Small business energy guide

Article posted

18th Aug 2022

Read time

7-13 min read


Mollie Pinnington

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As a business ourselves we understand how damaging the rising gas prices can be. Since prices are not going to be dropping any time soon, we have created this guide to help your business cope with energy bills, especially through the winter months.


Small business help

As a small business, you could already qualify for support with your energy bills. With the rise in Micro businesses, Ofgem brought in a new policy for pricing and treatment of small businesses. The energy regulators have seen a lot of smaller businesses overpaying for their energy bills; therefore, they have made sure it is as simple as possible for micro businesses to work with energy suppliers and consultants.

Not sure whether you are classed as a micro business? whilst this term varies from industry to industry, Ofgem usually classes a micro-business as one that uses less than 100,000 kWh of electricity per year and less than 293,000 kWh of gas per year.

If your business falls into this category, then you need to make sure energy suppliers are supporting you through your energy bill by:

  • sending out contracts in plain English. This means not using too many industry-related words that could be difficult to properly understand without a background in the energy industry.
  • give you as much information as possible about your contract, including clear start and end dates
  • Inform you that your contract is due to expire at least 30 days before



Business gas prices

With Russia continuing to reduce gas to Europe, prices are still on a steady incline. This is due to the EU having to find gas contracts in other places which creates more competition for those contracts and therefore hiring prices. Also, with Russia taking such a big chunk of gas from the market, the gas supply goes down increasing the price of the gas that is left as demand outweighs supply.

This is leading to many businesses seeing an increase in their gas contracts when they come to renew. This may lead your business to believe it is best to wait until gas prices drop. However, If your gas contract ends any time in the next 3 years, prices are going to continue going up as well as demand for gas. This means it is always best for you to look for a renewal on your gas prices as soon as your renewal window opens.

If you need help with your business finances in terms of energy costs and fuel prices, then get in touch today. Making sure you go with the right price, and supplier at the right time is important to ensure you do not overpay for your next gas contract.


Best business gas suppliers

At resolve, we work with over 20 of the UK's best gas and electricity providers. Some of our best gas suppliers are:

  • N power- N power offer a range of fixed and variable gas tariffs. They make switching easier for you at the end of your contract by not having any automatic rollovers. N power also offers you energy efficiency schemes to help you lower your bills. your business can also go on a fixed rate price for up to 3 years.
  • EDF- this company offers a range of energy contracts and tariffs with separate options for smaller and larger businesses. This makes sure that you don't overpay for your gas.
  • British gas- This company can offer fixed gas contracts for up to 3 years. British as well as being one of the big six energy suppliers, also own their gas pipe network.
  • Crown gas and power- This company is specified in just gas contracts. If you wanted to reduce your business carbon footprint crown would be the best option as they offer green gas contracts.


Understanding my gas contract

For business owners or anybody else that oversees the energy bills in the business, it is really important to make sure that you understand your gas contract to make sure you know exactly what you pay for. Business gas rates are cheaper than when you get a domestic quote, however, you need to remember your business also pays 20% VAT as well as additional charges and levies to comply with regulations.

Breakdown of chargers

  • Unit rate (kWh)- This is the amount that you pay per unit of gas you use. This will vary depending on your usage each month. Depending on what contract you get this is either fixed to the same price every month or on a variable contract the unit will vary each month depending on the energy market.
  • Daily standing charge- This is how much you pay for network chargers for the energy to be delivered to you.
  • Climate change levy- Businesses also have an extra charge each month. This is in place to discourage waste and inefficiency. There are ways of reducing this levy, for example, if you only use gas from outside the UK then you could be exempt from this.
  • 20% VAT- depending on the type of business you own; you will most likely have to pay 20% VAT on your energy rates. Businesses that use large amounts of energy could be offered a cheaper price.
  • Carbon reduction commitment- This is a carbon tax on CO2 emitted from your business. bigger companies are expected to register with this scheme and comply with it, this encourages them to then find ways to reduce CO2.


Energy efficiency

One way you can reduce your gas bills as a small business could be to increase the amount of energy sustainable practices within your business. To reduce your gas usage in your building there is a few measures you can take to reduce wastage and increase sustainability.

One way you could save on gas could be to swap your heat systems in your building to a heat pump instead of a traditional boiler. where your boiler uses gas to heat your building, heat pumps use electricity to convert cold air from outside into warm air. Depending on your business size this could save you up to 26% on your energy bills.

Other energy-saving techniques could include, ensuring that the right insulation has been put on your building. Ensuring you have this will mean that less heat will leak out of your building, meaning that you will need less gas to keep it heated during the colder months.

If you want to increase your energy efficiency strategies further read our in-depth guide on how to do that today.


Switching gas suppliers

As we said earlier gas prices are always going up and with so much volatility in the energy market at the moment if you are considering switching it's always better to do it now instead of waiting for prices to get even higher. when your current contract comes to an end you can stick with your supplier and just renew, however it might be best to shop around for a more competitive price as you could end up saving money.

To avoid wasting money and to get the best prices possible when you renew why not sign with us? At Resolve, we have a team of dedicated account managers that will not only make sure you are on the best contract for your business but also take care of renewals.


If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.

Looking to pay less on your energy bills?

Get a free quote today