Business gas, explained

Business gas is gas supplied to commercial premises on a negotiated contract: fixed terms, no price cap, and no cooling-off period once you agree. A small business pays around 10.6p per kWh plus a standing charge of 40.6p a day as of July 2026 (MoneySuperMarket, Bionic supplier panel, 1–8 July).

Unlike your gas at home, nobody caps what your business pays. The rate you get depends on when you sign, for how long, and whether anyone was negotiating for you. This page is the map. Each section below covers one part of the subject in brief and links to the full guide.

What it costs

Average unit rates in July 2026 run from 9.9p per kWh for large users to 11.1p for medium ones, with micro businesses at 10.9p and small businesses at 10.6p (MoneySuperMarket, Bionic panel). Standing charges sit between 39.1p and 49.9p a day depending on size. The full breakdown by usage band, and what moves those numbers, is on our business gas prices page.

The taxes on top

Two taxes sit on every bill. The Climate Change Levy adds 0.801p per kWh from 1 April 2026, rising to 0.827p from April 2027; businesses with a climate change agreement pay 89% less of it (gov.uk). VAT is 20% as standard, dropping to 5% if your usage averages no more than 145 kWh a day or your use qualifies, such as charity non-business use (HMRC Notice 701/19).

How buying it works

You need a recent bill and your MPRN, the number that identifies your meter point. Our guide to MPAN and MPRN numbers shows where to find it. From there, a business gas quote takes about ten minutes. We act under a letter of authority, which lets us pull your usage data and nothing more; what an LOA does and doesn't allow is worth two minutes before you sign anyone's.

One fact worth its own paragraph: business energy contracts have no cooling-off period, even when agreed over the phone (Ofgem). A verbal yes is binding. Get every offer in writing first.

Choosing well

The cheapest unit rate is not always the cheapest bill. Contract length, standing charge and pass-through costs all move the total, and the trade-offs are covered in how to compare business gas prices. Who actually sells the stuff, from household names to specialists, is on business gas suppliers.

Types of contract

Most businesses sign fixed contracts: one unit rate, locked until the end date. Variable and pass-through deals track the market instead, which cuts both ways. Let a contract lapse without agreeing a new one and you land on out-of-contract rates, usually the most expensive gas a supplier sells. Green gas tariffs match your usage with certified biomethane, and most major suppliers now offer one.

Switching, renewing, staying put

Switching supplier never interrupts your gas; the pipes and the emergency number stay the same, and the admin is the new supplier's problem. Most switches complete within five working days under Ofgem's faster switching rules, once your current contract allows it. The step-by-step is at switch business gas. When the renewal letter lands, our business gas renewal page decodes it, including the default rates it hopes you won't read. And sometimes the honest answer is neither: if your current deal beats the market, we'll tell you to stay put.

Moving premises

Use gas at a new premises before agreeing a contract and you're on a deemed contract at rates the incumbent supplier chose (Ofgem). Deemed rates typically cost well above contracted ones, and the fix is agreeing a proper deal. Start with moving business gas premises.

Small businesses, large businesses

Smaller firms, what Ofgem calls micro businesses, get extra protections: limits on the notice suppliers can demand at renewal, and access to the Energy Ombudsman when complaints stall. Rates and rights for the small end are on small business gas prices. High-volume users play a different game, with different suppliers and contract shapes, covered under commercial gas suppliers.

Meters and connections

New site with no gas supply, a meter upgrade, or a meter in the wrong place: all of it runs through the network operator and takes longer than anyone wants. Business gas meter installation covers timescales, costs and who to chase. If you're still on estimated bills, a smart or AMR meter fixes that too.

Gas and electricity together

Most businesses buy both, and pricing them at the same time is usually worth doing. To weigh a single supplier against splitting them, compare business gas and electricity prices.