Understanding your Business Gas Bill

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    There can be a lot of jargon on a business gas bill. Taking the time to understand what it’s telling you is often the key to learning more about your gas use and how to reduce what you pay. There have been changes to how gas bills look and the information they convey ever since Ofgem concluded that they were too complex and difficult to understand. Now, they are easier to read than ever, making it much more straightforward to understand what you’re paying for. There are also more gas suppliers than ever, meaning that you have to have an awareness of price tariffs and what different suppliers are offering.

    Unit Rate

    This is how much you pay per kilowatt-hour (kWh). Whenever you sign up for a new account or switch supplier, you will have the option of paying either a fixed rate deal or a variable rate. For a fixed rate tariff, how much each unit of gas (kWh) costs you will remain the same throughout the contract period. With a variable rate package, the price that you pay per kWh can go up or down, depending on fluctuations in the gas market.

    Standing Charge

    This is what you pay the gas supplier for all of the peripherals involved with you getting your gas. None of the standing charges relates to the gas that you use. Instead, it is the price that you’re paying for meter readings, maintenance, distribution, and transportation.

    It’s also worth noting that there are zero-standing charge tariffs. In most cases, these are for more seasonal businesses with more fluctuations in the cost of their unit rates. You should also be aware that businesses have to pay 20% VAT on gas and a fee for the Climate Change Levy (CCL). However, there are CCL discounts available, and some businesses may be exempt.

    Looking at Your Business Gas Bill

    Although different gas suppliers will always have variations in the way that their gas bills look and where they put information, they should all have the following information:

    • The contact details of the gas supplier.
    • The bill issue date.
    • The period that the bill covers.
    • How much your last payment was, and the date that payment was made.
    • Your business address and details, including your reference or account number.
    • The total cost of the gas you’ve used in your business before the VAT is applied.
    • The cost of your Business VAT (usually 20%, but some businesses are eligible for a lower rate VAT).
    • The total amount that you have to pay.

    These are the bare basics that every business gas bill will have. There is often some additional information that different suppliers will also include. Many will have the supplier’s gas supply number, and a meter point reference number (which will be useful information if you’re planning to change your gas supplier). Most will provide you with a very detailed breakdown of your gas use, with information like the last meter reading and the cubic feet (Cu FT) of gas you have used. There should also be some mention of whether the meter readings are actual or an estimation and how those readings were calculated. Finally, there may also be a payment slip included on the bill. This is only for those businesses that prefer to pay their gas bill by direct debit, bank transfer, or through the post.

    The Average Business Gas Bill

    How much your gas bill comes to will depend on the size of your business. A micro business will have a smaller bill than a large or industrial business, but the final cost will vary from supplier to supplier. On average, the following should be expected:

    Business Type                        Average gas consumption   Total Annual Bill

    Micro Business                                    5,000kWh                                £1,518

    Small Business                                     20,000kWh                              £3,664

    Medium Business                                35,000kWh                              £6,563

    Large Business                                     90,000kWh                              £15,609

    Industrial Business                               250,000kWh                            £52,931

    It’s important to realise that if your gas bill is around one of these averages, then there’s a very good chance that you’re paying too much. There are a lot of gas deals available at all times, so it’s always worth shopping around.

    Work from Home

    More people are starting a business from their own homes than ever. In some cases, it can be beneficial to switch from a domestic to a business gas tariff. There are protections in place if your home business is a microbusiness, such as a cooling-off period (not often available for larger businesses) and a shorter notice period.

     

    There are lots of factors that affect the price that you pay for your business gas. From wholesale costs to network charges, the more that you understand what the information on your bill is telling you, the easier it is to find ways to pay less.

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        Next

        Please enter your business gas information

        How much do you spend & how often?

        An estimate is fine if you don't have a bill to hand

        Go Back
        Get Prices

        Let’s save time, can we automatically gather meter information?

        ? What does this mean?
        To get your quotes at lightening speed we need several key pieces of information which can all be found on your electricity bill. But by simply ticking this box, we can search ‘industry held data’ to get your meter number, electricity consumption and current energy supplier. This means that we can get you quick quotes without asking you to dig out all of your paperwork. This is personal data therefore we need you to allow us to access this information.
        Go Back

        Do you know your electric meter number?

        Does your meter number end in any of the following?

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        Enter meter number

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        How much do you spend & how often?

        An estimate is fine if you don't have a bill to hand

        Start date for a new contract?

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