Are you looking for the best business gas prices? In 2025, UK businesses are navigating a complex energy market, with gas prices significantly impacting operational costs. This year has seen a shift in gas prices, influenced by various economic factors. Understanding these changes is crucial for companies seeking the most cost-effective energy solutions.
Here are the business gas prices and features from various UK suppliers, presented in a series of tables for clarity.
Average business gas prices by size (January 2025)
| Business Size | Annual Consumption (kWh) | 2023 Avg Rate (p/kWh) | 2024 Avg Rate (p/kWh) | 2025 Avg Rate (p/kWh) |
|---|---|---|---|---|
| Small | 10,000 to 50,000 | 5.1 | 16.3 | 9.0 |
| Medium | 50,000 to 100,000 | 3.7 | 15.8 | 8.5 |
| Large | 100,000+ | 4.3 | 15.6 | 8.3 |
Business gas prices per kWh and annual costs (January 2025)
| Business Size | Average Usage (kWh) | Unit Price (p/kWh) | Annual Cost (2-year contract) |
|---|---|---|---|
| Very Small | 5,000 | 12.6p | £796 |
| Small | 15,000 | 10.5p | £1,764 |
| Medium | 25,000 | 10.2p | £2,774 |
| Large | 50,000 | 10.1p | £5,325 |
| Very Large | 100,000 | 8.8p | £9,377 |
Cheapest business gas suppliers (25,000 kWh usage annually)
| Supplier | Price per kWh | Daily Standing Charge | Annual Cost |
|---|---|---|---|
| Smartest Energy | 9.1p | 25.1p | £2,358 |
| Scottish Power | 9.0p | 30.6p | £2,371 |
| British Gas Lite | 10.3p | 45.2p | £2,728 |
| British Gas | 10.9p | 75.4p | £2,989 |
| Valda Energy | 10.1p | 39.8p | £2,664 |
| Total Gas & Power | 10.5p | 152.2p | £3,180 |
| EDF | 10.9p | 25p | £2,809 |
Features of select UK business gas suppliers
| Supplier | Key Features |
|---|---|
| British Gas | Fixed gas prices, various plan lengths, caters to all business sizes, including multi-site. |
| Scottish Power | Range of plans with fixed/variable prices, no tie in or exit fees, energy efficiency advice. |
| npower | Competitive rates, fixed-term contracts, caters for multiple site businesses, UK based support. |
| SSE | Choice of energy contracts, fixed-rate plans, tracking contracts, flexible plans for larger businesses. |
| EDF Energy | Supplies to SMEs and large businesses, range of tariffs, online management, discounts for direct debit. |
| E.ON | Competitive plans, fixed-rate options, terms up to 4 years, online management, energy advice. |
These tables provide a detailed view of the business gas market in the UK, highlighting the diversity of prices and features offered by different suppliers.
2025 business gas price trends
Compared to the stark increases in 2024, 2025 has brought some relief to businesses. Small businesses (consuming 10,000 to 50,000 kWh) are now seeing average rates of 9.0 p/kWh, a decrease from 2022’s 16.3 p/kWh.
Similarly, medium businesses (50,000 to 100,000 kWh) have seen rates drop from 15.8 p/kWh in 2022 to 8.5 p/kWh. For large businesses (100,000+ kWh), rates have reduced to 8.3 p/kWh.
Comparing gas prices by business size
Businesses of varying sizes have different gas needs, and the market reflects this. Very small businesses (5,000 kWh) face higher unit prices of 12.6p/kWh, while very large businesses (100,000 kWh) benefit from lower rates at 8.8p/kWh. It’s essential for businesses to consider their consumption levels when seeking the best deals. See business energy comparison.
Cheapest business gas suppliers in 2025
The most competitive rates for a business consuming 25,000 kWh annually are offered by suppliers like Smartest Energy (9.1p/kWh) and Scottish Power (9.0p/kWh).
However, it’s important to consider the daily standing charge, which can significantly impact the overall cost. For instance, Total Gas & Power offers a rate of 10.5p/kWh but with a high standing charge of 152.2p, leading to a higher annual cost.
Business gas supplier features and plans
Suppliers like British Gas and SSE offer a range of plans, including fixed-rate and variable options, catering to different business needs. EDF Energy and E.ON provide competitive plans with fixed-rate options, suitable for businesses looking for price stability.
Navigating the market
The key to finding the best gas deal lies in understanding your business’s specific energy needs and consumption patterns. Comparing prices and features offered by various suppliers is essential. Companies should also consider the length of contracts and potential benefits like energy efficiency advice or smart metering.
Conclusion – Finding the best business gas prices
2025 presents opportunities for UK businesses to secure better gas deals. By staying informed and strategically assessing options, companies can navigate the dynamic energy market and find cost-effective solutions that align with their specific needs.
Remember, the cheapest rate per kWh might not always translate to the lowest overall cost, so consider all aspects, including standing charges and contract terms, when making your decision.
FAQ about best business gas prices
Business gas prices are influenced by global energy markets, supply and demand, geopolitical events, and government policies.
Prices often vary based on consumption levels, with larger businesses generally benefiting from lower per-unit costs due to economies of scale.
Yes, particularly larger businesses may have the leverage to negotiate rates, especially when they have higher consumption levels or multiple sites.
Fixed plans lock in a rate for a set period, offering price stability. Variable plans fluctuate with market prices, which can be advantageous or risky depending on market trends.
Yes, many suppliers offer green energy options, allowing businesses to opt for environmentally friendly gas sources.
Implementing energy-efficient practices, negotiating better rates, and regularly comparing supplier offers can help reduce gas bills.
Not necessarily. It’s important to consider the overall cost, including standing charges and contract terms, not just the rate per kWh.
Gas prices can change frequently, influenced by market conditions and other external factors.
Businesses should consider factors like price, contract length, customer service, and any additional services offered by the supplier.
The process can vary, but many suppliers aim to make switching as seamless as possible. It’s advisable to check the terms of your current contract for any exit fees or other conditions.