Business gas prices per kWh in the UK

The headline numbers

• Official average: DESNZ's September 2026 Quarterly Energy Prices shows an average non-domestic gas price of 5.28p/kWh for April to June 2026, including the Climate Change Levy. Source: GOV.UK.
• Indicative new fixed deals (October 2026): from Moneysupermarket Business, 21 October 2026, whose page has some internal inconsistencies.

Size	Gas unit rate	Standing charge
Micro	8.8p/kWh	44.9p/day
Small	8.5p/kWh	49.5p/day
Medium	8.7p/kWh	67.3p/day
Large	8.6p/kWh	61.8p/day
Out-of-contract	12.0p/kWh	338.0p/day

The gap between the official 5.28p and these quotes is not a mistake. The official number blends all contracts, including large industrial users who buy in bulk, while the table shows what new customers were quoted at one point in time. Also, the official gas average covers April to June only.

How a business gas bill is built

Unlike electricity, gas is metered in cubic metres (or hundreds of cubic feet) and converted to kWh using a calorific value and correction factor shown on your bill. Use the gas units to kWh converter if your meter reads in units. Your bill then includes:

• Unit charge: kWh used × p/kWh.
• Standing charge: a daily fee, paid even if you use nothing. See business standing charges.
• Climate Change Levy: 0.801p/kWh from 1 April 2026, rising to 0.827p/kWh on 1 April 2027, unless exempt or below the small-use limit of 4,397 kWh a month (GOV.UK rates).
• VAT: 20%, or 5% for small supplies up to 145 kWh a day, or qualifying domestic or charity non-business use (HMRC Notice 701/19).

Worked example: a small restaurant

A restaurant uses 40,000 kWh of gas a year.

	Fixed micro rate	Out-of-contract
Units	40,000 × £0.088 = £3,520.00	40,000 × £0.12 = £4,800.00
Standing charge	365 × £0.449 = £163.89	365 × £3.38 = £1,233.70
Total before CCL and VAT	£3,683.89	£6,033.70

The default route costs roughly £2,350 more, driven mostly by the daily charge of £3.38 against £0.449. That is the quiet killer: a large standing charge is paid every day however little gas you burn. Try your own sums with the out-of-contract calculator.

VAT note: 40,000 kWh a year averages about 110 kWh a day (40,000 ÷ 365 = 109.6), under the 145 kWh daily limit for reduced-rate VAT, but the test is applied by your supplier to your actual use, so confirm with them. See the de minimis limit explained.

Seasonality: why winter and summer bills differ

Most firms burn far more gas for heating in cold months, so a fixed unit rate still produces large monthly swings in the bill. If your bill is based on estimates, winter underestimates can lead to a catch-up charge later; submit readings regularly. Wholesale prices also move over time, so the rate you are quoted depends on when you buy; we do not publish a seasonal pattern because it is not reliable from year to year. For forward-looking views see the price forecast.

"Special" or lower gas rates for small businesses

Marketing sometimes mentions special rates. The honest picture is that gas pricing depends on annual quantity, location and contract type, and there is no regulated "small business special rate". Treat any offer with that label as an ordinary product and compare it on total cost. Some businesses do qualify for reduced Climate Change Levy through a Climate Change Agreement, which is for energy-intensive sectors. Gas is also usually cheaper per kWh than electricity; see gas versus electricity cost.

What drives your gas price

• Annual use (AQ) and the wholesale market when you buy.
• Network and transport charges, which differ by area; some sites are on independent networks, see IGT.
• Contract type: fixed, flexible or out-of-contract.
• Broker fees, which must be shown in Principal Terms.
• Credit risk and payment method.

There is no Ofgem cap on business gas; see business energy price cap.

Checking a gas quote line by line

Before you accept a quote, put these questions to the supplier or broker and get the answers in writing:

• Is the unit rate fixed for the whole term? Ask whether any pass-through charges (for example transportation costs) can change during the contract.
• Does the quoted rate include the Climate Change Levy? Some quotes show it separately, some fold it in. Compare like with like.
• What annual use (kWh) was the quote based on? If the figure is higher than your real use, a broker's commission based on that estimate will be higher too.
• What is the total broker cost? If a broker is paid through your bills, the Principal Terms must show it in pounds and pence for the whole term.
• What happens at the end? Ask what rate applies if you do nothing, and how much notice you need to give.

Worked example: what CCL and VAT add

Take the restaurant above on the fixed micro rate, with a pre-tax total of £3,683.89 for 40,000 kWh. It averages 40,000 ÷ 12 = 3,333 kWh a month and about 110 kWh a day, so in quieter months it may fall under the small-use limits for both the levy (4,397 kWh a month) and reduced-rate VAT (145 kWh a day), while in winter it may not. The two ends of the range:

	All supply under the small-use limits	All supply above them
Climate Change Levy	£0.00	40,000 × £0.00801 = £320.40
Subtotal	£3,683.89	£4,004.29
VAT	5%: £184.19	20%: £800.86
Total	£3,868.08	£4,805.15

Your real bill will sit somewhere between, depending on how your supplier applies the limits month by month. Dividing your total annual gas cost by your annual kWh (here between about 9.7p and 12.0p) gives an all-in price per kWh to compare with last year. If you are VAT-registered and reclaim VAT, compare on the figure before VAT instead.

Next steps

1. Convert your meter reading to kWh and find your annual use.
2. Check whether you are on a fixed or default rate.
3. Request gas quotes with unit rate, standing charge, term and fees.
4. Consider whether dual fuel or separate contracts suit you.

Biz Energy is independent and not a supplier or broker.