What is included in a business gas contract?

A business gas contract typically sets out the unit rate, standing charge, contract dates and the estimated Annual Quantity used for pricing. Larger sites may also see capacity or transportation charges included separately.

Is there a penalty for ending a gas contract early?

Yes, most suppliers apply an early termination charge if a business exits before the agreed end date, usually calculated based on the remaining contract term and current market rates compared with the contracted rate.

What should I do with my gas contract when moving premises?

Give the supplier written notice of your move-out date and a final meter reading to close the account correctly. Without this, you may remain liable for gas charges at the premises after you have left.

What happens if my actual gas usage differs from the AQ in my contract?

This depends on the supplier's terms. Some contracts include a reconciliation adjustment if actual consumption differs significantly from the estimated Annual Quantity, so it is worth checking how this is handled, particularly for businesses with variable or seasonal gas usage.

Business Gas Contracts UK | Compare Market

Business Gas Contracts Explained

A business gas contract sets out the unit rate, standing charge and term for which a supplier agrees to supply gas to a business premises, along with the estimated Annual Quantity used to model expected billing. As with electricity, there is no statutory cooling-off period once a business gas contract has been confirmed.

This page sets out what to expect from a business gas contract, how early termination works and what happens when a business vacates a metered premises.

Gas contracts include a unit rate, standing charge and estimated Annual Quantity

No statutory cooling-off period applies once the contract is confirmed

Early termination before the end date usually results in a charge

Correct notice at change of tenancy avoids ongoing liability for the outgoing business

What a gas contract sets out

A business gas contract specifies the unit rate per kWh, the standing charge, the contract start and end dates, and the estimated Annual Quantity used to model expected consumption for pricing purposes. Some contracts include a capacity or transportation element for larger users, reflecting the maximum rate at which gas can be drawn from the network.

Early exit from a gas contract

If a business needs to leave a gas contract before its term ends, most suppliers apply an early termination charge to recover the cost of pricing the full term. This charge is typically calculated based on the remaining months of the contract and the difference between the contracted rate and current market rates.

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Change of tenancy for gas supply

Give notice of vacating the premises with a move-out date
Provide a final meter reading to the supplier
Confirm the final bill has been settled
New occupiers should set up their own contract to avoid extended deemed rates

AQ accuracy and billing

If the actual gas consumption during a contract term is significantly different from the estimated Annual Quantity used to set the price, some suppliers adjust the rate or apply a reconciliation charge. Businesses with fluctuating usage, such as seasonal operations, should discuss how this is handled before signing.

Business Gas Contracts: frequently asked questions

Related business energy pages

Business Energy ContractsAn explanation of how business energy contracts are structured, agreed and terminated.Business Gas TariffsAn overview of business gas tariff structures, pricing drivers and contract options.Business Gas RenewalHow to approach business gas contract renewal, notice periods and comparing offers against the market.Business Gas Standing ChargeAn explanation of the business gas standing charge and the factors that cause it to vary.