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Last updated August 2026.
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How business gas pricing works
Business gas isn’t sold under a price cap. Every quote is bespoke, built around your consumption, your credit profile and how long you commit for. A UK business can switch supplier at any time, and a new contract can go live in as little as five working days, depending on your notice period and contract end date. A fixed-rate contract gives you budget certainty; a flexible contract can save more if you can absorb wholesale risk. Deemed rates, the ones you roll onto when you have no contract in place, are usually the most expensive thing to leave running.
Reviewing electricity at the same time? Our business electricity page works the same way, and most businesses compare both together.
Business gas rates from our supplier panel
As of June 2026, all-in business gas rates on our supplier panel are an average across several UK regions, running from about 4.9p/kWh for a high-volume site to about 5.4p/kWh for a microbusiness, before VAT and the Climate Change Levy.
| Business size (annual gas use) | Unit rate from | Average all-in cost (3-year fix)* |
|---|---|---|
| Microbusiness, under 25,000 kWh | 4.66p/kWh | about 5.4p/kWh |
| Small to medium, 25,000–75,000 kWh | 3.84p/kWh | about 5.3p/kWh |
| Larger, 75,000–150,000 kWh | 3.42p/kWh | about 5.1p/kWh |
| High-volume, 150,000–250,000 kWh | 3.42p/kWh | about 4.9p/kWh |
Every quote splits into a unit rate per kWh and a daily standing charge, which varies between suppliers. The two trade off, so a low unit rate often comes with a higher standing charge, and the lowest unit rate rarely gives the lowest annual cost bill once you add it up. That is why the figures above are all-in averages: they blend both at a typical usage for each band on a three-year fix. One-year fixes generally run a little higher.
*All-in figures are a guide rather than a quote. Your region, annual usage, meter type, credit profile and the day you sign all move the final price. For your site’s actual rate, get your business gas quotes.
Business gas runs through the same pipes as domestic gas, but commercially it works on a completely different set of rules. There’s no Ofgem price cap on commercial energy. Prices aren’t published on a website for you to browse. Every quote is built individually based on your consumption, your credit profile, and where your premises sit on the network. Two businesses on the same street can be paying different rates for the same gas, and that’s normal.
That’s what makes comparing suppliers properly so valuable. Without it, you’re accepting whatever your current supplier offers and hoping for the best. This page covers how business gas pricing works, what the different contract types mean, how to read your bill, and what to look out for when switching.
Compare business gas contract types
Business gas contracts fall into four main types. Each one suits a different business profile and risk appetite.
| Contract type | How pricing works | Best for | Watch out for |
|---|---|---|---|
| Fixed | Unit rate locked for the full term, 12 to 60 months | Businesses that want budget certainty | Fixing on a bad day means paying above market for years |
| Variable or pass-through | Wholesale cost passed through plus a margin | Businesses that can tolerate price movement | Bills can swing month to month with market moves |
| Flexible | You buy wholesale in tranches across the term | Multi-site portfolios above 500 MWh per year | Needs active management or a broker watching the market |
| Deemed or out-of-contract | Supplier default tariff after contract end | No one. A default, not a choice | Usually the most expensive option by a wide margin |
Most UK SMEs default to a fixed contract of 24 to 36 months. If you have predictable consumption and want one line on the P and L that does not move, a fixed deal signed in a quiet market period is hard to beat. Larger sites and multi-site portfolios should ask about flexible purchasing because it trades effort for potential savings.
Need a new gas meter or a brand-new gas connection rather than to compare suppliers? See our business meter installation and new connections hub.
What sits behind a gas bill
The arithmetic on a business gas bill is more involved than electricity. Your meter records cubic metres; those are converted to kWh by applying a volume correction factor and a calorific value before anything is priced. The Climate Change Levy is then added as a separate per-kWh charge on non-domestic supply, and VAT sits on the subtotal at either 5 or 20 per cent. Because the conversion chain has more moving parts, a habit of bill validation tends to catch slightly more on gas bills than on electricity, particularly where calorific value assumptions or estimated reads have drifted. If nobody has done that for a while, our bill audit service goes through it line by line.
Two more states worth knowing about: once a fixed contract has ended without a renewal, the supply sits on an out-of-contract rate, usually a meaningful step up from the contracted unit rate. And where the supplier has not had an actual meter reading recently, the bill is built on an estimated read, which can drift several months before the catch-up arrives.
The size of the supply matters too. Each meter is assigned an Annual Quantity (AQ) which decides what class of gas supply you are on. The largest sites cross into daily metered (DM) gas settlement, where actual daily consumption is measured and billed rather than estimated from the AQ.
Behind the scenes, every UK gas meter has a recorded calorific value applied to it, which converts the cubic metres your meter records into the kWh you are billed for. The whole industry data web (AQ, MPRN ownership, change of supplier) is run by Xoserve, the central data services provider for UK gas. For older imperial bills, energy may still be referenced in therms rather than kWh.
Volume to energy on the bill is handled by the gas conversion factor, a single working multiplier (around 11.2 kWh/m³) that bundles volume correction and calorific value together.
Like every UK business bill, gas combines a unit rate per kWh with a daily standing charge. The Meter Serial Number (MSN) identifies each individual gas meter under the broader supply-point identifier (MPRN).
Behind the scenes, every gas supply in Great Britain sits inside one of thirteen Local Distribution Zones, known as LDZs. The LDZ you’re in shapes transportation costs, which is why two similar businesses on opposite sides of the country can see different gas rates for the same volume.
Every gas supply point in Great Britain has a unique identifier called an MPRN. It’s the gas equivalent of the electricity MPAN, between 6 and 10 digits, and managed centrally by Xoserve. Suppliers need it to quote, switch, and bill, which is why it’s one of the first things you’ll be asked for at renewal.
On the contract side, the choice between a fixed deal and a variable-rate contract shapes how much exposure you have to wholesale gas market swings. For most UK SMEs, a 12 or 24-month fixed contract removes the budgeting headache that comes with a moving unit rate.
If you want to understand what sits behind those swings, the wholesale price is set at the National Balancing Point, while a licensed gas shipper arranges to move your gas across the network to your meter.
What is business gas?
Business gas is a commercial supply contract for non-domestic premises, priced per site with no price cap and no published tariffs. Same pipes and same gas as a home, on completely different commercial terms.
Each supply point has an MPRN and an assigned annual quantity that between them decide how you’re priced. For the full grounding before you compare, start with our plain-English guide to what business gas is.
How does business gas pricing work for factories and other high-volume sites?
Factories are priced on their consumption profile, not a rate card. Above roughly 150,000 kWh a year every quote is bespoke, the site’s Annual Quantity decides its supply class, and the largest users move onto daily metered settlement where actual gas use is billed day by day.
A steady, predictable load earns a sharper rate because the site is cheaper to serve. Portfolios above 500 MWh a year should be asking about flexible purchasing rather than a single fix. Our guide to business energy procurement covers those structures in full. There’s more sector detail on our business gas for manufacturing and industrial page.
Real Business Gas Savings Example
We recently helped Hillside Golf Club secure more competitive energy rates through a structured business gas comparison. By reviewing their contract and comparing suppliers, we arranged a long-term fixed agreement that improved cost certainty and reduced exposure to market changes. Read this business gas case study to see how it works in practice.
How switching business gas works with Clearsight
Get a business gas quote
Compare business gas suppliers to secure the right deal for your business.
What actually affects your business gas price
Your unit rate isn’t the only number that matters. Your total cost depends on several things most businesses never check.
Your business gas price is built from four components: the unit rate (pence per kWh of gas used), a daily standing charge for being connected to the network, Climate Change Levy at 0.801p per kWh (April 2026), and VAT at 20% (or 5% if you qualify as a low-usage business or charity).
The unit rate itself depends on your annual consumption, your location on the gas network, your business credit profile, and how the wholesale market is priced when you request a quote. That’s why two businesses next door to each other can get quoted different rates on the same day.
A low headline unit rate with a high standing charge can end up costing more than a slightly higher rate with a lower daily fee. Comparing the total annual cost, not just the per-kWh number, is where the real saving sits.
Switching business gas supplier
Switching business gas supplier is more straightforward than most businesses expect. Once you’ve signed a contract with a new supplier, they handle the transfer with your current supplier on your behalf. There’s no service interruption, no engineer visit, and no change to the physical gas supply.
The transfer can complete in as little as five working days from contract signing, though your current contract’s notice period sets the real timeline. Your meter readings stay with you, your MPRN doesn’t change, and the only material difference is who sends the bill. The wholesale gas reaching your building comes through the same pipes either way.
One critical timing point: you have to give written notice to your current supplier within their termination window. That’s usually 30 to 180 days before contract end, depending on the supplier. Miss that window and you can be rolled onto out-of-contract or deemed rates, which are typically 50 to 80% above a freshly negotiated rate. The new supplier can usually help with the notice, but the responsibility sits with the customer.
Related guides: how to switch business gas supplier and Hillside Golf Club’s renewal.
What drives wholesale business gas prices
Wholesale gas prices in the UK reflect the cost of physical gas trading on the National Balancing Point (NBP) market, the UK’s virtual trading hub for natural gas. Unlike your final unit rate, the wholesale price moves daily, sometimes hourly, based on a mix of fundamental and short-term factors.
What moves the wholesale price:
LNG demand. Global liquefied natural gas demand, especially from Asia, sets the floor for what the UK pays for imports.
Norwegian pipeline flows. Roughly a third of the UK’s gas arrives from Norway by pipeline, the single largest import source. Maintenance outages or flow restrictions move prices fast.
UK and EU storage levels. Going into winter, storage fill levels are a leading indicator of price stability.
Weather forecasts. Cold snaps drive demand spikes, especially when they coincide with low wind generation across the wider grid.
Geopolitics. Events affecting major exporters (Russia, Norway, Qatar, the US) can shift the curve overnight.
Your final unit rate isn’t the wholesale price alone. It’s wholesale plus non-commodity costs plus supplier margin. But wholesale movement is the single biggest driver of how much your renewal quote varies from one week to the next. Timing the fix on a softer wholesale curve is one of the clearest ways a broker adds value.
Related guides: why business gas prices change and how global conflict impacts UK wholesale gas prices.
Business gas guides
These are written for business owners rather than energy professionals. Start with the basics if commercial gas is new to you, or go straight to the section that matches the question you’re trying to answer.
How business gas works and why prices move
New in October 2026: Business gas contracts explained covers every contract type, the terms to check and the rules that protect you; Business gas contract ending walks through the renewal letter, notice and what happens if you do nothing.
What is business gas? and How business gas supply works in the UK cover the basics. How business gas prices are calculated breaks a quote into its parts, Why business gas prices change explains the market side, and Global conflict and UK wholesale gas prices looks at what’s been driving it lately.
Reading a gas bill
How business gas bills are calculated walks through a bill line by line. The individual parts have their own explainers: standing charges, unit rates, how gas is converted to kWh, calorific value and your MPRN.
Contract types and what happens when one ends
Fixed rate business gas contracts and Flexible business gas contracts explain the two main options. When to renew a business gas contract covers timing, Business gas contracts and cooling-off periods covers your rights once you’ve signed, and Out-of-contract gas rates and Deemed gas contracts explain what you pay when there’s no agreement in place.
Getting quotes and switching
How to get the best business gas quotes covers what to have ready and how to compare like for like, and How to switch business gas supplier walks through the process from start to finish.
Meters and connections
How business gas meters work and How to read your business gas meter cover the meter itself. Business gas meter installation and New business gas connection cover new premises, and Independent gas transporters explains why some sites sit on a private network.
Guides by sector
Gas use varies a lot by trade, so we’ve written separate guides for pubs and restaurants, hotels, retail and supermarkets, corner shops, offices, care homes, healthcare, schools, manufacturing, logistics and warehousing, garages and workshops, farms, leisure and fitness, golf clubs, sports grounds and charities. The full list is on our sectors page.
Business gas by location
The rules for buying gas are national, but the network that carries it and the transportation charges inside your unit rate are regional. Each location page covers who runs the pipes, what is local about the bill and how a comparison works there.
Business gas questions
How are business gas prices calculated?
Your bill is made up of a unit rate (pence per kWh), a daily standing charge, Climate Change Levy (0.801p/kWh – April 2026), and VAT at 20%. The unit rate itself depends on your annual consumption, your business credit score, your meter type, your location, and wholesale gas prices on the day you request a quote.
What are deemed rates and out-of-contract rates?
If your business gas contract expires and you don’t renew, your supplier moves you onto out-of-contract rates, which are typically 50 to 80% higher than a negotiated deal. Deemed rates apply when there’s never been a contract on your meter. Both are expensive and avoidable if you keep track of your contract end date.
How long does it take to switch business gas supplier?
Switching can complete in as little as five working days once your current contract allows. Your gas supply isn’t interrupted during the process. The gas keeps flowing through the same network. Only the billing supplier changes. You’ll need your MPRN, a recent bill or annual consumption figure, and your contract end date to get started.
How do I switch business gas supplier?
Switching business gas supplier involves agreeing a new contract and allowing the new supplier to take over billing.
The physical gas supply remains the same. Read how to switch business gas supplier for a full guide.
How do I compare business gas contract rates in the UK?
Compare on total annual cost, not the headline unit rate. Take your annual consumption in kWh, then weigh each quote’s unit rate and daily standing charge together, plus contract length and exit terms. Because business gas isn’t capped or published, the only reliable comparison is quote against quote across multiple suppliers for your actual usage.
What are average business gas rates in June 2026?
As of June 2026, average all-in business gas rates on our supplier panel, taken across several UK regions, are about 5.4p/kWh for a microbusiness (under 25,000 kWh a year), about 5.3p/kWh for a small to medium business (25,000 to 75,000 kWh), about 5.1p/kWh for a larger business (75,000 to 150,000 kWh) and about 4.9p/kWh for a high-volume site (150,000 to 250,000 kWh), all on a three-year fix and before VAT and the Climate Change Levy. These are averages rather than a single lowest-cost quote. Your actual rate depends on your region, annual usage, meter type, credit profile and the day you sign.
What should a business gas contract include?
Four numbers and one date. The unit rate, the daily standing charge, the contract length, any exit or buyout terms, and your termination notice window. That last one matters most, because missing it can roll you onto an out-of-contract rate at a painful markup.
Why use a specialist business gas supplier rather than a domestic one?
You don’t have the choice. Non-domestic premises have to be on a non-domestic contract, and those work differently. No price cap, no published tariff, no cooling-off period, VAT at 20 percent for most premises and the Climate Change Levy on top. In return you can negotiate the rate, fix for up to five years and, for larger sites, buy in tranches.
Who are the main business gas suppliers in the UK?
The household names, British Gas, EDF, E.ON, SSE and ScottishPower, all supply businesses, and alongside them are suppliers that only serve the business market, such as Corona Energy, Crown Gas & Power, Yü Energy, SEFE Energy and TotalEnergies. Which one suits you depends on your consumption, meter type and credit profile. We tender across the suppliers on our panel and show you the comparison.
My business gas contract is ending soon, what should I do?
Start by finding your contract end date and how much notice your supplier needs. Microbusinesses usually get a renewal letter around 60 days before the end, showing current prices, new prices and annual consumption. That’s your prompt to compare suitable contracts rather than accept the renewal offer or slide onto out-of-contract rates. Most suppliers let you agree a new deal months ahead. Follow this question through →
Should I choose a fixed or flexible business gas contract?
A fixed contract locks your unit rate and standing charge for the term, giving budget certainty. A flexible contract buys gas in tranches over time, so your price follows the market, which suits larger users who can manage risk. Most small and medium businesses choose fixed. The right option depends on usage, risk appetite and internal resource. Follow this question through →
What is the Climate Change Levy on my gas bill?
The Climate Change Levy (CCL) is a UK environmental tax on business energy. From 1 April 2026 the main rate for natural gas is 0.801p per kWh. It appears as a separate line on your bill and is charged in addition to the unit rate. Domestic-use and some charity supplies are exempt. Follow this question through →
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