Gas vs Electric | How Energy Sources Differ in Business Supply Contexts
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Business energy suppliers might offer various sources for supply, but the two most commonly seen across all suppliers will be gas and electricity. These are the titans of energy supply, still used by basically every business in the country. But when comparing gas vs electric power, what are the primary differences and how do the two energy sources compare in today’s context?
This blog will offer a simple gas and electric comparison, touching on distinctions in cost, application, delivery and more.
Source, delivery & application
Natural gas is a fossil fuel extracted from underground reservoirs, transported through underground pipe networks. It’s used primarily for heating, boiling water and cooking. Its underground supply system means it’s less related to outages.
Electricity is generated from fossil fuels, nuclear power and even renewable sources, transmitted via overhead power lines and underground cables. It can be used for powering basically everything in a business context, including electronic power, lighting, refrigeration and even heating/cooling, but is arguably more susceptible to weather-related complications.
Electric boiler vs gas boiler
When it comes to applications, heating water is one of the most important things to keep in mind, with gas and electric boilers each having their own benefits and drawbacks. Looking at how boilers of the different formats compare actually acts as a good microcosm of the primary differences between the two energy sources in general.
| Feature | Electric Boilers | Gas Boilers |
|---|---|---|
| Efficiency | More efficient | Slightly lower cost |
| Running costs | Higher | Lower |
| Power capacity | Can struggle with high demand | More powerful generally |
| Space usage | Compact, space saving | Generally larger |
| Noise level | Quiet | Can be noisy |
How gas and electric quotes differ
Getting a business gas quote or electricity quote will differ significantly due to the cost per unit (pence per kWh) differences between the two sources.
- Natural gas currently sits at an average of 6.33p per kWh
- Electricity is priced at around 25.73p per kWh
However, while electricity is priced significantly higher per unit, it’s also worth considering that its efficiency means that it’s not proportionally as expensive per day as it is per unit when compared to gas. It’s also worth remembering that most electricity in the UK is powered by fossil fuels (natural gas), so gas prices directly influence electricity prices.
These aspects, along with the nature of your business’s usage rates will define your energy quotes.
Gas vs electric in your business
Most businesses still require both business gas and electricity, but it can be hard to know exactly the degree at which both are required and for what if you’re not a seasoned veteran in handling energy. If this is the case, contact us today. We can guide you to ensure that you get the best energy quote for your requirements.
Visit our blog for more insights into the energy industry.
