25 Jul 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.
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11 Jul These days, decarbonisation is on the tips of everyone’s tongues, with many businesses and homeowners increasing their emphasis on renewable energy sources. People are turning their heads to wind-powered electricity or installing solar panels on their own homes in an effort to be more carbon neutral. So why are we still so reliant on energy from gas?
This blog will give a gas energy comparison to other forms of energy, explaining why it’s still such a pillar of power today and touching on why prices are so high at the moment.
Gas efficiency and performance still reigns supreme
Natural gas has a high energy density, making it super efficient for various applications. It can be used for heating spaces, water and industrial processes, with this heating easily controlled with instant precision. It’s still a crucial tool in manufacturing and processing plants. With that in mind, it’s also worth noting many businesses use natural gas for CHP systems, generating electricity and useful heat for even more efficiency.
Gas is still fairly cost-effective (even in the energy crisis)
Why is electricity more expensive than gas? Because, despite being more environmentally-friendly, electricity is usually subject to more environmental taxes. Gas harnessing operational and maintenance costs are also generally lower, making prices from business gas suppliers or home energy companies more stable in general.
Why is my gas bill so high then?
Despite the cost effectiveness of gas, it’s still being impacted by the energy crisis. This is because of various reasons, such as geopolitical tensions with key suppliers like Russia, currency fluctuations and the increased demand from Asian nations. Cost effectiveness sadly isn’t the only factor that influences business gas prices, but awareness of how to manage energy bills is on the rise.
Gas has strong infrastructure the world over
Energy from gas is readily available from many different locations across the world. There’s a strong pipeline in various global regions, ensuring, even in volatile times, the world can enjoy a consistent supply of natural gas. It’s the most reliable source for preventing power cuts or interruptions, along with being the top choice for backup generators.
It also benefits from being piped, rather than stored or generated on site, saving space and logistical effort for businesses.
Gas is run by supply and demand
It’s vital to remember that even as a fossil fuel and finite resource, natural gas supplies remain significant across the world. In some areas of the world, oversupply has outpaced demand, contributing to even lower prices. Europe, North America and Asia have all increased demand for gas, meaning it’s going nowhere in the energy landscape any time soon.
It’s also largely considered a “transition fuel” – one that supports the wider adoption of more renewable energy sources as a backup.
Stay on top of the energy landscape
If you’re interested in staying aware of how the energy landscape is shaping up in 2025, make sure to check out our blog. We offer blogs that range from small-scale energy guides to wider-spanning articles like these to keep readers in the know when it comes to all things business energy related.
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