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Everything you need to know about business gas

Overspending on energy is an unnecessary waste of money, but if your business hasn’t switched supplier recently, there’s every chance you’re paying too much for your business gas. The trouble is, switching business energy isn’t quite as simple as switching household energy – there’s no dual fuel option, for a start, meaning you’ll have to run separate quotes for both gas and electricity.

To make the whole process a whole lot simpler, this guide will explain everything you need to know about switching business gas.

Why switch to a new business gas deal?

Commercial gas tariffs don’t work in quite the same way as domestic deals – as well as there being no dual fuel option, there aren’t any ready-made tariffs to choose from either, which means the deal you eventually sign up to will have been designed specifically to suit the needs of your business. These deals can last between one and five years, unlike domestic deals, which only usually last for 12 months.

And while domestic energy quotes are based largely upon a household’s annual energy usage, the business gas rates you’re offered will vary according to the type of business you run, the size of your workplace, the number of sites you own, and an estimated usage over the length of the contract.

If your business is spread out across a number of sites, or in one industrial-sized complex, you might need to have multiple meters installed. Call 0800 170 1921 to talk to our business energy experts about multi-site metering.

What types of business gas tariffs will you be offered?

When comparing gas quotes, most suppliers will offer both fixed rate and flexible tariffs, and leave it to you to decide which is best for your business.

If you opt for a fixed-rate deal, the unit rate (measured in kWh) will won’t change for the duration of your contract. This can help with your monthly budgeting, but be aware your bills will fluctuate along with your energy use.

Signing up for a variable-rate contract means your bills could go up and down, regardless of whether you’re using more or less energy, as the unit rate is linked to market activity and fluctuates accordingly. If wholesale prices increase, so will your gas bills, but if they drop, the rate you pay will also reduce to reflect this, so there is an element of risk involved.

Another difference between the two types of tariff is that while fixed rate deals don’t allow you to switch until your contract nears its end date – known as the ‘renewal window’, you can find out more here - flexible tariffs usually allow you to switch supplier with just 30-days’ notice.

Should you pay VAT on your business gas bills?

It’s most likely your business will be charged the standard rate of 20% VAT for its gas, but discounts are available for some businesses, as well as certain not-for-profit and charities.

You might also be in line for a reduced rate of just 5% if you use less than 4,397kWh per month, so it’s worth checking your bill for your usage figures.

To find out if your business is eligible for a VAT reduction, speak to your supplier and ask for a VAT declaration form.

How to switch business gas supplier

Comparing cheap gas prices from a number of suppliers is the only way you can be sure your business isn’t overpaying for its supply. This can be very time-consuming though, as you’ll need to get separate, bespoke quotes from each supplier, meaning you’ll have to repeat your details to each and every suppler you call.

It doesn’t have to be that way though – one call to MoneySuperMarket’s business energy experts is all it takes to compare quotes from a panel of trusted suppliers and find the best business gas quote to suit your needs and budget.

Give us a call to 0800 088 6986, or leave a few details in the box at the top of the page and we’ll give you a call back.

If you can have the following information to hand, we can return more accurate quotes and speed up the switching process:

  • The name of your current gas supplier
  • The name of your tariff, and its end date
  • Your supply type
  • How much gas your business uses

Once we’ve run the quote, just tell us which deal suits you best and we’ll set up your new gas contract so you can start saving as soon as possible.

There are some circumstances in which your switch might not be accepted, for instance, if your business has a poor credit score, or if you’re in debt with your current supplier, so bear this in mind before you get in touch.

The whole switch should the take no longer than six weeks, though this can be affected by the length of time you have on your current deal, or if there are any other problems along the way, but there should be no disruption to your supply at any point in the process – the same pipes and equipment deliver the gas to your premises, it’s just the supplier that changes.

Call our energy experts now on 0800 088 6986 to run a commercial gas comparison and switch to a better deal.


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