In short
Business gas is natural gas supplied to commercial premises through a gas transporter's pipes under a contract with a licensed supplier. Each supply point has an MPRN. Gas meters record volume, which is converted to kWh for billing, and the bill combines a unit rate, a daily standing charge, Climate Change Levy and VAT.
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How business gas is supplied
Mains gas reaches business premises through a chain you mostly do not see:
- The supplier buys gas, sells it to you, sends the bill and holds your contract. You choose the supplier.
- The gas transporter owns and runs the pipes to your premises. In most areas that is the regional gas distribution network; some newer sites are on an independent gas transporter's network. You do not choose it.
- The meter records how much gas passes through. It is identified by a meter serial number and the supply point by an MPRN.
This site covers mains (piped) natural gas. Bottled gas and LPG are bought differently, from different companies, and are out of scope here. Business gas typically goes on space heating, hot water, cooking and process heat, so use at many sites peaks in winter. That seasonal pattern matters when a supplier estimates your annual consumption.
Business gas meters and the MPRN
Every gas supply point has an MPRN (Meter Point Reference Number), printed on your gas bill and sometimes on or near the meter. It is different from the meter serial number, which identifies the physical meter. Suppliers need the MPRN to quote and to switch; our MPRN number guide shows where to find it.
Business gas meters come in the same broad types as at home, scaled up for larger loads:
- Standard gas meters, read manually or by the supplier
- Smart gas meters, which send readings automatically. See smart meters for business.
- AMR gas meters, which send readings remotely and are common on larger commercial sites
Half-hourly metering and settlement are electricity arrangements, so gas has no half-hourly meter equivalent in the way electricity does. Gas meters record volume in cubic metres or, on older imperial meters, cubic feet. Your supplier converts that volume into kWh using the calorific value of the gas and a correction factor for temperature and pressure, in the way set out in the Gas (Calculation of Thermal Energy) Regulations 1996. Your bill shows the figures used. Read more in our business electricity and gas meters guide.
Tariff types for business gas
Business gas is sold on the same tariff structures Ofgem describes for business energy generally, though suppliers may not offer all of them:
- Fixed-rate: unit rate and standing charge fixed for the term. See fixed rate business energy.
- Variable-rate: prices can move during the contract.
- Flexible (structured): gas bought in tranches over time, for large users. See flexible energy contracts.
- Rollover or evergreen: an automatic renewal, usually for 12 months, possibly at a higher rate.
- Out-of-contract and deemed rates: what applies if a contract ends without a new one, or you move in without a contract. Ofgem says these are usually more expensive.
Multi-rate (day and night) tariffs are an electricity feature and do not apply to gas. Compare every type on our business energy tariffs page.
What is on a business gas bill
A business gas bill is simpler than a half-hourly electricity bill, but every line is worth checking:
| Bill line | What it means |
|---|---|
| MPRN and meter serial number | Identify the supply point and the meter being billed |
| Meter readings | Opening and closing readings, marked actual or estimated |
| Conversion to kWh | Volume used, calorific value and correction factor, giving kWh |
| Unit rate | Price per kWh of gas used |
| Standing charge | A fixed daily charge, paid whether or not you use gas |
| Climate Change Levy | An environmental tax per kWh on most business gas use |
| VAT | Standard rate for business use unless the use qualifies for a lower rate |
The Climate Change Levy main rate for gas has been the same per kWh as the rate for electricity since 1 April 2024. The rates are published on GOV.UK and usually change on 1 April; see Climate Change Levy for business. If you supply a charity's non-business activity, a home within the premises, or use only small amounts of gas, part or all of the supply may qualify for a lower VAT rate: see reduced rate VAT on business energy. The temporary zero rate of VAT in Great Britain (1 October 2026 to 30 June 2027) covers qualifying-use electricity only, so qualifying-use gas stays at the reduced rate.
Standing charges and unit rates are explained in more depth on business energy standing charges, and a full bill walkthrough is in business energy bills explained.
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Business size and gas protections
Ofgem's business size bands use gas consumption as well as staff and turnover. You count as a microbusiness if you have fewer than 10 employees and turnover or balance sheet total of no more than 2 million pounds, or use up to 293,000 kWh of gas a year. Ofgem describes a small business as one with 11 to 50 employees and turnover up to 6.5 million pounds or a balance sheet up to 5 million pounds, or using up to 500,000 kWh of gas a year. Some suppliers use either your size or your consumption to decide which contract or protections apply.
Microbusinesses get extra protections: the supplier must give clear contract information and renewal price information before the contract ends, and on evergreen contracts must limit termination notice to 30 days. Micro and small businesses can get help from Citizens Advice and take unresolved supplier complaints to the Energy Ombudsman. Ofgem is clear that there is no cooling-off period after you agree a business energy contract, whatever your size.
Green gas
Some suppliers offer green gas tariffs. The gas in the pipe is the same mix for everyone, so a green gas claim rests on certificates: Renewable Gas Guarantees of Origin, issued when biomethane is injected into the grid, or carbon offsets. Our green gas for business page explains the difference and the evidence to ask for.
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Getting a business gas quote
Fidelity Energy gets business gas quotes from the suppliers it works with. Have ready:
- A recent gas bill for each site
- The MPRN for each supply point
- Your annual gas consumption in kWh, or twelve months of bills to cover the winter peak
- Your current contract end date and notice terms
- Whether you also want electricity from the same supplier
Then contact us. We help you pull the details together and introduce you to Fidelity Energy, and we can stay your point of contact. If you need electricity too, see business electricity and dual fuel for business. Moving into new premises? Read business energy when moving premises first. For comparing or switching gas suppliers, see our sister site on switching business energy supplier.
More on business gas
How Forever Communications helps with business gas and electricity
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements with the suppliers on its panel. We are not an energy supplier, and neither is Fidelity Energy.
- Make sense of your bills: we can help you read unit rates, standing charges, meter details and the other costs on your invoices
- Like-for-like quotes: we help you gather your meter numbers, consumption and contract end dates so suppliers quote on the same basis
- The right tariff type: we can talk you through fixed, flexible and pass-through contracts, green electricity and green gas options before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates when you move premises
- Your choice: you decide which quote, if any, to accept; prices and terms are set by the suppliers and confirmed at quote, including the broker commission
We work with offices, shops, hospitality, landlords, manufacturers and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
What is business gas?
Business gas is mains natural gas supplied to commercial premises under a business contract with a licensed supplier. It travels through a gas transporter's pipes, is measured by a meter with an MPRN, and is billed in kWh with a unit rate, a standing charge, Climate Change Levy and VAT.
Do businesses pay climate change levy on gas?
Most do. Climate Change Levy is charged on gas used by industrial, commercial, agricultural and public-service businesses, and it appears on the gas bill. The main rates do not apply to domestic use, a charity's non-business use or businesses using only small amounts of energy, and Climate Change Agreement holders get a reduced rate.
Where do I find my MPRN?
Your MPRN is printed on your gas bill and is sometimes on or near the gas meter. If you cannot find it, your current supplier can give it to you.
Is there a half-hourly gas meter?
No. Half-hourly metering and settlement apply to electricity. Gas meters record volume, which the supplier converts to kWh, and larger gas sites often have AMR meters that send readings remotely.
Can I get business gas and electricity from the same supplier?
Often, yes. That is called dual fuel. You usually still have two supply points and often two contracts, and not every business supplier offers both fuels. See our dual fuel for business page.
Still have a question about business gas?
Ask us and a member of our team will reply by email.