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Incorporated in 2002 we have become one of the longest established and well respected UK independent businesses energy suppliers.

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12 Oct

Business Gas Prices Explained

by Simon Thompson
 

If you are looking for the cheapest business gas prices then having an understanding of business gas prices, plans and contracts is important, so that you know you are getting the best deal.

At D-ENERGi we know that no two businesses are the same, we’ve been in the business for over 18 years after all.

The size of your business is really important when you want to compare business gas prices, as it can be the difference between paying 4.3p a unit to 5p a unit, and 19p and 25p a day standing charges.

Business Size

Business gas rates are usually based on four sizes of business:

Micro – less than 10 employees and turnover less than £2 million

Small Business – Less than 50 employees and turnover less than £10 million

Medium Business – Less than 250 employees and turnover less than £36

Large Business – 250 employees or more

Different types of tariffs

The gas market can be quite volatile, which means business gas prices can change quite a lot in a short space of time, and this can have an influence on the type of pricing plan or contract you opt for:

• A fixed rate tariff means your price will be locked in place for three years – the benefit of which is that you won’t pay any more if the price of gas increases, however, you also won’t be able to pay less if the price of gas drops

• If you used a lot of gas in your business you may want to think about a flexible tariff, as this lets you pay upfront. Again, you will lose out on this if the price of gas drops after you have paid, and price rises can mean it is hard to budget.

• The other option is a pass-through contract, which is a mix of fixed-rate and flexible rate tariffs. You get a lower fixed rate unit price, but flexible standing charges which will fluctuate in line with government policy.

• If you want to improve your business’s sustainability efforts then you should look at eco tariffs.

Here at D-ENERGi we make it really easy for you to find the cheapest business gas prices, so, call our team at 0800 781 7626 and we can help you to reduce your business energy costs.