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While the bills are cheaper for most firms than electricity, finding a cheaper commercial gas quote for meeting your business needs will be time well spent.

For most, supplying gas can be a costly undertaking and with potentially large savings on offer, it’s worth researching the market first.

There are a variety of issues to consider when switching business gas supplier and it’s not just about cheaper prices.

Also, sourcing a new business gas supply is very different from sourcing gas provisions for our homes.

Undertake a business gas comparison

If you are looking to undertake a business gas comparison with a view to switching providers, then there are some issues to appreciate.

The first point is to understand that there are two main charges that will make up most of your firm’s gas bill. They are the standing charge and the unit cost.

The standing charge is the amount paid to the National Grid for delivering gas to your premises and this fee will vary between suppliers.

The unit cost is what you will pay for the actual gas you use and it’s measured in kWh (kilowatt-hours). This rate will also vary between suppliers.

The point to appreciate is that a potential new supplier may offer a lower unit cost, so you may believe it’s going to be a cheaper bill but the standing charge might be much more so there may not be any savings.

Understanding business gas prices per kWh

It’s this understanding of business gas prices per kWh that will also mean you’ll need to know the difference between a fixed-rate tariff and a variable rate.

With a fixed rate you agree on the price per unit you will pay for gas so if the market prices increase, your bill will not.

With a variable rate, the opposite happens and the price will vary with wholesale market fluctuations. If prices fall, then your bill will fall as well.

This is also a good point to highlight that if you haven’t switched for several years, then you may have been moved onto a ‘deemed’ rate, also known as an out of contract tariff, which tends to be higher than new customers will pay.

When it comes to sourcing a cheaper commercial gas quote, you should rely on the expertise and experience of the Business Utility Hub team who can search the entire market and find the deal that is right for you to lower your overheads.