Cheapest Business Gas Supplier 2026: 10 Rates Compared

Last updated: 6 November 2026

Which is the cheapest business gas supplier? There is no single cheapest: it depends on how much gas you use, because a low unit rate can be wiped out by a high standing charge. As listed on 6 November 2026, Bionic’s business gas page shows that its supplier panel for 1 to 12 October 2026 gave a small business using 22,500kWh a year an estimated £2,093 bill on average, with Yu Energy and Smartest Energy on the lowest unit rate apart from SEFE, at 8.1p per kWh (Yu with the lower standing charge, 49.3p a day against 86.0p), and ScottishPower on the lowest standing charge of 31.1p a day. SEFE’s 5.8p unit rate comes with a standing charge of 1,100.8p a day, so it only suits very large users. November 2026 averages from WeSave and Purely Energy range from 8.2p to 10.09p per kWh for business gas. Compare total yearly cost at your own usage. For a care home or an HMO with a communal boiler, that means getting quotes from several suppliers using the same MPRN, yearly kWh and contract end date. This SwitchSquid guide compares ten suppliers’ rates and explains what a care home or an HMO with a communal boiler should check. If you request quotes through this page, we may be paid by the supplier you choose; it does not change the price you are quoted.

Sources: Bionic business gas prices and Bionic supplier panel (1 to 12 October 2026), WeSave business energy prices, November 2026 (market data reviewed 2 November 2026), Purely Energy business gas rates, November 2026 and HMRC VAT notice 701/19, as listed on 6 November 2026.

Business gas suppliers compared: unit rates and standing charges

Bionic, a business energy broker, publishes the gas unit rates and standing charges its panel of suppliers quoted between 1 and 12 October 2026. The figures include Bionic’s maximum commission and are based on a business using about 22,223kWh of gas a year, so they are a guide to who is competitive rather than a price every business will get. Bionic does not say whether these rates include VAT or the Climate Change Levy, so treat them as a guide. The table compares unit rates and daily standing charges.

Apart from SEFE, Yu Energy and Smartest Energy share the lowest unit rate on the panel at 8.1p per kWh, with Yu’s standing charge lower at 49.3p a day against Smartest’s 86.0p, and ScottishPower has the lowest standing charge. SEFE has the lowest unit rate of all at 5.8p, but its standing charge of 1,100.8p a day is the highest on the panel, so it only suits very large users. Between the closest quotes, service, contract terms and your credit position may decide it.

Why the lowest unit rate is not the cheapest gas

Every business gas bill has two parts: a unit rate for each kWh you use, and a standing charge for each day you are supplied. Small users pay mostly standing charge; large users pay mostly unit rate. That is why the ranking changes with usage.

Take Yu Energy and SEFE on Bionic’s panel: Yu lists 8.1p per kWh and 49.3p a day, while SEFE lists 5.8p per kWh and 1,100.8p a day. A small site pays far more with SEFE, because the standing charge is billed every day whatever you use. Our guide to the business gas standing charge explains the daily fee in more detail.

The simple test: multiply each quote’s unit rate by your yearly kWh, add 365 days of standing charge, and compare the totals.

Business gas prices in November 2026

Bionic’s panel is from early October, and wholesale gas rose through October. Purely Energy says the wholesale price of gas for delivery over the next year was 6.83p per kWh at the 27 October 2026 close, up 81% on the April average of 3.77p. Two brokers have published November averages, though they use different size bands.

Treat all three as benchmarks: if a quote for your site is well above them, ask why, and if it is well below, read the contract terms carefully. WeSave also says sites using more than 50,000kWh get bespoke pricing.

What to send for a business gas quote

Suppliers price on your real usage and meter details. Send the same set to every supplier or broker so the quotes are comparable.

• MPRN: the meter point reference number on your gas bill.

• Yearly usage in kWh: from the last 12 months of bills or meter readings, not an estimate if you can avoid it.

• Contract end date and notice period: so the new contract starts the day after the old one finishes. Our contract end checker helps.

• Business details: legal name, company or sole trader status, site address and who can sign.

• VAT and levy position: whether some or all of the gas qualifies for 5% VAT and no Climate Change Levy, which matters for care homes and HMOs.

If a broker asks for your data, you will usually sign a letter of authority. Ask how they are paid and how many suppliers they cover.

Care homes and HMO communal boilers: what to check

Care homes and HMOs with a communal boiler are priced on the same unit rate and standing charge as any business, but the VAT and levy position can change the bill as much as the supplier does.

The care home. A home heating around the clock uses far more gas than the small business Bionic’s panel is based on, so it will be priced individually. At high usage the unit rate matters more than the standing charge, which is where a supplier such as SEFE, with a 5.8p unit rate and a high daily charge, can compete. Gas used for residents in qualifying residential care should carry 5% VAT rather than 20%. Our care home gas contract guide covers contract types and VAT, and our care home energy page has more.

The HMO. In a shared house where one boiler heats every room, usage may be closer to a small business, so the standing charge matters. HMRC’s VAT notice 701/19 taxes piped gas at the reduced 5% rate where supplies average no more than 145kWh a day, even on a business account, so check your bills and make sure your supplier has a VAT declaration on file. Our guide to HMO communal boiler gas contracts explains who pays and how to set up the contract, and the HMO landlord energy page has more.

How long should you fix business gas?

Once you know the cheapest supplier for your usage, the next choice is contract length. Wholesale gas rose sharply through October, according to Purely Energy. A longer fix gives budget certainty but locks you in if prices fall; a shorter one keeps you flexible but exposed if they rise.

• One year: suits businesses that want to review again soon and can live with a higher risk of a bigger renewal.

• Two years: a middle path, and the basis for WeSave’s November averages.

• Three years or more: suits care homes and landlords who value fixed costs over the chance of a lower price later.

Our guide on whether to fix business energy prices covers the trade-off in more depth. Whatever you choose, agree the new contract before the old one finishes, because out-of-contract and deemed rates are usually much higher.

How to find the cheapest business gas supplier for your site

1. Find your yearly kWh. Add up the last 12 months of gas bills.

2. Check your end date. Many suppliers let you agree a new contract months in advance.

3. Get several quotes on the same details. Same MPRN, usage, start date and contract length.

4. Compare total yearly cost. Include the standing charge, then check VAT and the levy are right.

5. Ask about commission. Get it in pence per kWh or as a yearly total.

6. Read the terms. Ofgem says there is no cooling-off period once you agree a business energy contract.

You can also ask Squid AI what to include in a quote request. Our business gas comparison page and guide to business gas and electricity suppliers cover the wider market.

Fit summary

• Small sites under about 25,000kWh: look for a low standing charge first; ScottishPower had the lowest on the panel at 31.1p a day.

• Medium sites up to about 65,000kWh: the unit rate starts to matter more; apart from SEFE, Yu Energy and Smartest Energy had the lowest rate on the panel at 8.1p per kWh.

• Very large sites: a low unit rate with a high standing charge, such as SEFE’s 5.8p per kWh and 1,100.8p a day, can suit big users, so ask for a bespoke quote.

• Care homes and HMOs: check VAT and levy relief before comparing, as 5% VAT rather than 20% changes the whole bill.

Important conditions

• Bionic’s figures are panel prices from 1 to 12 October 2026, include its maximum commission and are based on about 22,223kWh a year. Your quote will depend on your usage, meter, location and credit position.

• WeSave’s and Purely Energy’s November figures are indicative averages and use different size bands.

• Purely Energy’s figures exclude VAT and the Climate Change Levy; Bionic and WeSave do not say, so check how every quote treats VAT and the levy.

• Business energy contracts have no cooling-off period once agreed.

Final decision card

There is no single cheapest business gas supplier. On Bionic’s October panel, Yu Energy and Smartest Energy shared the lowest unit rate apart from SEFE, and ScottishPower the lowest standing charge, while SEFE’s low unit rate only suits very large users, and November averages from WeSave and Purely Energy range from 8.2p to 10.09p per kWh. For a care home or HMO, the right VAT treatment can matter as much as the supplier. Send every supplier the same MPRN, yearly kWh and end date, compare total yearly cost, and fix for a length that suits your budget. Our form asks for exactly these details.

FAQ

Who is the cheapest business gas supplier in the UK?

It depends on your usage. On Bionic’s October 2026 panel, Yu Energy and Smartest Energy shared the lowest unit rate apart from SEFE, at 8.1p per kWh, and ScottishPower the lowest standing charge at 31.1p a day, while SEFE’s 5.8p unit rate suits only very large users. Compare total yearly cost at your own kWh.

How much is business gas per kWh in November 2026?

WeSave’s November averages are 9.89p to 10.09p per kWh on 2-year tariffs, and Purely Energy’s are 8.2p to 9.2p before the levy and VAT. Larger users usually pay less per kWh but a higher standing charge.

Why is my business gas standing charge so high?

Standing charges vary widely between suppliers, from 31.1p to 1,100.8p a day on Bionic’s panel. Some suppliers price low unit rates with high standing charges, which suits big users but costs small sites more.

Can a care home get 5% VAT on gas?

Gas used for residents in qualifying residential care should carry 5% VAT rather than 20%, with no Climate Change Levy on the qualifying share. Your supplier needs a VAT declaration on file to apply it.

What VAT should an HMO communal boiler pay?

Gas for domestic use qualifies for 5% VAT, and HMRC’s VAT notice 701/19 also applies the reduced rate to piped gas supplies averaging no more than 145kWh a day. Check your communal boiler’s average daily use on your bills, and ask your supplier to apply the right rate.

Is there a cooling-off period on business gas contracts?

No. Ofgem says there is no cooling-off period once you agree a business energy contract. Check the price, length and end terms before you sign.

When should I start comparing business gas quotes?

Start several months before your contract end date, as many suppliers let you agree a new contract well in advance. That gives you time to compare and avoids out-of-contract rates.