Compare business gas prices with Bionic

The cost of your business gas bills can be affected by any number of things, from the location of your business premises to the number of staff you employ and, obviously, the amount of gas you use.

To give you a rough idea of how much you should be paying, here are the average annual gas bills for SMEs:

• Microbusinesses pay an average of £430 a year
• Small businesses pay an average of £856 a year
• Medium-sized businesses pay an average of £1,424 a year

Each business uses energy differently, so the figures above should only be used as a guide when working out the rates you should be paying. Speak to the energy experts at Bionic and we’ll find a business gas tariff that suits the exact needs of your business.

If your gas bills are too high, an overpriced tariff might not be the only reason - you might simply be using too much energy. This could be down to bad habits - such as leaving the heating on too high - or the fact that your business premises isn’t as energy efficient as it should be.

To give you a rough idea of how much gas you should be using, here are the average annual gas consumption figures SMEs

• Microbusinesses use an average of 10,000 kWh a year
• Small businesses use an average of 25,000 kWh a year
• Medium-sized businesses use an average of 45,000 kWh a year

For more information, check out our guide to average business energy consumption.

Your MPRN will be between six and ten digits long, and you should be able to find it on your business gas bill and on the meter itself. Also known as an ‘M Number’, MPRN stands for Meter Point Reference Number, and is used by suppliers to identify the gas supply at your property.

To find out more about meter numbers, check out Bionic’s guide to MPAN and MPRN.

It’s unlikely that your gas meter will need replacing if it’s a standard meter. If you have a smart meter, you may need to switch meters if the one you have isn’t compatible with your new supplier. For more information, check out our guide to smart meters for business.

Although you can cut the cost of your business gas bills by being more energy efficient, commercial gas prices are affected by a number of factors, many of which are out of your control. Wholesale prices are the main driver behind the rates you pay, and these can be affected by problems with the supply chain and fluctuations in currency prices, along with regulator fees and government levies.

Even a cold winter can push up gas prices for business, as freezing temperatures increase demand.

The best way to protect your business from increasing gas prices is to lock in your rates with a fixed term contract - although your energy bills will still vary according to your usage, fixing your rates means the price you pay for each unit of gas you use will stay the same for the duration of your deal.

Most businesses pay the standard 20% VAT on gas, but you might qualify for the lower 5% rate if you run a charity or not-for-profit organisation. You might also qualify for a discount if you use less than 4,397kWh each month – if you’re not sure how much you use, you can find the exact figure on your latest bill.

If you qualify for the lower rate, ask your gas supplier for a VAT declaration form. Find out more about VAT and business energy in our guide to VAT for business gas and electricity.

Even if your gas is supplied by an IGT, there’s nothing stopping you from comparing gas prices and switching suppliers, but you might find your switch takes a bit longer and the deal you’re offered might not be as competitive as others.

This is because the costs involved in supplying and maintaining IGTs are relatively high, which means the standing charge is often higher. And when you compare gas quotes, the extra IGT charges won’t be included, so you’ll also have to factor these costs in on top of the rates you’re offered. It’s important to compare deals from a range of suppliers, as you might find some of the bigger providers will take on the IGT charges to get your custom.

While many suppliers now offer 100% green electricity as standard, environmentally friendly gas production technology isn’t quite as advanced, which means green gas deals are much more difficult to come by.

As with green electricity, green gas is produced using environmentally sustainable sources – such as plants or animal waste. But, unlike green electricity, environmentally friendly gas production isn’t always an option - while solar and wind farms are located right across the UK, your ability to run on green gas will depend on where your business is located. This, along with the regional variation in energy prices, is why we take your postcode before running an energy comparison.

If green gas isn’t an option for your business, you could choose a supplier that supports environmental projects and sustainable energy in other ways. To find out more, check out our guide to renewable energy for business.

The amount you can save by switching business gas depends upon the following factors:

• The size of your business
• The size of your business premises
• The location of your business premises
• The number of staff you employ
• The overall energy efficiency of your business and premises

To find out how much money your business could save, give our tech enabled energy experts a call now on 0800 084 1911, and run a commercial gas comparison. We’ll find the right business gas quote for your business in a matter of minutes.

Business gas prices are always changing. The only way to make sure you’re on the best deal is to compare prices and switch. And remember, signing up to a new deal as soon as your switching window opens can help you lock in lower rates and beat any energy price rises.