Introduction
Are you a UK business owner trying to make sense of your energy bills? You’re not alone. Rising commercial gas prices, confusing contracts, and inconsistent services have made it harder than ever to find affordable and reliable energy. Whether you run a café, a manufacturing unit, or a retail shop, securing the right commercial gas deals can drastically reduce your overhead costs.
In this guide, we’ll walk you through everything you need to know about commercial gas in the UK—from types and rates to suppliers and FAQs. We’ll also show you how Price Buddy, a leading energy consultant, helps you find cheap commercial gas rates that match your business needs.
What is Commercial Gas?
Commercial gas refers to the gas supplied to businesses for heating, cooking, and operational energy needs. It is different from domestic gas due to the scale of usage, pricing structures, and metering requirements. Businesses often use significantly more gas than households and thus require specialized contracts.
While the gas itself (mainly methane) is the same, commercial gas prices depend on consumption volume, market trends, and contract terms. Businesses typically have a business gas meter to track their usage accurately.
Domestic vs. Industrial Gas
Domestic Gas:
Used in homes for heating, hot water, and cooking. Priced with VAT at 5%.
Industrial/Commercial Gas:
Supplied to small and large businesses, charged at 20% VAT, and often includes more flexible contracts.
Businesses can switch to industrial-grade gas supplies, especially if they have high operational demand. Understanding the difference ensures you're not overpaying or stuck in an unsuitable contract.
Important Factors About Commercial Gas
To choose the best gas contract, keep these crucial factors in mind:
Usage Levels: High usage may qualify for discounted rates.
Contract Type: Fixed vs. variable rate.
Supplier Reputation: Reliability and customer service ratings matter.
Billing Options: Monthly, quarterly, or seasonal billing.
VAT and Climate Change Levy (CCL): Businesses pay higher VAT, and some are also subject to CCL.
Smart Meters: Most businesses are required to have a business gas meter installed.
Key Aspects of Commercial Gas
Higher Demands:
Commercial establishments have larger energy needs compared to homes, requiring a greater volume and pressure of gas.
Various Applications:
Commercial gas is used in a wide range of applications, including cooking in restaurants, heating buildings, operating industrial equipment, and more.
Different Cylinder Sizes:
Commercial gas is available in larger cylinders (like 17kg and 33kg) for easier handling in businesses, and even larger ones (like 45.4 kg and 200 kg) for high-volume users.
Specialized Equipment:
Commercial kitchens often use specialized gas-powered equipment like commercial gas ranges, which are designed for heavy use and have features like griddles and multiple burners.
Industrial Gases:
Some commercial gas applications involve the use of industrial gases like nitrogen, oxygen, and hydrogen, which are often supplied in cylinders.
Pricing and Regulations:
Commercial gas prices can vary based on usage, and there are often different pricing structures for different levels of consumption. Regulations may also apply to the storage and handling of commercial gas.
Properties and Uses
Commercial gas has a wide range of applications, including:
Space and water heating in offices and shops
Cooking in restaurants and food chains
Powering manufacturing processes
Heating greenhouses in agriculture
These applications make it essential for a wide range of industries, including hospitality, retail, education, and healthcare.
Propane vs. Butane: Which is Better for Your Business?
Both are types of commercial LPG (liquefied petroleum gas), but each has its pros and cons.
Propane:
Lower boiling point: Works better in colder climates
Ideal for outdoor use and large-scale operations
Common in agriculture and catering
Butane:
Higher energy efficiency in indoor use
Better for portable heaters and smaller applications
Choosing the right type depends on your business size, usage, and environment. Many commercial LPG suppliers offer both.
How Can Price Buddy Support You for the Best Commercial Gas?
Price Buddy is a UK-based, top-rated energy broker platform that helps businesses of all sizes find the best commercial gas deals. With real-time market tracking and a wide supplier network, Price Buddy offers tailor-made solutions.
Services Offered by Price Buddy:
Free price comparison from over 20 energy providers
Contract negotiation and switching support
Help with smart meter installations and usage monitoring.
Expert advice on reducing your commercial gas cost
Assistance with both commercial propane gas and standard gas options
Why Choose Price Buddy?
5-star rated customer service
No hidden fees
Transparent contracts
Contact Us
Tel: 01509 462828
Address: 109 Coleman Road, Leicester, England
Email: hello@pricebuddy.co.uk
Website: www.pricebuddy.co.uk
Helps find the cheapest business gas prices and electric and gas business price bundles
"With Price Buddy, you don't just compare prices—you save time, reduce costs, and gain peace of mind."
Understanding Commercial Gas Rates
Commercial gas rates are influenced by:
Your location
Business size and usage
Contract length and type
Market demand and geopolitical events
Typical Costs:
Commercial gas rates can range from 4p to 10p per kWh.
Monthly bills vary widely: £100 for a small office to £5000+ for large factories.
Regulatory Oversight:
Governed by Ofgem (UK energy regulator)
Transparent pricing rules and switching rights
Taxation:
20% VAT, though charities and low-usage businesses may qualify for reduced rates
Smart Meter Mandate:
All businesses must switch to smart business gas meters to ensure accurate billing and real-time monitoring.
FAQs About Commercial Gas
1. What is commercial gas?
Commercial gas is energy supplied to businesses for heating, cooking, and industrial purposes. It differs from domestic gas in pricing, VAT, and usage volume.
2. How can I find affordable commercial gas?
You can compare providers using platforms like Price Buddy to find affordable commercial gas deals.
3. What is the difference between propane and butane in commercial gas?
Propane is better for outdoor and large-scale operations; butane is more energy-efficient indoors.
4. Are commercial gas prices fixed?
They can be fixed or variable, depending on your contract. Fixed rates offer predictable bills.
5. Can small businesses get commercial gas?
Yes. Many suppliers offer specific plans for small business gas needs.
6. What affects commercial gas rates in the UK?
Rates depend on usage, location, supplier, and contract terms.
7. How do I know if I'm paying the right commercial gas cost?
Use comparison tools like Price Buddy to evaluate your current rate against market options.
Conclusion
Navigating the commercial gas market in the UK can be overwhelming, but the right knowledge and tools make all the difference. By understanding contract types, pricing factors, and supplier options, you can significantly reduce your energy expenses.
Platforms like Price Buddy not only help you find the cheapest business gas prices but also ensure you get a contract that fits your business. Whether you're a startup or an established enterprise, choosing the right small business gas supplier can boost both efficiency and profit.
Take control of your commercial gas needs today—and start saving big.