If you are looking for business gas, its suppliers, and the contract price, you are landed on the right platform. Here we will study all such information related to business gas in detail. We will also put light on how household and business gas tariffs are different from each other and which one is cheaper in price. This helps you to make a better decision about which one to choose.
Let’s first understand about business gas in detail and step by step move to each query –
What is business gas?
The gas suppliers placed gas tariffs for business places to keep up with the demand of the commercial consumer. Business gas is different from domestic gas. However, it is cheaper as compared to domestic gas, but it also depends on your requirement.
The requirement of gas largely depends on the size of your business. If you are running a business on a large scale and require much gas, then the overall cost goes up.
What is the business gas contract?
It is essential to understand the gas contract thoroughly so that you don’t have to regret your decision later on. To get a better understanding of the gas contract, you need to be aware of some terms. Let’s get a grip on it first-
Unit rate
It is the rate of gas per kilowatt-hour (kWh). The business consumer has to pay for business gas according to the unit rate per hour charged by the supplier. The unit rate charges are cheaper if your business required low gas consumption. If your business consumes gas over a certain limit, then it is obliged to pay 20% VAT in addition to their bills. But a charity unit that offers residential services doesn’t have to pay VAT on their bills.
Billing period
It is the time gap between each bill. At the time of settling the contract, you can negotiate the time period with the business gas supplier. Generally, small business enterprises prefer shorter billing periods, i.e., monthly or quarterly, to keep a close check on their expenditure.
Standing charge
It is the price charged by business gas suppliers for the maintenance of your energy meter. While signing the contract, it is stated on the top of the unit rate. It is a fixed cost the business enterprise has to bear in addition to the unit rate.
Climate change levy( CCL)
Climate change levy is charged to businesses to discourage the emission of carbon gas. This levy charge increases each year, and you have to update with it. But some business is not obliged to pay climate change levy such as charity businesses, NGO, businesses which are with 20%VAT. Apart from this, the business units which don’t use much gas have to pay only reasonable charges.
If business consumers consume a high amount of gas upto a certain limit, they have to sign a climate change agreement(CCA).
Final words
This is the explanation of business gas and contact terms. As a potential consumer of business gas, you must be aware of such details.
