84% of the UK’s heat needs and accounts for 40% of all electricity generation. For businesses, the importance of gas is immeasurable. Here’s our look at the current business gas prices UK customers are facing and what they mean. 


How Are Business Gas Prices Determined?

As with residential gas, the total amount you pay is largely determined by consumption. In this case, the size of your business and how your rate is calculated will play a substantial role in determining how much you’ll pay. 

Other key factors include your geographical location, credit rating, and the length of your gas contract. 

Types Of Rates Explained 

Here are the three ways gas is calculated:


Fixed rates lock your energy bill down, usually for between 12 to 24 months. This plan is best in a stable gas market. 


Variable rate tariffs are subject to changes in the gas market. 


These rates come into play when you move to a location that already has a certain supplier with whom you have not agreed to a contract. 

The Average Price For Business Gas 

Here are the average prices of business gas according to company size and supplier:

Company Size Average Price Per kWh
Micro  5.8p 
Small  2.7p
Medium  2.8p
Large 2.1p 
Extra-Large  2.7p 


Supplier  Daily Standing Charge  Price Per kWh 
British Gas  46p  4.44p 
E.ON 32p  4.43p 
EDF Energy  25p  2.25p
Scottish Power  25p  4.08p
Opus Energy  37p 4.31p
Yu Energy 50p  4.10p 


What Is A Good Price For Business Gas? 

Businesses will always have differing opinions in terms of what they view as a good price for gas. However, this difference in opinion largely stems from the difference in size. 

On average, UK businesses, regardless of size, will pay approximately 2.91p per kilowatt-hour for gas. This amount can thus be measured against your current rate and income to gauge whether or not a rate is ‘good.’ 

How To Reduce Your Business’s Gas Bill

Prior to the fiscal year beginning, it’s always good practice to assess your operations to identify areas for improvement. Gas consumption and general energy efficiency are ideal places to start as they may have a substantial influence on the profitability of your operations. The following are some ways in which you can reduce your gas bill. 

  • Improve your efficiency – This simply refers to your business reducing gas usage by being more efficient in terms of how exactly you use it. For example, you can install automated doors, reduce the temperature or usage of heaters, and install modern equipment that is designed to be energy-efficient. 
  • Combine energy and heating – By using a combined heating and power service, you can reduce your gas bill by around 30%. In addition to this, combined services are generally much easier to monitor. 
  • Install a smart gas meter – It’s important to note that installing a smart gas meter won’t directly reduce your gas bill; doing so is primarily a means of assessing your consumption and developing 
  • Invest in insulation – A substantial portion of business gas is used to heat spaces, which can be very costly in the long run. Investing in high-quality insulation can be a great way to of mitigating the reliance on gas to heat an area. 
  • Seek professional help – The internet is a vast resource that can always be helpful in terms of sourcing industry experts. If you’re unsure as to how you can reduce your gas bill, you can always consult a professional who can conduct an energy audit. 

Frequently Asked Questions 

Is Commercial Gas Cheaper Than Domestic Gas? 

Business gas can be cheaper than domestic gas, however, this can change according to how much gas your business uses and its size. Businesses also pay a higher VAT rate on their gas. 

How Do I Find Out Who My Business’s Gas Supplier Is? 

To do this, you’ll need to find your Meter Point Reference Number (MPRN). Once you’ve found the MPRN, you can call the Meter Number Helpline on 0870 6081524. 

Why Is UK Gas More Expensive Than Other Regions? 

Because it has less nuclear and renewable energy, the UK relies more on gas than other countries in Europe. Additionally, the UK’s gas storages are particularly small, so it is forced to buy gas on the short-term spot market, which can be pricey. 





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