Whether you own a tiny tea room or a group of gastropubs, you’ll need a good deal on business gas to ensure that you aren’t paying more than necessary for your energy. However, if you haven’t switched suppliers in a while, you’ll be paying more than necessary if you haven’t switched providers recently.
Although the procedure for switching business gas contracts is pretty much the same as the procedure for switching domestic suppliers, there are a few differences that you will need to be aware of. Before you switch, however, it is worth knowing a bit more about how business gas contracts work.
Read more to get answers to the top ten questions that may help you compare business gas prices and make a seamless, profitable switch.
Why Is Business Gas So Expensive?
Gas for residential and commercial use has seen price increases over the past several years due to gas providers passing on growing wholesale prices to their respective customer bases.
Because demand is higher than supply, wholesale prices have gone up. This issue has been made worse by the situation in Ukraine and by Russia’s decision to cut off gas exports through the Nord Stream pipeline that supplies Europe.
Are Business Gas Prices Capped?
The fact that there is no energy price cap for companies, in contrast to the situation in the domestic market, is one of the additional elements contributing to the rise in the price of gas for enterprises.
Despite this, on September 21, 2022, the Department for Business, Energy, and Industrial Strategy made public their intentions to assist businesses in lowering their monthly energy costs in response to the rising cost of wholesale energy.
Why Do Gas Prices Fluctuate?
Prices of gasoline sold to businesses go up and down as a direct result of shifts in the wholesale costs of acquiring gasoline. Various geopolitical and weather-related events can increase the wholesale price of gas. The energy supplier then passes these changes to the customer, whether that consumer is a home or a company.
When Can I Change Business Gas Suppliers?
You won’t be allowed to transfer business gas providers until the conclusion of your existing contract; however, you can give the present supplier notice of your desire to move within the period that was agreed upon when you initially signed the contract. On the gas statement for your company, you should be able to see the date when your contract will end. In that case, you might need to contact your service provider directly.
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If IGT Supplies My Business Gas, Can I Still Switch Suppliers?
Independent Gas Transporters (IGTs) are smaller networks linked to the larger ones and serve around one million premises in the United Kingdom. IGTs allow rural regions and new-build estates that otherwise wouldn’t have access to the National Grid to become part of the gas distribution network.
Even if your business gas comes from an IGT rather than the National Grid, you can still evaluate different suppliers and switch if you want. However, switching can require a little bit more time.
Because IGTs are so infrequently used, standing charges are typically more expensive than other charges. This might lead your entire tariff to be more expensive. If your supply originates from an IGT, your prices won’t include additional IGT costs; you’ll need to add them to the tariff price you see to get the whole cost.
Will I Need To Get a New Gas Meter Installed?
Unless there is a problem with your current meter or you are moving to a property that does not currently have a gas meter connection, it is highly unlikely that you will need to worry about installing a new one. However, if there is a problem with your current meter, you will need to install a new gas meter.
Your gas meter can be put either inside or outside of your home, depending on the layout of your property and where the gas supply is located. This decision is made during the installation process. If the gas lines do not enter the property, the gas meter will need to be installed outside. If this is the case, the company that services your gas meter will likely offer a box or other type of shelter for the meter.
What Is a Smart Meter?
A smart meter is an excellent tool for keeping track of how much natural gas your company consumes, and it also has the potential to reduce your monthly gas payment. You will receive more accurate bills since readings are collected automatically and sent directly to your provider through a mobile signal. In addition, you will only be charged for the energy you use in your home.
Because of the disruption that the coronavirus epidemic has produced, the plan that the government had to provide smart meters to all residences and small and medium-sized businesses was first postponed until 2024. Still, it has now been pushed back to 2025.
What Happens Once I Switch Business Gas Suppliers?
Your new provider will offer you further information, such as the dates and payment methods that have been agreed upon, as well as deliver specifics on when the switchover will occur. You are responsible for ensuring that the specifics are accurate.
On the day you transfer providers, your previous provider will request a reading from your meter so they can issue you an accurate charge for the services they provided.
Because commercial customers, as opposed to residential customers, do not often qualify for a “cooling off” period, you must ensure that you are completely content with your newly purchased tariff at all times.
Can I Get a Business Gas Tariff if I Work From Home?
If running a business from home, you won’t qualify for a commercial gas rate discount unless more than half of the energy you consume goes toward running your company. However, this level might differ from one provider to another; thus, you should get in touch with your provider to see whether or not a business tariff could help you save money.
How Much Money Could I Save by Switching Suppliers?
The amount of money you may save is contingent upon a variety of factors, including the size of your business, the size of its premises, the number of employees, and the overall energy efficiency of the business.