Key considerations when choosing a good business gas supplier

Tuesday 28th Dec 2021 |

Any business owner desires to mitigate the risks associated with paying huge energy prices. This is the reason why you need to compare gas suppliers to make sure that you find the best deal for your business. Many business brokers, such as Utility Bidder offer comparison tools to help you to get customized quotes from energy suppliers. 

In this way, you can make informed decisions that are based on gas suppliers’ support, cost, and contract length. The business stability of the gas supplier is also a good consideration. This article explains the key considerations when choosing a good business gas supplier.

Choosing a good business gas supplier – Charges

There are usually two charges that are on your business gas bill. There is the unit cost that can be measured in kilowatt-hours. You pay this cost for using the gas, and it’s a fixed rate. Remember that gas bills can vary depending on the amount of energy usage. 

The other charge is called the standing charge. You need to pay this charge to cover for service and maintenance charges that need to be paid. In other words, this is also a fixed price that covers the expenses of getting gas to your business premises. Because this charge can vary depending on where you live, it tends to vary from one gas supplier to another. Therefore, if you want to save cash on gas bills, then make sure that you consider the standing charge and unit cost.

Choosing a good business gas supplier – Your rate

There is a fixed rate which refers to the cost per unit of gas, so any price hikes cannot affect your gas bill. Your price per unit can remain the same, but it can still vary depending on gas usage which tends to change monthly.

A fixed-rate is quite a common option for many businesses. This is because it offers you protection against gas price fluctuations on the market. Keep in mind that wholesale prices of gases can be determined by several factors, such as government taxes, supply and demand, and regulatory fees. Also, fixed-rate tariffs can be available for up to a three-year contract basis. Ideally, the longer the gas contract, the higher the gas tariff.  

You can also have a variable rate that is linked to fluctuations that are in the wholesale market. This means that the cost of gas used doesn’t have a stable rate during your contract period. As a result, the price you pay for the gas tends to vary monthly.  

 A deemed rate is a rolling gas deal that allows you to be on out-of-contract tariffs. This means that you can be paying more money than you need to for your gas. The stability that the contract gives you doesn’t protect you, and the gas rates can be determined by wholesale market fluctuations and the amount of gas you use.

Lastly, there is a rollover rate that runs between a contract expiring and before the start of another one, but these rates can be very high. It’s worth noting that a rolling contract is designed for a short-term solution, so it can run up to 12 months.

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