HomeBusiness energyBest business gas prices in 2024 – Finding the cheapest gas suppliers for your company

Best business gas prices in 2024 – Finding the cheapest gas suppliers for your company

Are you looking for the best business gas prices? In 2024, UK businesses are navigating a complex energy market, with gas prices significantly impacting operational costs. This year has seen a shift in gas prices, influenced by various economic factors. Understanding these changes is crucial for companies seeking the most cost-effective energy solutions.

Here are the business gas prices and features from various UK suppliers, presented in a series of tables for clarity.

Average business gas prices by size (February 2024)

Business SizeAnnual Consumption (kWh)2022 Avg Rate (p/kWh)2023 Avg Rate (p/kWh)2024 Avg Rate (p/kWh)
Small10,000 to 50,0005.116.39.0
Medium50,000 to 100,0003.715.88.5
Average UK business gas prices 2024

Business gas prices per kWh and annual costs (February 2024)

Business SizeAverage Usage (kWh)Unit Price (p/kWh)Annual Cost (2-year contract)
Very Small5,00012.6p£796
Very Large100,0008.8p£9,377
Cheapest business gas prices 2024

Cheapest business gas suppliers (25,000 kWh usage annually)

SupplierPrice per kWhDaily Standing ChargeAnnual Cost
Smartest Energy9.1p25.1p£2,358
Scottish Power9.0p30.6p£2,371
British Gas Lite10.3p45.2p£2,728
British Gas10.9p75.4p£2,989
Valda Energy10.1p39.8p£2,664
Total Gas & Power10.5p152.2p£3,180
Cheapest business gas suppliers 2024

Features of select UK business gas suppliers

SupplierKey Features
British GasFixed gas prices, various plan lengths, caters to all business sizes, including multi-site.
Scottish PowerRange of plans with fixed/variable prices, no tie in or exit fees, energy efficiency advice.
npowerCompetitive rates, fixed-term contracts, caters for multiple site businesses, UK based support.
SSEChoice of energy contracts, fixed-rate plans, tracking contracts, flexible plans for larger businesses.
EDF EnergySupplies to SMEs and large businesses, range of tariffs, online management, discounts for direct debit.
E.ONCompetitive plans, fixed-rate options, terms up to 4 years, online management, energy advice.

These tables provide a detailed view of the business gas market in the UK, highlighting the diversity of prices and features offered by different suppliers.

2024 business gas price trends

Compared to the stark increases in 2023, 2024 has brought some relief to businesses. Small businesses (consuming 10,000 to 50,000 kWh) are now seeing average rates of 9.0 p/kWh, a decrease from 2022’s 16.3 p/kWh.

Similarly, medium businesses (50,000 to 100,000 kWh) have seen rates drop from 15.8 p/kWh in 2022 to 8.5 p/kWh. For large businesses (100,000+ kWh), rates have reduced to 8.3 p/kWh.

Comparing gas prices by business size

Businesses of varying sizes have different gas needs, and the market reflects this. Very small businesses (5,000 kWh) face higher unit prices of 12.6p/kWh, while very large businesses (100,000 kWh) benefit from lower rates at 8.8p/kWh. It’s essential for businesses to consider their consumption levels when seeking the best deals. See business energy comparison.

Cheapest business gas suppliers in 2024

The most competitive rates for a business consuming 25,000 kWh annually are offered by suppliers like Smartest Energy (9.1p/kWh) and Scottish Power (9.0p/kWh).

However, it’s important to consider the daily standing charge, which can significantly impact the overall cost. For instance, Total Gas & Power offers a rate of 10.5p/kWh but with a high standing charge of 152.2p, leading to a higher annual cost.

Business gas supplier features and plans

Suppliers like British Gas and SSE offer a range of plans, including fixed-rate and variable options, catering to different business needs. EDF Energy and E.ON provide competitive plans with fixed-rate options, suitable for businesses looking for price stability.

Navigating the market

The key to finding the best gas deal lies in understanding your business’s specific energy needs and consumption patterns. Comparing prices and features offered by various suppliers is essential. Companies should also consider the length of contracts and potential benefits like energy efficiency advice or smart metering.

Conclusion – Finding the best business gas prices

2024 presents opportunities for UK businesses to secure better gas deals. By staying informed and strategically assessing options, companies can navigate the dynamic energy market and find cost-effective solutions that align with their specific needs.

Remember, the cheapest rate per kWh might not always translate to the lowest overall cost, so consider all aspects, including standing charges and contract terms, when making your decision.

FAQ about best business gas prices

What factors influence business gas prices?

Business gas prices are influenced by global energy markets, supply and demand, geopolitical events, and government policies.

How do business gas prices vary by business size?

Prices often vary based on consumption levels, with larger businesses generally benefiting from lower per-unit costs due to economies of scale.

Can businesses negotiate their gas prices?

Yes, particularly larger businesses may have the leverage to negotiate rates, especially when they have higher consumption levels or multiple sites.

What is the difference between fixed and variable gas plans?

Fixed plans lock in a rate for a set period, offering price stability. Variable plans fluctuate with market prices, which can be advantageous or risky depending on market trends.

Are there green energy options for business gas?

Yes, many suppliers offer green energy options, allowing businesses to opt for environmentally friendly gas sources.

How can businesses reduce their gas bills?

Implementing energy-efficient practices, negotiating better rates, and regularly comparing supplier offers can help reduce gas bills.

Should businesses choose the cheapest rate per kWh?

Not necessarily. It’s important to consider the overall cost, including standing charges and contract terms, not just the rate per kWh.

How often do gas prices change?

Gas prices can change frequently, influenced by market conditions and other external factors.

What should businesses consider when choosing a gas supplier?

Businesses should consider factors like price, contract length, customer service, and any additional services offered by the supplier.

Is it complicated to switch business gas suppliers?

The process can vary, but many suppliers aim to make switching as seamless as possible. It’s advisable to check the terms of your current contract for any exit fees or other conditions.

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