Gas is an essential part of running many businesses, from heating premises to powering equipment and production processes.
But understanding what drives your bill, what affects prices and how to manage your costs isn't always straightforward.
This guide explains how business gas works, what you're paying for and the practical steps you can take to make informed decisions about your energy.
In this article:
Business gas doesn’t work like your household gas bill.
One crucial difference is that business gas users are not protected by Ofgem’s energy price cap, unlike domestic users.
Your business cannot afford to sit back and cruise along expecting a cap to keep your costs within a reasonable limit.
Ultimately, you need to make decisions that could affect the bottom line of your business for years to come.
We know that sounds daunting. That’s why Troo exists: to simplify business energy for you.
Your gas bill consists of multiple parts that can be broken into two major categories, with the rough split listed below:
The gas that powers your business takes up more than half of your bill. That shouldn’t be taken for granted.
The precise split will vary for different businesses, but it explains why your bill is so sensitive to wholesale market movements.
You are covering the cost of the gas purchased by your supplier.
The remainder of your bill covers a range of costs involved in supplying gas to your business. These are known as non-commodity costs - and they aren't always immediately clear.
Examples include:
The exact breakdown varies by business and contract. Some charges are fixed, while others depend on factors such as how much gas you use.
Understanding what you're paying for is a useful first step towards managing your energy costs.
Wholesale gas prices are influenced by supply and demand, while other charges also affect the total amount your business pays.
Several factors influence gas prices and the costs on your bill:
No business can control the price of wholesale gas. However, you can control how you respond to those changes and mitigate the impact of volatility.
You can control what you pay for your business gas by pulling two main levers:
Unlike eligible households on standard variable tariffs, businesses don't benefit from the Ofgem energy price cap.
If your contract ends without a new agreement, you may move onto out-of-contract or deemed rates, which are often more expensive than negotiated deals.
Business gas contracts often have strict renewal windows. You should mark the dates in your diary and prepare early to avoid missing out.
It’s helpful to understand your usage, current terms and business priorities before reaching your renewal window so you have an idea what you’re aiming for in advance.
Business electricity is complex. We get it. We can support you.
Troo exists to help businesses make sense of their energy needs. We simplify information and help you make smart decisions that manage costs and lead to real change.
We are not here to sell you a quick fix. We're here to understand what matters to you, offer clear advice, and take ownership of the hard parts, so energy becomes one less thing to worry about.
Book a free energy health check today for practical advice on business electricity, gas and water procurement, renewable consultancy and our ongoing management services.