What Is Business Gas?
Business gas is mains gas supplied to commercial premises for heating, hot water, cooking and industrial processes. Restaurants, hotels, care homes, factories and offices with gas heating are among the biggest users.
Unlike household gas, business gas has no Ofgem price cap. You sign a contract with a supplier, which sets your rate based on your usage, location and credit history. Most business contracts also have no cooling-off period, so it pays to compare before you sign.
Business Gas Rates Comparison: What Makes Up Your Price
Your business gas bill is made up of five parts. Compare all of them, not just the headline rate.
- Unit rate: What you pay for each kWh of gas you use, in pence per kWh. It matters most for high-usage sites such as restaurants and factories.
- Standing charge: A fixed daily charge for your supply, whatever you use. It matters most for low-usage sites such as small offices.
- Annual quantity (AQ): Your estimated yearly gas use, calculated from your past meter readings. Suppliers base your quote on it, so check that it's accurate before you compare.
- Climate Change Levy (CCL): A government tax on business energy. From 1 April 2026, the main rate for gas is 0.801p per kWh. Gas for domestic use or charity non-business use doesn't pay it.
- VAT: Most businesses pay 20%. You pay 5% if you use 145 kWh of gas a day or less on average, or if the gas is for domestic or charity non-business use.
Each supplier prices these parts differently, which is why commercial gas prices vary so much between quotes.
Business Gas Tariffs Explained
When you compare business gas tariffs, you'll usually see these options:
Your unit rate and standing charge stay the same for the whole term, usually one to three years. This makes budgeting easier.
Suited to large users. You buy gas in blocks on the wholesale market during the contract, which can lower costs but carries more risk.
Part of your gas comes from biomethane, or the supplier offsets its carbon emissions. Ask which method is used.
These apply when you move into premises without choosing a supplier, or your contract ends without a renewal. They are usually the most expensive rates, and you can normally switch away without a fee or notice period.
Business Gas for Every Size of Business
- Micro businesses: You count as a micro business if you use up to 293,000 kWh of gas a year, or have fewer than 10 employees and a turnover or balance sheet of up to £2 million. You get extra protections, including a 12-month cap on rollover contracts and a reminder from your supplier before your contract ends.
- Small and medium businesses: Most SMEs choose a fixed-rate contract from a supplier with strong small business service, so their costs stay predictable.
- Large and multi-site businesses: You can combine sites on one contract and one bill, and choose flexible purchasing. Larger sites often have automatic meter reading (AMR) meters, which send readings so you're billed on actual use.
How to Get Business Gas Quotes and Switch in 4 Steps
- 1Share your detailsTell us your postcode, current supplier and contract end date, and send a recent bill if you have one.
- 2Compare quotesWe compare business gas suppliers and show you unit rates, standing charges and contract lengths side by side.
- 3Choose your tariffPick the deal that suits your business. We send the contract terms in writing before you agree.
- 4We handle the switchYour new supplier arranges the move, and your gas keeps flowing throughout.
Gas Only or Dual Fuel?
If you use gas and electricity, you can take both from one supplier on a dual fuel deal, or use a different supplier for each. One bill is simpler, but separate suppliers are sometimes cheaper, so we quote both ways. Need electricity too?
Compare business electricity pricesTo see which suppliers we rate, read our guide to the best business energy suppliers in the UK.
Why Compare Business Gas With Divine Tech and Solutions
- Free to use: There's no fee for comparing or switching. We're paid by the supplier you choose.
- Quotes on your real usage: We price your quote on your actual annual gas use, not an estimate.
- Help with every step: From the first quote to the switch, one team handles your gas supply.
Ready to Compare Business Gas Prices?
Find out what your business could be paying. You can request your business gas quotes online in a few minutes, with no obligation to switch.
Frequently Asked Questions
1Who is the cheapest business gas supplier?
The cheapest supplier changes often, because business gas prices follow the wholesale market. A free comparison shows which supplier is cheapest for you today.
2How long does it take to switch business gas supplier?
Once you agree a new contract, the switch usually takes a few working days to a few weeks, depending on when your current contract ends.
3When can I switch business gas supplier?
You can switch at the end of your contract, and many suppliers let you agree a new deal months before then. Check your contract's notice period so you don't miss the window.
4Can I get business gas with no standing charge?
Some suppliers offer business gas tariffs with no standing charge, or a low one, usually in exchange for a higher unit rate. They can suit low-usage or seasonal businesses, so compare the total annual cost both ways.
5Do I need a new gas meter to switch supplier?
No. You usually keep your existing gas meter when you switch, and no engineer visit is needed. Send a meter reading to both suppliers on the switch date.
Divine Tech and Solutions Ltd is an independent broker, not an energy supplier. Registered in England & Wales, Company No. 15768634.