Business gas prices
Compare your business gas prices with today's market
Last checked:
We check your gas unit rates, standing charges and contract terms against current market prices. Then a specialist will ring you to explain where you stand.

What UK businesses pay for gas
Between April and June 2026, UK businesses paid an average of 5.28p per kWh for gas, including the Climate Change Levy but not VAT. The smallest users paid more, at 9.31p. These figures come from the government and were published on 29 September 2026.
Average business gas prices, April to June 2026
| Size band | Yearly use (approx.) | Price per kWh |
|---|---|---|
| Very small | Up to 278,000 kWh | 9.31p |
| Small | 278,000 to 2.78 million kWh | 4.86p |
| Medium | 2.78 million to 27.8 million kWh | 4.20p |
| Large | 27.8 million to 278 million kWh | 3.83p |
| Very large | 278 million to 1.1 billion kWh | 3.97p |
| Average, all businesses | 5.28p |
Including the Climate Change Levy, excluding VAT. Provisional figures, which may be revised. Source: Department for Energy Security and Net Zero, table 3.4.2, published 29 September 2026.
These prices cover the whole bill apart from VAT, so standing charges are spread across every kWh. The very small band covers sites using up to 278,000 kWh a year. To compare your own price, add up a year of bills before VAT, divide the total by the kWh they cover and multiply by 100 to get a figure in pence.
See how to work out your own price, electricity prices and the trend since 2019
What makes up a business gas bill
Gas bills look simpler than electricity bills, but they're made up of several charges too, and there's no price cap to limit them.
Unit rate
The price you pay for each kWh of gas you use.
Standing charge
A fixed amount you pay each day, whether you use any gas or not.
Transport costs
Charges for moving gas through the network to your site, which are usually built into your rates.
Units to kWh
Your meter measures the volume of gas you use, and your bill converts that to kWh using the figures printed on it.
Climate Change Levy
A tax on business energy use, charged at 0.801p per kWh of gas from 1 April 2026. Some uses qualify for relief from it.
VAT
Most businesses pay the standard rate of 20%. Sites using up to 145 kWh a day, and qualifying uses such as care homes, pay the lower rate of 5% instead.
What affects the gas prices you're offered
Business gas prices aren't set from a public price list. Instead, each supplier prices your site based on a few things it knows about you:
- Your annual quantity (AQ). This is the industry's estimate of how much gas your meter uses in a year in normal weather. Suppliers base your contract price on it, and it also helps set your transport charges.
- How much you use. If you use less, the fixed costs are spread over fewer kWh, so smaller users pay more per kWh, as the table above shows.
- When you're quoted. Suppliers base each quote on wholesale prices at the time, so it's usually only valid for a short while.
- Where you are. The cost of carrying gas to your site varies from region to region.
- The contract you choose. That means how long it runs, and whether all your costs are fixed or some are passed through as they change.
- Your business's credit record. Suppliers usually run a credit check, and depending on the result they may ask for a deposit or offer different terms.
- Being out of contract. Deemed and out-of-contract rates are usually much higher than a new fixed contract. Find your supplier's deemed rates.
Keep your annual quantity up to date
Your AQ is recalculated each month, but only when a new meter reading reaches the industry's systems. If nobody has read your meter for a while, your AQ can be a long way off what you use now, and your quotes can be too.
- Give your supplier regular meter readings, especially if your use has changed.
- Compare the AQ on your bill or quote with a year of your own readings.
- If it looks wrong, ask your supplier or broker to put it right before you agree a contract.
Types of business gas contract
The type of contract decides whether your prices can change during the term, so check which kind a quote is for before you compare them.
| Contract | How your price works | Worth knowing |
|---|---|---|
| Fixed | Your unit rate and standing charge stay the same for the whole term. | You know your prices for the whole term, but check what happens when it ends. |
| Pass-through | The gas price is fixed, but transport and other non-energy costs are passed on as they change. | Your bill can still go up during the term, even though the gas price is fixed. |
| Variable | Your supplier can change your prices during the contract. | Check how much notice your supplier gives before a change. |
| Flexible | Gas is bought in stages through the term, so your price follows the wholesale market. | It's mainly used by larger businesses that have someone to manage the buying. |
| Rolling | The contract carries on until you give notice. | If you're a microbusiness, the notice can't be longer than 30 days. |
| Deemed or out-of-contract | What you pay when no contract is in place, either after moving in or when a contract ends without a new one. | It's usually much higher than a contract price, though you can normally move onto a contract at any time. |
Gas and electricity are usually separate contracts, so they can be with different suppliers and end on different dates. It's worth keeping both end dates in your diary.
How to compare business gas quotes
A low unit rate can hide a high standing charge, so start by comparing what each quote costs over a year, then look at the terms.
- Find your yearly use in kWh and your supply number (MPRN), which are both on your bill.
- Check the annual quantity each supplier has used. If it's different from your own figure, ask why before you compare quotes.
- Work out each quote's yearly cost, using the same yearly use for every quote.
- Check whether it's fully fixed, or whether transport and other costs can be passed through during the term.
- Check the length and end date, and what happens when it ends, whether that's a rollover, a rolling contract or out-of-contract rates.
- Check the exit terms, meaning the notice you'll need to give and any fee for leaving early. Business contracts don't usually come with a cooling-off period.
- Check the broker fee if a broker arranges the contract. Suppliers have to show it in the contract's main terms.
- Compare quotes from the same few days, because prices move with the market.
Yearly cost = (standing charge per day × 365) + (unit rate × the kWh you use in a year)
The Climate Change Levy and VAT are added on top at the same rates whichever quote you choose, so they don't change how the quotes compare.
If you're ready to move, our switching guide takes you through the steps.
How your free energy check works
It takes about two minutes on your side. We do the rest.
- Step 1
Tell us about your business
Your name, your business name and a phone number are all we need. If you have a recent bill to hand, you can add it, but you don't have to.
- Step 2
We compare your costs
We look at your rates, standing charges and contract terms, and compare them with what the market is charging now.
- Step 3
A specialist calls you
They'll ring at a time that suits you and talk you through what we found. There's no pressure and nothing to sign.
The check is free and you never pay us.
We introduce businesses to Assured Energy, our energy procurement partner, and they pay our fee if you decide to switch. If your current deal is already a good one, they'll tell you, and you'll know where you stand.
Check your business gas prices for free
Tell us a little about your business and a specialist will call within two working days to go through your results.
Questions about business gas prices
What are business gas prices in 2026?
Between April and June 2026, UK businesses paid an average of 5.28p per kWh for gas, including the Climate Change Levy but not VAT. What you pay depends on how much you use, your contract and when you agreed it.
How do I compare business gas prices?
Start by working out each quote's yearly cost from its unit rate and standing charge, using your own yearly use. Make sure every supplier used the same annual quantity, then check whether it's fully fixed, how long it runs, the exit terms and any broker fee.
Is there a price cap on business gas?
No. The energy price cap only protects households. Business contracts aren't covered by it, so your rates depend entirely on the contract you have.
Why does my meter show cubic metres but my bill shows kWh?
Your meter measures the volume of gas you use, and your supplier converts it to kWh. The calculation is cubic metres × 1.02264 (a correction for temperature and pressure) × the calorific value shown on your bill, divided by 3.6. Older meters show cubic feet, which are converted to cubic metres first.
What is my gas annual quantity?
It's the industry's estimate of how much gas your meter uses in a year in normal weather. The figure is recalculated each month when a new meter reading comes in, and suppliers use it to price your contract.
Does the Climate Change Levy apply to gas?
Yes, for most business use, although some uses, such as residential care, qualify for relief.
Do I need a bill for a free check?
No. Your name, business name and phone number are enough to start with. A recent bill just makes the check more precise.
Will switching interrupt my gas supply?
No. Your gas comes through the same pipes, so nothing changes on site. Only the company that bills you changes.
Do small businesses pay more for gas?
On average, yes, per kWh. In April to June 2026, businesses using up to 278,000 kWh a year paid 9.31p per kWh, against 5.28p for all businesses, partly because fixed costs, such as standing charges, are spread over fewer kWh.
How do I get business gas quotes?
Ask suppliers directly or through a broker, with your MPRN, your annual quantity and your contract end date to hand. Check that every quote uses the same annual quantity, and compare quotes from the same few days.
Can I get business gas and electricity from different suppliers?
Yes. Business gas and electricity are usually separate contracts, so they can be with different suppliers and end on different dates.
Small business gas prices
Smaller businesses usually pay more per kWh for gas, partly because fixed costs, such as standing charges, are spread over fewer units. In April to June 2026, businesses in the very small band, using up to 278,000 kWh a year, paid an average of 9.31p per kWh, against 5.28p for all businesses.
Two things to check if your site is small:
- 5% VAT on low use. If your site uses no more than 145 kWh of gas a day on average, your gas is charged VAT at 5% rather than 20%.
- Microbusiness protections. You count as a microbusiness if you have fewer than 10 employees and a turnover or balance sheet of no more than £2 million, or if you use up to 293,000 kWh of gas or 100,000 kWh of electricity a year. Your supplier must then tell you your renewal prices before your contract ends, and the notice on an evergreen contract, one that rolls on until you end it, can't be longer than 30 days.
Getting business gas quotes
When you ask for quotes, have these to hand:
- your MPRN, the supply number on your gas bill;
- your annual quantity (AQ), and a year of your own meter readings to check it against;
- your contract end date and any notice your contract needs;
- your business's legal name and address, and its company number if it's a limited company.
Compare quotes from the same few days, since prices move with the market, and check that every supplier has used the same annual quantity.
Choosing a business gas supplier
Your supplier is the company that bills you. The gas reaches your site through the same pipes whoever you choose, so switching doesn't change your supply. Suppliers differ on price, on contract terms such as length and exit fees, and on what they charge if a contract ends without a new one. Find your supplier's deemed rates to see what yours charges.
Every business uses energy differently
Your specialist looks at your rates with the way your business runs in mind.

Care homes
Heating, hot water, laundry and kitchens that run day and night, all year round.

Manufacturing
Machinery, ovens and compressors, where every penny on the unit rate adds up.

Hotels and accommodation
Rooms, kitchens and laundry, with demand that rises and falls with the seasons.

Breweries and distilleries
Heating, cooling and cleaning for every batch, often over long production runs.
Sources
- Department for Energy Security and Net Zero, gas and electricity prices in the non-domestic sector: table 3.4.2, published 29 September 2026.
- Xoserve, Annual Quantity (AQ): what the AQ is, its monthly update when a new reading arrives, and its role in transport charges.
- British Gas, how to convert gas m³ to kWh: the conversion formula and where the calorific value is shown.
- HMRC, Climate Change Levy rates: 0.801p per kWh from 1 April 2026.
- HMRC, VAT on fuel and power (VAT Notice 701/19): the 5% rate and the 145 kWh a day limit for gas.
Contains public sector information licensed under the Open Government Licence v3.0.