Business gas FAQs
The questions UK businesses actually ask about gas, answered in plain English with the source page linked. 25 answers across six categories: what gas costs, how contracts and switching work, meters and MPRN numbers, suppliers, emergencies and moving premises, and VAT and the Climate Change Levy.
Prices and rates
What is the average business gas rate?
There is no single national rate, because business gas is priced per business, not per tariff. As at August 2026, indicative unit rates across our panel sit in the region of 3 to 4p/kWh, larger consumers at the lower end, with daily standing charges from roughly 25p to 150p depending on meter type and size. The full table by business size, refreshed monthly, is on our business gas rates page.
Why is my gas rate different from another business's?
Because suppliers price each contract individually: annual consumption and its seasonal shape, postcode and network, meter type, credit rating and contract length all move the quote. A hotel with a flat load profile prices better than a school with peaky winter demand, and a strong credit record is worth real money at tender. That is why comparing your rate against a neighbour's tells you little, while a whole-of-market tender tells you everything.
What is the NBP and why does it matter to my bill?
The National Balancing Point is the UK's wholesale gas market, where gas is traded daily in pence per therm. The wholesale cost typically makes up 40 to 60% of a business gas bill, so NBP movements drive what suppliers quote you, and renewal offers are priced off the NBP forward curve. Watch the live NBP gas price, updated every trading day, and our guide to what affects gas prices in the UK explains the drivers behind the moves.
What else is on the bill besides the gas itself?
Non-commodity costs: the regulated charges that fund the transmission network, local distribution, metering and any Independent Gas Transporter surcharge, typically 20 to 30% of a business gas bill. On top sit the daily standing charge, the supplier's margin, the Climate Change Levy and VAT. Our guide to the hidden costs on a business energy bill walks through the regulated layer line by line.
Why has my standing charge gone up?
Standing charges cover the fixed cost of connecting your premises to the gas network, and they have risen steadily since 2021 as network operators recovered the cost of supplier failures during the energy crisis. Premises on an Independent Gas Transporter network pay more again. Because the charge is daily and fixed, using less gas does not reduce it: the lever is making sure the meter class and network details behind it are right, which is part of our 12 checks for reducing business gas bills.
Contracts and switching
How long is a typical business gas contract?
Fixed-price business gas contracts run 1 to 5 years. Shorter terms let you retender sooner if wholesale prices fall; longer terms lock in budget certainty and usually price lower per kWh because the supplier carries less near-term risk. Our trading desk typically recommends 2 to 3 year fixes for mid-market clients. The right answer depends on where the wholesale NBP market sits when you sign, not on habit.
Can I switch business gas supplier mid-contract?
Generally no. Business gas contracts are binding for the full term, and exiting early usually triggers termination charges that wipe out any saving. The switching window opens with your renewal notice, typically 6 to 12 months before the contract end date. Micro businesses have extra protections under Ofgem's microbusiness rules, including a 14 day cooling-off period on contracts sold by telephone. Diarise the end date the day you sign: timing your renewal is the biggest lever on the whole bill.
How long does switching business gas supplier take?
Once the contract is signed, your new supplier registers the supply at the Central Switching Service. Most business switches complete in around 5 working days under the faster switching arrangements, though some legacy meters and objection cases can take 4 to 6 weeks. The switch itself completes at your contract end date, and submitting an actual meter read on the day prevents the estimated-bill disputes that follow most transfers.
What are deemed and out-of-contract gas rates?
The default rates a supplier applies when you have no signed contract in place, either because a fixed term ended with nothing agreed or because you moved into a premises. They typically run 2 to 3 times the rate of an equivalent fixed contract, and there is no termination fee to escape them because there is no contract to terminate. Our out-of-contract rates tracker lists each supplier's latest published deemed rates with source documents.
What happens if I do nothing when my gas contract ends?
Your supplier must give written notice of the contract end and the rates that will apply if you take no action, usually 60 to 90 days ahead. Ignore it and you roll onto deemed or out-of-contract rates from the day after the end date. When we reviewed a 15-school academy trust's portfolio, six schools had rolled onto deemed gas at an average of 8.5p per kWh against a market around 5.5p. A calendar reminder costs nothing and prevents all of it.
Does switching gas supplier interrupt my supply?
No. The gas arriving at your premises is identical whoever bills you for it, and the physical network is run by your gas transporter, not your supplier. A switch is an administrative transfer of the supply point registration: no engineer visit, no interruption, no change to the pipes or the meter. What changes is the price and the service, which is exactly what a competitive tender is for.
Meters and MPRN numbers
What is an MPRN?
The Meter Point Reference Number is the unique 6 to 11 digit number identifying your gas supply point. It is needed for any change of supplier or meter exchange, and it usually sits in the details-of-charges section of your bill. It identifies the supply point, not the physical meter, which has its own serial number. Our business gas meter guide explains every number and detail on the meter and the bill.
How do I find my MPRN?
Check a recent gas bill first. If you do not have one, use our free gas supplier and MPRN lookup, which finds your MPRN and registered supplier from a postcode, or call the Meter Number Helpline on 0870 608 1524 with your postcode and first line of address. If you have ever switched with Purely Energy, we hold your MPRN on file: call 0161 521 3400 and we will confirm it.
What is an IGT meter and does it cost more?
An Independent Gas Transporter owns and runs the gas network on many newer sites and developments, rather than one of the main gas distribution networks. IGT-connected premises usually pay a higher standing charge, and the surcharge is not always visible in comparison quotes until contract stage, which is one reason headline rates mislead. Check which network your MPRN sits on with our network operator lookup before comparing offers.
Do smart meters change my business gas rate?
Not directly: a smart meter does not alter your unit rate or standing charge. What it removes is estimated billing, by sending reads to your supplier automatically, which ends the drift-then-catch-up cycle and makes waste visible. SMETS2 meters keep their smart functionality across supplier switches, while older SMETS1 meters can revert to manual reads after a switch until their migration completes. Accurate data is the foundation of every gas bill reduction lever.
Suppliers
Who supplies gas to my business?
Your supplier's name is on your most recent bill, alongside your MPRN, contract end date and unit rate. No bill to hand? Our free business gas supplier lookup identifies the supplier registered to your meter from a postcode, or the Meter Number Helpline on 0870 608 1524 can tell you over the phone. Knowing the supplier and the contract end date is the starting point for any tender or bill query.
Which business gas suppliers can I choose from?
The UK business gas market has far more suppliers than the household names suggest. Our whole-of-market panel of 30+ includes Drax, EDF, British Gas, SSE, Total, Crown Gas & Power, Pozitive Energy, Corona Energy, SEFE and Yu Energy. We are not owned by any supplier and every offer is presented with each cost layer shown separately. Profiles of each, including their published deemed rates, are in our supplier directory.
What happens if my gas supplier goes bust?
Your gas keeps flowing: the physical network is run by the gas transporter, which is unaffected, and industry arrangements transfer customers to a replacement supplier so billing continues. The commercial risk is landing on default terms you did not choose, which behave like out-of-contract rates. Once transferred you are free to tender and move on your own terms, and supplier financial stability is one of the factors we weigh in every tender we run.
Should I go direct to a supplier or use a broker?
Going direct gets you one price from each supplier you have time to approach, priced with no competitive pressure. A whole-of-market broker tenders your consumption across the full panel at once and, done properly, shows you the wholesale cost, non-commodity costs, supplier margin and broker margin on every offer so you can judge the value. The differences, and the questions to ask either way, are set out in our guide to energy brokers versus suppliers.
Emergencies and moving premises
What do I do if I smell gas at my business premises?
Call the National Gas Emergency Service on 0800 111 999 immediately, day or night. The emergency service is run by the gas networks, not your supplier, and it is free. Open doors and windows, do not operate electrical switches, and follow the operator's instructions. Billing questions can wait; a suspected leak cannot. Your local gas distribution network and its details are in our network operator lookup.
What happens to the gas contract when I move business premises?
Gas contracts attach to the supply point, not to your business, so you cannot take a contract with you. At the new premises you inherit the site on deemed rates from the incumbent supplier until you sign a contract of your own, which makes moving day one of the most expensive times to do nothing. Tell your current supplier you are leaving, take meter reads at both sites on the day, and tender the new site before or as soon as you move in.
Who fixes a gas leak or supply problem, my supplier or the network?
The network. Great Britain's gas pipes are maintained by the gas distribution networks (Cadent, Northern Gas Networks, SGN and Wales & West Utilities) and the independent transporters, and they run the 0800 111 999 emergency service. Your supplier buys the gas and bills you for it; it does not own the pipes. So report physical supply problems to the network, and billing or contract problems to the supplier, with our business gas overview explaining how the two layers fit together.
VAT and levies
Do I pay VAT on business gas?
By default, yes, at the standard 20% rate. HMRC's VAT Notice 701/19 carves out a reduced 5% rate for three cases: energy used for domestic purposes as HMRC defines them (care homes, residential accommodation, holiday lets and dwellings), charity non-business use, and small supplies below the de minimis thresholds. Our guide to whether your business should pay 5% or 20% VAT on energy covers all three routes and the claim process.
What are the de minimis thresholds for gas VAT?
An average of no more than 145 kWh of gas per day, which is 4,397 kWh per month, at one premises. Below that, the supply is treated as domestic regardless of who buys it: your supplier should charge 5% VAT automatically and apply no Climate Change Levy, with no declaration form needed. Small sites should check a recent bill against these numbers, because the exclusion depends on the supplier's systems applying it correctly.
What is the Climate Change Levy on gas?
The CCL is an environmental tax charged per kWh on standard-rated business energy, at a main rate of 0.801p per kWh from 1 April 2026: £801 a year for every 100,000 kWh of gas. Domestic use, charity non-business use and de minimis supplies are excluded, and energy-intensive businesses with a Climate Change Agreement pay a discounted rate via the HMRC PP10 and PP11 forms. There is a plain-English definition in our energy glossary.
Question not answered here?
Send us a recent gas bill, one per site is enough, and we come back with a whole-of-market tender across 30+ suppliers. Or call 0161 521 3400: a real person answers.