As one of the UK’s leading energy suppliers, British Gas plays a significant role in the business energy landscape. This guide provides an overview of British Gas’s current pricing strategies, business energy products, and what these mean for your enterprise.
Overview of British Gas business energy offerings
British Gas, a subsidiary of Centrica plc, is a major provider of energy services to both residential and commercial customers across the UK. Their business energy solutions cater to companies of all sizes, from small startups to large multinational corporations. Key offerings include:
- Electricity and gas supply: British Gas provides tailored electricity and gas contracts designed to meet the specific needs of businesses. These contracts can vary in terms of length, pricing structure, and terms, allowing businesses to choose options that align with their budget and energy consumption patterns.
- Renewable energy options: As the demand for sustainable business practices grows, British Gas offers renewable energy tariffs that allow companies to reduce their carbon footprint. These tariffs often come at a premium but provide businesses with the opportunity to use energy sourced from wind, solar, and other renewable resources.
- Smart meters and energy management: British Gas promotes the use of smart meters to help businesses monitor their energy usage more accurately. Smart meters provide real-time data, allowing businesses to identify inefficiencies and potentially reduce their energy consumption and costs.
- Business energy services: Beyond just supplying energy, British Gas also offers a range of services aimed at helping businesses manage their energy needs more effectively. These include energy audits, consultancy services, and bespoke energy solutions designed to optimise usage and reduce costs.
British Gas business energy pricing list – Gas and electricity
| Contract Type | Electricity (pence per kWh) | Gas (pence per kWh) | Standing Charge (pence per day) |
|---|---|---|---|
| Fixed-rate (1-year) | 18.5 | 4.2 | 28.0 |
| Fixed-rate (2-year) | 18.0 | 4.1 | 27.5 |
| Fixed-rate (3-year) | 17.8 | 4.0 | 27.0 |
| Variable-rate | 19.5 (avg.) | 4.5 (avg.) | 29.0 |
| Flex approach | Negotiable | Negotiable | Varies |
| Renewable electricity | 19.0 | N/A | 28.5 |
| Out-of-contract rate | 22.0 | 5.0 | 30.0 |
| Deemed rate | 25.0 | 5.5 | 32.0 |
Notes:
- Fixed-rate contracts: Provide price stability over a set period, typically with slightly lower standing charges than variable-rate contracts.
- Variable-rate contracts: Prices can fluctuate based on market conditions, potentially offering savings during periods of low market prices.
- Flex approach: Customised pricing for larger businesses, allowing for strategic energy purchasing based on market trends.
- Renewable electricity: Slightly higher rates due to the premium associated with renewable energy sourcing.
- Out-of-contract and deemed rates: Significantly higher rates, applied when businesses are not actively managing their contracts. It’s advisable to switch from these rates to avoid excessive costs.
This table provides a snapshot of the typical pricing structure businesses might encounter with British Gas. Businesses should contact British Gas directly or work with an energy consultant to get the most accurate and up-to-date pricing for their specific needs.
Understanding British Gas business pricing structures
The pricing for business energy from British Gas is influenced by several factors, including market conditions, energy demand, and government regulations. British Gas typically offers the following pricing structures for its business customers:
- Fixed-rate contracts: These contracts provide businesses with price certainty over a fixed period, usually between one to three years. The fixed-rate option protects businesses from market fluctuations, making budgeting easier. However, it may mean paying slightly more if market prices fall.
- Variable-rate contracts: With variable-rate contracts, the price businesses pay for energy can change depending on market conditions. While this option might offer lower rates when market prices are low, it also exposes businesses to potential price increases.
- Flex approach: For larger businesses with significant energy needs, British Gas offers a flexible purchasing strategy. This approach allows companies to buy energy in multiple blocks throughout the contract duration, taking advantage of favourable market conditions.
- Deemed and out-of-contract rates: Businesses that have not actively chosen a tariff or are between contracts are usually placed on deemed or out-of-contract rates, which tend to be higher. These rates are not ideal for cost-conscious businesses and should be avoided by actively managing energy contracts.
Recent changes and market trends
In recent years, several factors have impacted British Gas’s pricing and business energy products. These include:
- Rising wholesale energy prices: Global factors, including increased demand and supply constraints, have led to higher wholesale energy prices. These costs are often passed on to consumers, including businesses.
- Regulatory changes: The UK government has implemented various regulations to encourage renewable energy usage and reduce carbon emissions. These regulations can impact energy prices and the types of products offered by suppliers like British Gas.
- Technology advancements: The adoption of smart technologies and the digitalisation of energy management have enabled more sophisticated pricing models and energy products. Businesses can now use real-time data to manage their energy consumption more effectively.
Tips for managing your business energy costs
To make the most of British Gas’s offerings and manage your energy costs effectively, consider the following tips:
- Regularly review your energy contract: Ensure that your business is on the most suitable tariff for its needs. Fixed-rate contracts may offer stability, but variable rates can provide savings when market conditions are favourable.
- Explore renewable options: If sustainability is a priority for your business, explore British Gas’s renewable energy tariffs. Although they may come at a premium, they align with corporate social responsibility goals and can enhance your brand image.
- Invest in energy efficiency: Use smart meters and energy management services offered by British Gas to monitor and optimise your energy consumption. Identifying areas where energy is wasted can lead to significant cost savings.
- Plan for the long term: Consider the long-term implications of your energy choices. Investing in energy-efficient technologies or committing to a longer-term contract can provide stability and potential cost savings.
For more, see our business energy comparison, and our price lists for business gas and business electricity.
British Gas business pricing FAQ
British Gas offers fixed-rate electricity prices for business customers, typically ranging from 17 to 19 pence per kWh. These rates provide stability over a contract term, which can be one, two, or three years.
For business gas, British Gas’s fixed-rate contracts usually offer prices between 4 and 5 pence per kWh. These rates are locked in for the duration of the contract, shielding businesses from fluctuations in the market.
The standing charges for British Gas business energy plans typically range from 27 to 30 pence per day for both electricity and gas. These charges cover the cost of maintaining the supply and infrastructure.
British Gas deemed rates are higher than standard contract rates. For businesses on deemed rates, the cost can be significantly more, with electricity rates potentially reaching up to 25 pence per kWh and gas rates around 5.5 pence per kWh. These rates apply when no formal contract is in place.
British Gas offers 100% renewable electricity plans, which are generally priced at a slight premium compared to standard plans. These renewable plans usually fall within the same range as fixed-rate contracts, around 17 to 19 pence per kWh for electricity, but the exact price can vary depending on market conditions and contract terms.
For variable-rate plans, British Gas prices can fluctuate. On average, business customers might pay around 19.5 pence per kWh for electricity and 4.5 pence per kWh for gas. These rates can change based on market conditions and energy supply.
Yes, British Gas offers carbon-neutral gas options for businesses, which typically come at a premium compared to standard gas rates. The prices for these options are not explicitly stated, but they generally align with premium renewable offerings, ensuring that 10% of the gas is backed by Renewable Gas Guarantees of Origin (RGGOs).
Most British Gas business energy customers are charged VAT at a rate of 20%. However, depending on the type of business and usage, some may qualify for a reduced VAT rate of 5%. Businesses also need to account for the Climate Change Levy (CCL), currently set at 0.811 pence per kWh for electricity.