Businesses can find themselves paying more for gas especially if they are on a variable tariff and haven’t found time to make the switch. Once you know how much energy is being used, you can implement methods to save on the cost and become energy efficient. 

Compared to other prices of utility companies and researching what they are paying for their gas and electricity can help you find the best deal for your business. 

Comparison websites have been designed to offer you the best available offers from utility companies so that you are using more while paying less. 

What Does Kilowatt Per Hour Mean?  

Before working out what your average business gas costs might be, it is important that you understand what the kilowatt per hour means. 

The kilowatt per hour measures the unit of gas used per hour, this means suppliers will charge you for the units you used over the business hours in a day. 

What are the Average Business Gas Prices? 

Depending on the needs of the business, utility companies often provide tailored packages to meet the needs of each business as every business requires a different gas and energy usage to function. 

This is especially true, even for businesses who are in the same industry as each business methods and practices of manufacturing can differ greatly. 

The unit price and the standing charge is the fee that determines how much you spend on the gas bill as they change constantly. 

In short, a standing charge is the fee that covers the transportation amount of the gas being distributed to your business on a daily basis despite how much gas you use per day. If you decide to not pay any standing fee, you will have to sign up for a no standing fee charge but will have to pay higher tariffs.

The unit price is the cost of each unit of gas that is used per kWh. 

To get the best deals, you could take the cheapest offer for both gas and energy; however, there are a lot of other factors that can contribute to these prices. 

These factors include: 

  • The size of your business premises – A larger business will pay more for gas prices then a smaller business. However, the size of the business refers to usage when suppliers work out the rates that each business needs to pay. This means that a smaller business can pay more gas in comparison to a larger business.
  • The location of the business – This is one of the biggest contributors to the cost per unit of gas. This depends on the distance from the power plant to where your business is located, also you have to take into account how old the pipes and gas lines are that are feeding gas into your business which might need maintenance from time to time.
  • Business energy taxes – VAT is included in your gas bill. This is calculated at 20% and the CCL (Climate Change Levy) is included which is an additional government fee that has been included in the gas price.

Extra factors include the number of employees present, how energy efficient the business is and the energy usage patterns. 

According to UKppower these are the average business gas prices. 

  • Micro Business – An annual usage is between 5 000-15 000, the price per kWh is 4.0p and the standing charge is 32.0p which makes the annual average cost £516.
  • Small Business – Annual usage is between 15 000- 30 000, the price per kWh is 3.8p and the standing charge is 30.0p which makes the annual average cost £965.
  • Medium Business – Annual usage is between 30 000- 65 000, the price per kWh is 3.5p and the standing charge is 28.0p which makes the annual average cost £1 502.


Not all cheap tariffs are great deals to begin with. It is important to compare utility companies and find the one that has the best deal suited to the amount of gas you are going to use on a daily basis and how much the extra fees are going to total the service for. 

To be sure you are getting the right amount of gas for your business, keep track of the business usage and change some methods or practices to be able to save on the consumption of gas if possible. 

Do not hesitate to constantly compare gas prices for your business to ensure that you are saving on your utility services.