How business gas is priced
Your gas meter records consumption in cubic metres or feet, which your supplier converts into kWh using a calorific value and a volume correction factor. The resulting kWh figure is then multiplied by the agreed pence-per-kWh unit rate, with a daily standing charge added on top.
Because the conversion factors used are broadly standard across suppliers, most of the variation in your final bill comes from the unit rate and standing charge you have agreed, rather than differences in how consumption is measured.
Typical gas price ranges
| Business size | Unit rate (p/kWh) | Standing charge (p/day) |
|---|---|---|
| Micro business | 7 - 11 | 25 - 50 |
| Small business | 6.5 - 10 | 25 - 45 |
| Medium business | 6 - 9 | 30 - 55 |
| Large business | 5.5 - 8.5 | 35 - 80 |
What affects your gas price
- Annual consumption band in kWh
- Region and gas distribution network area
- Contract length and start date relative to the market
- Payment method, such as direct debit versus invoice
- Business credit profile
Compare business energy prices
Enter your postcode and business details to compare available commercial energy prices.
Fixed vs variable gas contracts
Most businesses choose a fixed gas contract, which locks in the unit rate for the term and protects against wholesale price rises. Variable contracts track the market and can offer savings when prices fall, but they make budgeting less predictable.
Seasonal demand and pricing
Gas demand, and therefore wholesale pricing, tends to rise in colder months as heating usage increases across the country. Businesses that renew or lock in contracts before periods of high seasonal demand can sometimes secure steadier pricing than those negotiating during peak winter demand.
Comparing business gas quotes
When reviewing gas quotes, check the unit rate, standing charge, contract length and any exit or early termination fees. Also confirm whether the quote assumes your actual historical consumption or an estimate, since this affects how accurate the comparison is.