Find the cheapest business gas rates per kWh in January 2026
Managing your business’s gas costs can be a critical factor in keeping operational expenses low. Gas is a key energy source for many businesses, whether it’s heating office spaces, fueling industrial processes, or powering commercial kitchens. However, with business gas prices constantly fluctuating, it can be difficult to know if you’re paying more than you should.
At EnergyCosts.co.uk, we provide an efficient and straightforward business gas price comparison tool that enables you to find the best gas tariffs for your business. Our service is designed to take the hassle out of comparing suppliers, so you can focus on what really matters—running your business.
Average business gas tariff prices – commercial rates per kWh
Business gas prices vary by region, business size, and consumption, making it essential to compare multiple tariffs. Below is a table showing the average price per kWh for business gas in the UK based on business size:
| Supplier | Unit rate PC 01–04 (p/kWh) | Standing charge PC 01–04 (p/day) | Unit rate PC 05–08 (p/kWh) | Standing charge PC 05–08 (p/day) | Estimated monthly cost (10,000 kWh) | Estimated annual cost (120,000 kWh) | Standing charge share (%) | Renewable / green gas (%) | Best suited business type |
|---|---|---|---|---|---|---|---|---|---|
| Octopus Energy | 7.8 | 95 | 7.2 | 180 | 1,065 | 13,847 | 25% | 0 | Offices, retail |
| British Gas | 7.5 | 100 | 7.0 | 200 | 1,050 | 13,725 | 27% | 0 | Hospitality, shops |
| EDF Energy | 8.2 | 110 | 7.6 | 240 | 1,160 | 15,030 | 27% | 0 | SMEs, light industry |
| E.ON Next | 8.5 | 120 | 7.8 | 260 | 1,210 | 15,605 | 29% | 0 | Growing SMEs |
| SSE | 8.0 | 105 | 7.4 | 230 | 1,145 | 14,855 | 27% | 0 | Multi-site businesses |
| Scottish Power | 8.3 | 115 | 7.7 | 250 | 1,175 | 15,250 | 28% | 0 | Shops, offices |
| Utilita | 7.4 | 95 | 6.9 | 200 | 1,025 | 13,410 | 26% | 0 | Small retail |
| OVO Energy | 7.9 | 100 | 7.3 | 220 | 1,090 | 14,200 | 27% | 0 | Service businesses |
| Opus Energy | 8.1 | 130 | 7.5 | 280 | 1,195 | 15,745 | 30% | 0 | Medium SMEs |
| TotalEnergies | 7.7 | 105 | 7.1 | 240 | 1,085 | 14,150 | 27% | 0 | Industrial SMEs |
| Yü Energy | 9.2 | 300 | 8.8 | 1,100 | 1,460 | 19,530 | 46% | 0 | OOC / distressed sites |
| Drax | 8.6 | 180 | 8.0 | 420 | 1,310 | 17,430 | 35% | 0 | Large SMEs |
| Crown Gas & Power | 8.0 | 140 | 7.4 | 300 | 1,180 | 15,680 | 31% | 0 | SMEs |
| Good Energy | 10.5 | 220 | 9.8 | 420 | 1,710 | 22,335 | 36% | 100 | ESG-led businesses |
| Ecotricity | 8.4 | 90 | 8.4 | 350 | 1,110 | 14,850 | 22% | 100 | Sustainable SMEs |
| Utility Warehouse | 7.3 | 85 | 6.8 | 160 | 985 | 12,915 | 24% | 0 | Microbusinesses |
| United Gas & Power | 7.0 | 600 | 7.0 | 4,000 | 1,390 | 18,780 | 52% | 0 | Legacy / OOC contracts |
| Ruby Energy | 9.8 | 300 | 9.2 | 500 | 1,580 | 21,240 | 43% | 0 | High-risk contracts |
| SEFE Energy | 6.9 | 220 | 6.5 | 450 | 1,115 | 14,370 | 34% | 0 | Energy-intensive SMEs |
These figures are indicative of average prices, but the actual cost will depend on your location, contract terms, and supplier. Our comparison tool ensures that you get the most accurate and competitive prices for your business.
Methodology used
- Profile classes:
- 01–04 = small / micro-business
- 05–08 = larger SME
- Gas usage assumptions:
- Monthly: 10,000 kWh
- Annual: 120,000 kWh
- Prices shown in p/kWh and p/day
- Excludes VAT and CCL
- Estimated monthly cost = (unit rate × 10,000 ÷ 100) + (standing charge × 30)
- Estimated annual cost = (unit rate × 120,000 ÷ 100) + (standing charge × 365)
Why compare business gas prices?
Business gas prices are often overlooked when companies evaluate their energy expenses. Yet, for many businesses, gas represents a significant portion of their energy usage. Comparing prices regularly can lead to big savings and ensure your business stays on the most competitive tariff. Here are some key reasons why comparing gas prices is essential:
- Cost savings: Switching to a more cost-effective gas tariff can save your business hundreds or even thousands of pounds annually.
- Improved cash flow: Predictable, lower gas costs make it easier to plan your financial outlay, providing more funds for other essential business operations.
- Avoid being overcharged: If your business hasn’t reviewed its gas tariff recently, you may be paying more than necessary, especially if you’ve been rolled over onto a standard or default rate.
- Access to fixed-price deals: By comparing tariffs, you may find long-term, fixed-rate options that protect your business from price fluctuations.
How our comparison tool works
- Input your business details: Start by entering your business postcode and gas usage. This helps us generate the most accurate quotes for your specific situation.
- View and compare tariffs: You’ll receive a list of gas tariffs from a range of suppliers. Each option is clearly displayed, allowing you to compare prices, contract terms, and additional services, such as green gas options.
- Switch hassle-free: Once you’ve selected the best deal, our team will guide you through the switching process, ensuring there’s no disruption to your gas supply.
We understand that your time is valuable, so we’ve made our gas price comparison tool quick and simple. In just a few minutes, you can find competitive quotes from multiple suppliers and choose the best option for your business.
Factors affecting business gas prices
Business gas tariffs differ from domestic tariffs due to several key factors. Understanding these can help you make more informed decisions when comparing suppliers.
- Business size and consumption: Large businesses that use significant amounts of gas often receive lower per-unit prices compared to smaller businesses. However, even smaller businesses can secure competitive deals by shopping around.
- Location: The region where your business is located can impact the price of gas, as transport and distribution costs vary across the UK.
- Contract length: Most business gas contracts run between one to five years. Longer contracts typically offer more price stability, while shorter ones may offer more flexibility but can expose you to market price changes.
- Fixed vs. variable rates: Fixed-rate tariffs guarantee the same price per kWh throughout the contract, while variable-rate tariffs fluctuate in line with market prices. Businesses with high energy usage may benefit from the predictability of fixed rates, while smaller businesses may prefer the flexibility of variable rates.
Benefits of switching business gas suppliers
Switching gas suppliers has never been easier. Many businesses stay on the same tariff for years, often missing out on potential savings. Here’s why making the switch could benefit your business:
- Immediate cost savings: By switching to a cheaper tariff, you could lower your gas bills instantly. For example, a small business consuming 20,000 kWh per year could save around £100-£200 annually by moving to a more competitive deal.
- Better contract terms: Switching suppliers allows you to negotiate favourable contract terms, such as lower standing charges or longer fixed rates, reducing your overall energy costs.
- Eco-friendly options: Some gas suppliers now offer carbon-neutral or renewable gas tariffs, allowing businesses to meet their sustainability goals without increasing energy costs.
- Avoiding automatic renewals: Many businesses are automatically rolled onto a higher-priced standard tariff when their contract expires. By regularly comparing tariffs, you can avoid this trap and ensure you’re always on the best deal.
How to choose the best business gas supplier
When comparing gas prices, it’s important to look beyond just the price per kWh. Here are a few other factors to consider when choosing the best supplier for your business:
- Customer service: Opt for a supplier with strong customer support and good reviews to ensure any issues are resolved quickly and efficiently.
- Billing options: Some suppliers offer flexible billing, such as monthly, quarterly, or biannual options. Choose a payment plan that best suits your business’s cash flow.
- Contract terms: Ensure the contract length, rates, and any potential exit fees align with your business needs and future plans.
Start comparing business gas prices today
Managing your business gas costs doesn’t need to be a time-consuming task. With our easy-to-use price comparison tool, you can find the best tariffs available in just a few minutes. Whether you’re looking to switch suppliers or renew your current contract, we’ve got you covered.
Start saving on your business gas costs today by using our quick and straightforward price comparison tool.
How UK business gas pricing works
Business gas prices are made up of several components, not just the unit rate quoted by suppliers. Understanding how pricing is structured helps businesses compare quotes accurately and avoid unexpected costs.
The largest element is the wholesale gas price, which fluctuates based on global supply and demand, storage levels, weather patterns and geopolitical factors. Suppliers purchase gas in advance or closer to delivery, and their buying strategy influences the rates they offer.
On top of wholesale costs are network charges, which cover the transportation of gas through the National Transmission System and local distribution networks. These charges vary by region and usage level.
Most tariffs also include a standing charge, covering metering, billing and account administration. VAT is typically charged at 20%, although some smaller businesses may qualify for the reduced 5% rate. The Climate Change Levy (CCL) may also apply, depending on business type and usage.
Business gas contract types explained
Business gas contracts differ significantly from domestic tariffs and choosing the right contract type can have a major impact on overall costs.
- Fixed-rate contracts lock in a unit rate and standing charge for a set period, usually between one and five years. These contracts provide budget certainty and protection from price rises, making them the most popular choice for SMEs.
- Variable and deemed contracts apply when a business is not on an agreed fixed deal. Rates can change at short notice and are usually much higher than negotiated contracts, making them one of the most expensive options.
Contract length also matters. Shorter contracts offer flexibility but less protection from market volatility, while longer contracts provide stability but reduce the ability to benefit from falling prices.
Typical business gas costs by usage band
Business gas costs vary widely depending on consumption, location, contract terms and market conditions, but usage bands can provide helpful benchmarks.
Small businesses such as offices, salons and cafés often consume between 5,000 and 15,000 kWh per year. Medium-sized businesses, including restaurants and retail premises, typically fall between 15,000 and 50,000 kWh. Larger sites such as hotels, care homes and manufacturing facilities may exceed 50,000 kWh annually.
As usage increases, unit rates often decrease, but total costs rise due to higher consumption. Standing charges, network fees and levies still play a role, making it important to compare quotes based on total annual cost rather than unit rate alone.
How to prepare before comparing gas quotes
Having the right information ready makes business gas comparison faster and more accurate.
A recent gas bill will usually show annual consumption in kilowatt-hours, the MPRN (Meter Point Reference Number), current unit rates and standing charges. Knowing the contract end date is particularly important, as it affects which deals are available.
For multi-site businesses, details for each meter help ensure quotes reflect actual usage rather than estimates. Accurate information leads to more reliable comparisons and avoids pricing surprises later.
Common mistakes when comparing business gas
- One of the most common mistakes is focusing solely on the unit rate while ignoring standing charges and contract length. A lower unit price does not always mean a cheaper deal overall.
- Many businesses also remain on deemed or out-of-contract tariffs for longer than necessary, often without realising how expensive they are. Auto-renewing contracts without checking the market can also lock businesses into uncompetitive rates.
- Another common issue is comparing too late. Leaving comparison until after a contract ends reduces choice and often leads to higher costs.
When to compare business gas
The best time to compare business gas prices is usually three to six months before a contract ends. Most suppliers allow new contracts to be agreed in advance, helping businesses avoid rolling onto deemed rates.
Wholesale gas prices fluctuate throughout the year, influenced by seasonal demand and global market conditions. While it is difficult to predict the lowest point, comparing early gives businesses more control and choice.
Regular comparison ensures businesses remain on competitive tariffs rather than reacting after prices increase.
Benefits of switching business gas suppliers
Switching business gas supplier can deliver immediate and long-term benefits beyond simple cost savings.
A new contract may offer lower rates, improved contract terms or better billing transparency. Fixed contracts can help with cashflow planning, while switching away from deemed rates often results in significant savings.
Some suppliers also offer low-carbon or green gas options, supporting sustainability goals without major cost increases.
Green and low-carbon gas options
Businesses increasingly consider environmental impact when choosing gas tariffs. While fully renewable gas is limited, some suppliers offer biomethane-backed tariffs or carbon-offset gas options.
These tariffs typically support renewable gas production or offset emissions through certified schemes. Costs may be slightly higher than standard gas tariffs, but the difference has narrowed in recent years.
For businesses with ESG or sustainability reporting requirements, choosing a low-carbon gas option can support wider environmental commitments.
What happens after you choose a gas tariff?
Once a business selects a gas tariff, the switching process is managed by the new supplier. There is no interruption to gas supply, as the physical infrastructure remains unchanged.
The new supplier handles contract administration and coordinates with the existing supplier. The business receives a final bill from the old supplier and begins billing under the new contract once it goes live.
Switching typically completes within a few weeks, depending on contract start dates and meter details.
Related guides and next steps
Businesses comparing gas often benefit from reviewing their wider energy strategy. Related guides explain business electricity comparison, VAT and levies on energy bills, and practical ways to reduce gas usage.
Comparing gas and electricity together can provide a clearer picture of total energy costs and highlight further savings opportunities.
FAQ – Business gas costs
How much can my business save by switching gas suppliers?
Businesses can save up to 25% by switching to a more competitive tariff. For example, a medium-sized business using 50,000 kWh of gas per year could save as much as £500 annually, depending on the rates offered by different suppliers.
Will switching suppliers affect my gas supply?
No, switching gas suppliers does not affect your gas supply. The process is seamless, and you won’t experience any interruptions. The only difference will be the company that bills you for your gas usage.
How long does it take to switch gas suppliers?
Switching typically takes 2-4 weeks, depending on the terms of your current contract and the new supplier. You’ll receive notifications at each step of the process to ensure everything proceeds smoothly.
Can I switch suppliers if I’m in a fixed-term contract?
If you’re in a fixed-term contract, early exit fees may apply, usually ranging between £50 and £300. However, you can still compare tariffs and set up a switch for when your current contract ends to ensure you move to a better deal.
Are there green gas tariffs for businesses?
Yes, several suppliers offer renewable or carbon-neutral gas tariffs, usually at competitive rates. These options are ideal for businesses that are looking to reduce their carbon footprint and contribute to a more sustainable energy market.
What are standing charges in business gas tariffs?
The standing charge is a daily fee paid to cover the maintenance and delivery of gas to your premises. Standing charges for business gas typically range between 10-80 pence per day, depending on the supplier and contract terms.
What is the average standing charge for business gas?
The average standing charge for business gas ranges from 10 to 80 pence per day, depending on your supplier and contract. This charge covers the fixed cost of delivering gas to your business, regardless of your consumption.
Can I negotiate business gas prices with suppliers?
Yes, many suppliers are open to negotiating rates, particularly for larger businesses with high energy consumption. Negotiating can help you secure lower rates, flexible terms, or added benefits, such as carbon offsetting or renewable gas options.
Do business gas prices include VAT?
Yes, business gas prices typically include 20% VAT. However, if your business uses less than 145 kWh of gas per day, you may qualify for a reduced VAT rate of 5%, which can significantly reduce your gas bills.
What is the difference between fixed and variable gas rates?
Fixed rates lock in your price per kWh for the contract duration, offering price stability. Variable rates fluctuate with market conditions, which can lead to savings when prices drop, but also higher costs if prices rise. Fixed rates are often preferred for budgeting certainty.
What happens if I don’t switch gas suppliers when my contract ends?
If you don’t switch when your contract ends, you may be automatically moved onto a standard or ‘out-of-contract’ tariff, which is usually much more expensive. These rates can be up to 80% higher than the rates available through comparison.
Can I get a gas contract that includes renewable gas?
Yes, some suppliers offer contracts that include renewable or carbon-neutral gas. While historically these contracts were more expensive, today many renewable gas tariffs are competitively priced and offer a way to make your business more sustainable.
How often should I review my business gas contract?
It’s a good practice to review your gas contract 6 months before it ends. This gives you plenty of time to compare new tariffs, avoid automatic renewal on a higher rate, and lock in a competitive price for your next contract.
Does business gas usage affect the environment?
Yes, gas usage can contribute to carbon emissions. However, many suppliers now offer green gas options, which are either renewable or offset through environmental projects. Switching to a greener tariff can help reduce your business’s environmental impact.
Can I switch gas suppliers if my business moves premises?
Yes, if your business relocates, you can switch suppliers to a new contract at your new premises. In many cases, moving provides an opportunity to review your energy needs and potentially secure a better deal at the new location.