Keeping on top of outgoings is one of the most time consuming yet essential tasks as a commercial business owner. It’s important to cut your costs wherever possible in order to free up capital. When it comes to your commercial gas supplier and your bill, this is no different.
There are a wide variety of tariffs available from different commercial gas suppliers. We’re here to explore these in relation to rates and costs for small to large businesses.
Small to large businesses costs
There are a variety of factors that decide your commercial gas rates. One main factor is the business bracket that you fall under. If you earn over £300,000 per year, you are classed as a large business. You can naturally expect to pay a higher gas rate due to the more complex requirements of a large business. You can expect to be charged around £3,139 per year, but it also depends on your gas consumption (measured in kWh). The £3,139 figure relates to a consumption rate of 75,000 kWh.
Small and medium businesses that earn under £300,000 a year (also known as SME’s) will pay less relating to their consumption. 15,000 kWh – 35,000 kWh tends to be around £706 – £1,551 per year.
When your current gas bill is approaching the end of its deal, there is a period of time (usually between 6 months and a year) where you can negotiate your new gas bill agreement with suppliers that will begin once the current one runs out. During this period, your current commercial gas supplier will likely be in touch with a contract renewal offer.
An average of just 33% of small to medium businesses choose to change their suppliers during the renewal window. This means that a lot of owners could have missed out on saving on their business costs. It might initially seem like the right choice to stay with your commercial gas supplier for the sake of ease. But there is a good chance that you could really benefit from assessing the market during each renewal window. Current supplier rates are rarely competitive if you have been with them for a while. We recommend checking commercial gas rates twice a year to stay up to date with the market.
Rates and tariffs
It’s important to assess your own personal situation to help identify where you can save money. When it comes to gas tariffs and their rates, there are some options which are better than others. The two most applied tariffs are a fixed rate tariff and a deemed rate tariff.
- Fixed rate tariffs – This is likely the best tariff for your business. You pre-agree your rate and pay it over the full length of your contract. If you are not on a fixed rate tariff, we advise switching to one as soon as possible.
- Deemed rate tariffs – You will likely end up in a deemed rate tariff if you do not make a new deal on your gas bill during the renewal period. This is a monthly rolling contract in which you pay inflated rates. The good news is that if you are in one of these contracts, you can switch at a month’s notice.
Unit costs and standing charges
Other cost related factors are your business location, premises size, your consumption levels (measured in kWh) and your type of gas meter.
This all falls under two costs that make up your overall gas bill. The unit cost is the first, which is the measurement of gas used in kWh. The second cost is the standing charge which is basically a maintenance charge for the service of providing your business with gas.
Compare commercial gas suppliers with Bright Utilities
Here at Bright Utilities, we have direct access to the top suppliers in the country. We are confident that we can pair you with the cheapest commercial gas supplier possible. Start a quote today, and one of our dedicated team members will be in touch to begin comparing the best gas deals on the market.
The world of commercial gas is constantly evolving. We will take a look at what you are currently paying, and aim to save you up to 45% on it. Consider us as an additional member of your team who has your financial reductions in our best interests. Compare commercial gas suppliers today! Learn more about how to save money on your gas bill here