As a business owner, one of your biggest items of expenditure could well be your gas bill. If you’ve been with your gas supplier for a number of years, it is worth looking into switching to a different firm as finding a better deal could save you a significant amount of money.
When to switch
Business gas is supplied under contract and, in most cases, the best time to switch is when your contract comes to an end.
Ideally, you should use the one-to-six month ‘renewal’ window given before the end of your contract to find another deal.
You can enter the relevant details into our comparison tool to see what’s better on the market.
What to consider when switching
As a business gas customer, you can have either a fixed or variable rate tariff. The former means you pay a set rate for each unit of gas you use, typically over a one to five-year term.
With a variable rate tariff, the price you pay will fluctuate with the movement of the wholesale energy market. You could end up paying out more than what you would on a fixed rate, or less, depending on wholesale energy prices.
If you compare fixed and variable prices by running a comparison, you can see the margin between the two (the fixed rate will likely be lower). You can then see how far the variable rate would need to fall to match it.
As margins are generally quite significant, a fixed rate deal could prove the more competitive option, particularly over shorter-term contracts.
Standing charge
This flat fee is charged for the provision of gas supply, and the cost of the gas you use is added on top. Some firms favour a relatively high standing charge with a lower rate per unit of gas, some operate the other way around.
When you run a quote you’ll be able to see how your typical consumption affects the quotes your given by each type of supplier.
Dual fuel
Combined gas and electricity tariffs are not available for businesses like they are for domestic customers, but you can still choose the same provider for both – and doing so may earn you a discount, especially if you are a major consumer of one or both types of fuel.
Green energy
More businesses are choosing ethical options to better serve the environment. Some suppliers offer tariffs where they match the energy you use with what they feed into to the National Grid in renewable energy.
Exit fees
Watch for whether you will have to pay a penalty for switching before your contract ends. If that is the case, it’s may not be worth the cost to end it early. You’ll be told by your supplier when your contract is coming to an end, and at this point you can start hunting for a cheaper deal.
Use your smart meter
A smart meter is a handy device to find out how much energy your business currently uses from information sent real time.
With accurate readings you can work out when gas is used the most throughout the day and pick a tariff that offers lower rates at your peak periods, such as in the evenings or at weekends.
If you haven’t been offered a smart meter yet under the government’s roll-out scheme, you should be made an offer at some point before 2025.