Is Your Kitchen Overpaying for Gas? Here’s How to Check
Wholesale gas prices are notoriously volatile. For hospitality businesses – restaurants, pubs, hotels, cafes – gas is often one of the biggest lines on the bill, with ovens, ranges and hot water running for most of the trading day. What you pay can vary significantly depending on when you fix your contract and how actively you manage your procurement. If your gas contract has lapsed, or you’ve never compared rates against the wider market, there’s a strong chance you’re paying more than you need to.
Why gas prices vary so much
Two charges make up most gas bills: the unit cost (what you pay per kWh used) and the standing charge (a fixed daily rate regardless of usage). Wholesale costs, distribution costs, and environmental taxes such as the Climate Change Levy all feed into these figures, and because wholesale prices move constantly, so does what suppliers can offer.
This volatility is exactly why many businesses choose fixed tariffs, locking in a set unit rate for the length of the contract to protect against sudden price rises. Businesses on rolling or deemed tariffs – typically the result of a lapsed contract or a house move without renegotiating – tend to pay noticeably more than those on an active, compared deal.
Fixed, variable, or rolling: which tariff is right for you?
- Fixed rate: Same unit cost for the whole contract term. Protects against market shocks, but you won’t benefit if prices fall.
- Variable: Unit cost moves with the wholesale market. Riskier, but can pay off if prices are falling.
- Rolling/deemed: What happens when a contract lapses and isn’t renegotiated. Almost always the most expensive option.
How to check you’re on the best deal
The quickest way to find out is a straightforward comparison. To get an accurate quote, have the following to hand:
- Business name and address
- Current supplier and contract end date
- Annual gas consumption (check a recent bill if you’re unsure)
How we can help
Langley Supply Group has partnered with Smarter Business, who compare business gas quotes from a trusted panel of UK energy suppliers and can manage your gas and electricity procurement together – giving you a full, one-place view of your costs and renewal dates. Comparing takes just a few minutes and can save your business up to 40% a year, with Smarter Business handling the entire switching process on your behalf.
As a Langley Supply Group member, you get preferential rates through us – so get your comparison started directly with our team.