Gas is essential to the daily running of any business. Therefore, no matter whether you are setting up a new firm, moving to new premises, or simply reviewing your expenditure, gas is something that needs serious consideration.

From fueling machinery and equipment to keeping your offices warm, you aren’t going to get much done without a good supply of gas. Luckily, there are experts like www.nboljor.se that you can consult with.

In this guide, we will reveal everything you need to know about business gas, the different tariffs that are available, so you can understand how your business gas prices are worked out, and much more.

Understanding the gas tariffs for businesses

For businesses, there are two types of tariffs available. These are as follows:

Fixed tariffs

A fixed tariff is one whereby you have guaranteed unit rates and standing charges. There is typically a defined end date, and you will often have to pay an exit fee if you decide to leave your contract early. However, if you switch supplier 42-49 days before your tariff ends, you cannot be charged an exit fee, as per new Ofgem rules.

One thing that is important to note, though, is that you only pay a fixed fee based on your gas usage. Price are fixed at different rates. Therefore, if you use more energy than what has been agreed upon, the figure you pay will increase. Fixed tariffs only promise the price of the pence for every kilowatt-hour expense of gas.

What are the benefits of choosing a fixed tariff?

- Cost-efficient – If you stick within the standard gas usage your fixed rates are based upon, then a fixed tariff will typically be the much cheaper option.

- Peace of mind – You’re not going to be impacted by any market volatility.

- Better cash flow management – This is especially beneficial for start-ups or businesses with restricted cash flow. As you will know exactly what your gas expenditure is going to be each month, it is a lot easier for you to manage your costs.

Variable tariffs

This is also known as a ‘standard’ tariff. This is the tariff that most businesses will automatically be on, as it tends to be a supplier’s default option. With this tariff, prices go can up and down based on the market. Also, your contract will not have a fixed end date, and there aren’t any fees if you decide to leave your contract.

What are the benefits of choosing a variable tariff?

- No hidden expenses – You won’t be stung with any exit fees if you do need to leave your contract early.

- Flexibility – The main benefit associated with a variable tariff is that it offers you flexibility. You won’t be tied into any contract.

There is no right or wrong answer when it comes to determining what tariff your business should go for. It is all about determining what is best for your needs. Here are some of the factors that you should consider to help you come to a decision:

- Renewable or green energy sources

- Combining your electricity and gas services

- How flexible you need your contract to be

- How much gas you are likely to use

- The price of energy