Gas
Business Gas Prices Explained
How commercial gas is priced, and what changes the number a supplier quotes you.
6 min read · Updated 29 July 2026
Commercial gas pricing follows a similar structure to electricity, though the mix of costs is different. If your business runs kitchens, boilers or industrial heating, gas is often the larger of your two energy bills, so it's worth understanding what's driving the rate.
How the unit rate is built
Your gas unit rate (p/kWh) reflects the wholesale cost of gas hedged for your contract term, plus transportation charges for moving gas through the National Transmission System and local distribution networks, plus supplier operating costs and margin.
Seasonality and volatility
Wholesale gas prices tend to be more volatile than electricity, particularly around winter demand spikes and events affecting supply. This is one reason the timing of when you fix a contract can matter as much as who you fix it with — the same supplier can quote very different rates a few weeks apart.
What's on the bill besides the unit rate
Beyond wholesale and network costs, a gas bill typically includes:
- Standing charge — fixed daily cost regardless of consumption
- Climate Change Levy — unless your business is exempt or reduced-rate
- VAT — standard 20%, or 5% for qualifying businesses and usage levels
Ready to see your own options?
More in Gas