When it comes to energy supply in the UK, not all tariffs are created equal. Whether you’re running a small café or managing multiple office locations, understanding the difference between domestic and commercial gas tariffs is crucial to making informed decisions for your business.
In this guide, Scalex Technology breaks down the key differences, benefits, and what you need to consider when choosing a commercial gas supplier.
🏡 Domestic vs 🏢 Commercial Gas Tariffs: The Basics
| Feature | Domestic Gas | Commercial Gas |
|---|---|---|
| User Type | Private households | Businesses and non-residential premises |
| Contract Type | Standard or fixed | Fixed, flexible, or bespoke |
| Billing | Monthly direct debit or quarterly | Monthly or customised billing |
| VAT | 5% (if under threshold) | 20% standard, with possible exemptions |
| Unit Rate Flexibility | Standard rates | Negotiable, based on consumption |
🔍 Why Can’t Businesses Use Domestic Tariffs?
While domestic gas tariffs are designed for low-consumption households, commercial premises typically use more gas and require tailored contracts. UK regulations also prevent suppliers from offering domestic tariffs to registered businesses, even if they operate from a home address.
💼 Key Features of Commercial Gas Tariffs
- Custom Pricing
- Rates are tailored based on usage, business size, location, and meter type.
- Contract Flexibility
- Choose from fixed or flexible tariffs, often over 1–5 year terms.
- Higher VAT
- Standard VAT is 20% (compared to 5% domestic), but exemptions apply for charities and low usage.
- Dedicated Support
- Many suppliers offer account managers and broker support.
✅ When Is a Business Eligible for a Commercial Tariff?
Your premises must be used mainly for business purposes—this includes:
- Offices
- Restaurants and cafés
- Retail shops
- Warehouses
- Schools and charities
Even businesses run from home may be eligible if over 50% of energy usage is for commercial activities.
🔄 Switching from Domestic to Commercial Gas
If you’re starting a new business or scaling up, you’ll need to switch to a commercial gas tariff. Here’s what to do:
- Get a recent meter reading
- Contact your supplier or broker
- Request a quote based on estimated consumption
- Sign a business contract (domestic contracts won’t apply)
Scalex Technology can help you make the switch seamlessly and secure the most competitive rates.
⚖️ Fixed vs Flexible Tariffs for Businesses
| Tariff Type | Benefits | Considerations |
|---|---|---|
| Fixed | Predictable bills, budget control | Less flexible |
| Flexible | Market-based savings | Risk of rising prices |
🔎 How Scalex Technology Helps
As a trusted UK business energy broker, we offer:
- Tailored quotes from leading gas suppliers
- Expert advice on contract types and terms
- Ongoing support for billing, renewals, and meter issues
- VAT reduction guidance for eligible businesses
📢 Final Thoughts
Understanding the difference between domestic and commercial gas tariffs helps you:
- Avoid costly billing errors
- Choose the right contract type
- Maximise savings through tailored deals
📞 Ready to Switch to a Better Business Gas Tariff?
Let Scalex Technology find the right commercial gas plan for your business. Speak to our expert brokers today for a free, no-obligation quote.
