A business owner’s guide to British Gas Business

Energy is a major overhead for many companies, and British Gas Business is one of the most recognisable providers in the market. It is the commercial arm of Centrica and supplies gas and electricity to businesses across the UK. While the brand is familiar, business energy works very differently from domestic supply. There is no government price cap, contracts are fixed term, and your company’s credit profile can directly affect the terms you are offered. Understanding how British Gas Business structures its tariffs and risk checks can help you avoid higher rates and unexpected costs.

British Gas Business tariff options

Business energy prices are based on wholesale market rates at the time you agree to your contract, along with your usage profile and contract length. Most small businesses choose a fixed price contract. This allows you to lock in both your unit rate (price per kWh) and your daily standing charge for a set period, typically between one and five years. The key advantage is budget certainty. If market prices rise, your rates stay the same until the contract ends. The trade off is that if market prices fall, you remain on your agreed rates until renewal.

If your fixed contract ends and you do not agree to new terms or switch suppliers, you will usually move onto a variable rate. These are often referred to as out-of-contract or deemed rates. They are normally more expensive than fixed deals and can change with relatively short notice. Staying on these rates for long periods is rarely cost effective.

British Gas Business energy solutions by business size

Beyond tariff type, British Gas Business structures its services according to the size and complexity of your organisation:

British Gas Lite for small businesses

British Gas Lite is an online only product designed for smaller businesses with lower energy usage. It requires a compatible smart meter and is managed entirely through an online portal. Because it operates with lower servicing costs and limited phone support, it can sometimes offer competitive pricing compared to standard fully serviced contracts.

Small to medium sized businesses

For established SMEs with higher usage or more operational demands, British Gas Business offers fully serviced fixed term contracts. These typically include access to customer support teams and greater flexibility in contract structure. This model is often more suitable for growing companies, businesses with higher consumption, or those that prefer direct account support rather than a digital-only model.

Large organisations and multi-site businesses

For larger organisations, including those operating across multiple sites, British Gas Business can provide bespoke energy contracts built around the needs of the business. These agreements may involve tailored pricing structures, consolidated billing and dedicated account management. Businesses with complex or high-volume energy requirements often benefit from this customised approach rather than a standard small business contract.

Smart meters and why they matter

Smart meters are central to many British Gas Business tariffs, and some products require one as part of the agreement. A smart meter automatically sends readings to the supplier. This reduces reliance on estimated bills and lowers the risk of unexpected catch-up charges. For small businesses, this can make cash flow more predictable. Smart meter data can also help you identify patterns in energy usage. For example, you may spot machinery running outside trading hours or heating systems operating inefficiently. Over time, this insight can support cost reduction decisions. If your premises does not already have a suitable smart meter, British Gas Business may offer installation as part of a new contract, subject to eligibility and site suitability.

How British Gas Business assesses your application

When you request a quote or apply to switch, British Gas Business looks at more than just your expected energy usage. Because your business uses energy before paying for it, the supplier is effectively extending short term credit. Your company’s financial position therefore plays an important role in the assessment process and they will usually review your company’s credit profile. As part of this assessment, they will look at your payment history, any outstanding debts, previous defaults and how long your business has been trading. If your business has a strong credit score, you're more likely to be offered standard contract terms, including monthly direct debit, without the need for additional security. However, if your company is newly incorporated or has a weaker credit history, the supplier may adjust the terms to reduce their risk. This can include:

• Asking for a refundable security deposit

• Offering shorter contract terms

• Applying alternative or more restrictive payment arrangements

• In some cases, pricing that reflects a higher perceived risk

Prepayment meters are far less common in the mainstream small business market than in domestic supply. However, in higher risk situations, suppliers may consider pay-as-you-go style arrangements. Understanding your credit position before applying can help you anticipate these outcomes and reduce the likelihood of delays, deposits or unexpected costs.

Managing renewals and avoiding higher rates

British Gas Business and other energy suppliers will normally issue renewal terms several months before your contract ends. The renewal letter sets out your proposed new rates for the next term. You are not required to accept the first offer. The renewal window is an opportunity to compare prices across the wider market. However, business contracts usually include a defined notice period, often 30 days before the contract end date.

If you fail to give notice within the required timeframe, you may:

• Be rolled onto higher out-of-contract rates

• Be automatically renewed onto new fixed terms, depending on the agreement

Checking your contract end date early and diarising your notice window can prevent avoidable increases in your energy costs.

Strengthening your position as a customer

The terms you receive from suppliers like British Gas Business are influenced not only by market prices but also by how reliable your business appears financially. Maintaining a strong credit profile can:

• Improve access to competitive rates

• Reduce the likelihood of security deposits

• Increase flexibility in payment terms

At Capitalise, we help you understand what suppliers and lenders see when they review your business. You can monitor your company credit profile and identify areas that may affect your ability to secure favourable contracts. If rising energy bills are placing pressure on cash flow, funding can also support short term working capital needs or investment in more energy efficient equipment. We work with a panel of over 130 UK lenders, helping you compare options tailored to your needs.

By combining careful contract management with a strong financial profile, you can put your business in a better position when negotiating with British Gas Business or any other commercial energy supplier.