Business Gas · UK · Tariffs

Business Gas Tariffs UK: How to Compare and Choose

Confused by business gas tariffs? Here is what each tariff type really means, how suppliers price them, and how to compare tariffs for your firm. More guides in our business energy blog.

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What a business gas tariff actually is

A business gas tariff is simply the pricing structure of your gas contract. It has three parts: a unit rate charged per kWh of gas you use, a daily standing charge that applies whether you use gas or not, and the terms that govern both — how long the rate is fixed, when it can change, and what happens when the term ends. Everything else in a quote is detail around those three parts.

Unlike domestic gas, business gas has no price cap in the UK. Every tariff is priced individually, based on wholesale gas costs, your annual consumption, your region and the length of the contract. That is why two businesses on the same street can pay very different rates — and why comparing tariffs properly matters. If you are already looking at business gas prices, the tariff is the thing you are actually comparing.

Fixed tariffs

Your unit rate and standing charge are locked for the whole term. Predictable bills and protection from winter price rises — the default choice for most SMEs.

Variable tariffs

The supplier can change your rates, usually with notice. Your bill can fall if wholesale prices drop — or rise just as easily.

Deemed tariffs

The expensive default when a contract lapses without renewal. Never a strategy, always a sign to agree a new tariff quickly.

Flexible tariffs

You buy gas in tranches at market prices over the term. Can beat fixed tariffs for larger users with someone watching the market.

How to compare business gas tariffs

The most common mistake is comparing only the unit rate. A tariff with a slightly lower unit rate but a much higher standing charge can cost more over a year, especially for lower users. Always compare the total annual cost: unit rate times annual consumption, plus standing charge times 365, plus VAT and the Climate Change Levy.

Contract length matters too. A one-year tariff gives you freedom sooner; a two- or three-year tariff locks in certainty for longer. And timing matters most of all — gas wholesale prices are seasonal, and agreeing a tariff before the winter demand period is usually smarter than renewing in the middle of it. Our guide to business gas contracts explains the fixed-versus-flexible choice in more depth.

Find your current tariff details

Your bill shows your unit rate, standing charge, contract end date and MPRN. Those four numbers are everything a broker needs to quote you.

Compare total annual cost

Annualise every quote the same way — unit rate, standing charge, levies and VAT — so you compare like with like.

Check the renewal window

Agree your new tariff before the old one ends. Leaving it late is how businesses end up on deemed rates.

Business gas tariff FAQs

What is a business gas tariff?

A business gas tariff is the pricing structure of your gas contract: a unit rate per kWh, a daily standing charge, and the terms that govern them, such as how long the rate is fixed and what happens when the term ends.

What is the difference between a fixed and a variable business gas tariff?

A fixed tariff locks your unit rate and standing charge for the full term. A variable tariff lets the supplier change your rates, usually with notice, so your bill can move with the wholesale market in either direction.

What is a deemed business gas tariff?

A deemed tariff applies when a business uses gas without an agreed contract, typically after a contract ends without renewal. Deemed rates are usually far higher than negotiated tariffs and should never be left in place.

How are business gas tariffs priced?

Suppliers price business gas tariffs around wholesale gas costs, your annual consumption, your region, and the length of the contract. Unlike domestic tariffs, business gas has no price cap, so every tariff is individually priced.

When should I compare business gas tariffs?

Start comparing before your current contract ends. Suppliers typically let you agree a new deal months ahead of your renewal date, which lets you lock in a rate while you still have time to choose.

Is your gas tariff still competitive?

Haroon Ur Rasheed will benchmark your current gas tariff against the market and show you the fixed and flexible options available — free, with no obligation.

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