Combined Business Gas and Electricity

Combining your gas and electricity to receive your business energy from a single supplier can often be the cheapest way to power your business. The term ‘dual fuel’ is often associated with combined gas and electricity deals, although this is more common for the domestic market. 

The range of commercial dual fuel deals are fewer, though that’s not to say combined deals aren’t available to business customers. Buying your business energy on a combined tariff means you’ll be receiving your gas and your electricity from the same supplier and could save you money, as well as time and hassle since you’ll only need to deal with one company.

Read on to learn more about combined energy for your business, or click a link for the information you’re after:

Business gas and electricity suppliers in the UK

There are many options for who to choose as the supplier of your business gas and electricity, and while the first thing you might consider is cost, there are other things you may want to base your decision on. For example, how good is their customer service? And how green is their approach to generating power?

Unlike when you’re sorting out energy suppliers for your home, businesses get to negotiate their energy rates. This means that it’s worth your time to shop around to make sure you’re getting the best contract terms. There are even business gas and electricity brokers who negotiate business energy contracts for a living.

Committing to a fixed-rate contract with one energy supplier is your best route to getting the best possible deal on price.

The big six suppliers for business and domestic energy in the UK are:

  1. British Gas
  2. EDF Energy
  3. E.On
  4. nPower
  5. Scottish Power 
  6. SSE

Combined, these six suppliers own a massive 81% of the UK energy market but you shouldn’t automatically assume that you’ll get the best price or service from them. 

In recent years, several new, independent energy suppliers have entered the market and their fresh approach to doing business is working.

Don’t rule out the possibility of getting a better price by going to a less well-known company for your business energy. You may find that avoiding the big boys not only saves you money but reduces your carbon footprint too. 

Independent energy suppliers are working extra hard to win over the business market by making their service the best it can be and getting competitive on both their prices and their ethics. 

We work with independent commercial energy brokers who can help you find the right energy deal for your business. They will assess your gas and electricity business usage and compare combined deals from all the energy suppliers in the UK to get you a competitive deal.

Make an enquiry and we’ll connect you with an expert energy broker for a free, no-obligation chat.

Is there an average cost I should expect to pay?

There are several factors which will affect the price you may have to pay for your business gas and electricity. Energy quotes can vary greatly between suppliers, but understanding what energy suppliers will consider when costing a quote can help give you some idea of what you might expect.

When quoting for your business, energy suppliers will take into account:

  • The size of your business
  • The industry you operate in
  • The average annual energy consumption of your business
  • The location and number of sites your business operates in
  • The number and types of fuel you’re being quoted for
  • Your current supplier
  • The length of contract you want

The table below sets out the rough sums for usage and costs you might expect to pay for business electricity:

Business SizeAverage Annual Use (kWh)Average Price (kWh)Daily Standing ChargeAverage Annual Price
Micro 5,000 – 15,00013.0p – 13.5p26.0p – 30.0p£650 – £1,800
Small 15,000 – 25,00011.8p – 13.0p24.0p – 26.0p£1,900 – £2,900
Medium25,000 – 50,00011.3p – 13.0p21.0p – 23.0p£3,300 – £5,000

The following table illustrates the rough sums for the usage and costs you might expect to pay for business gas:

Business SizeAverage Annual Use (kWh)Average Price (kWh)Daily Standing ChargeAverage Annual Price
Micro 5,000 – 15,0004.1p – 4.5p23.0p – 26.0p£300 – £700
Small 15,000 – 25,0003.8p – 4.0p21.0p – 22.0p£800 – £1,400
Medium25,000 – 50,0003.5p – 3.7p18.0p – 20.0p£1,500 – £2,000

What other factors can influence the price of commercial fuel?

The wholesale cost of gas and electricity can affect the price passed on to your business. An increase in taxes or environmental levies, both of which are entirely out of your – and the supplier’s – control, can also influence the price you will be charged for your energy.

Large businesses with multiple locations and high energy use can often be better off with a multi-energy, commercial dual fuel deal because it can be more efficient in both time and money.

Large energy users might also have to adopt half-hourly metering which provides accurate meter reading to your energy supplier every 30 minutes. This is an industry requirement for businesses with a maximum demand of 100kw in any 30-minute period.

With so many variables in the mix when assessing which business energy supplier to go with, it makes sense to get advice from an expert. We work with whole-of-market commercial energy brokers who can take you through your options and make sure you’re on the best deal available.

How do I find the best business energy deals?

To ensure you get a good deal on your business energy, seek advice from an independent energy broker. A whole-of-market broker with access to every energy supplier in the UK will have knowledge and experience about how suppliers operate and the various factors which influence price. They will know which supplier is most likely to offer you the best deal.

While it’s possible to compare business gas and electricity deals online, comparison sites tend to favour organisations who pay them to list their name above their competitors’. As well as this obvious flaw, you won’t always see realistic results due to the variety of factors influencing the price you’ll actually be able to secure.

To speak with an independent business energy broker, get in touch and we’ll introduce you to one of the expert brokers we work with for a free, no-obligation business energy health check.

How to switch business gas and power

Changing your business energy supplier should be straightforward, but the following five steps should help you avoid overpaying for your business power:

  1. Check the termination dates on your current energy contract
  1. Officially terminate your current contract in writing via email, letter or fax inside the fixed notice period, which you’ll find stated in your contract
  1. Get business gas and electricity quotes either directly or through an energy broker who will take care of all the legwork and make sure you’re getting the best available deal
  1. Sign the new contract from the supplier of your choice and return it, either electronically or physically
  1. Be ready for potential credit checks your new supplier may want to carry out. They may require this to assess the risk of non-payment. If you have recently had a change of tenancy agreement, this could be problematic as such events tend to be more likely to lead to a rejection

Using an independent energy broker can help make the switch go smoothly… 

We’ll match you with your perfect financial advisor – for free.