Gas for domestic or business use is bought wholesale by the array of suppliers operating within the UK market and then distributed to households or commercial premises via these suppliers. Gas bills are calculated on the basis of how many units of energy are consumed, usually alongside a standing charge. Gas meters measure the volume of gas used in cubic feet or cubic metres and the gas companies convert this into kilowatt hours.
Among the wide range of energy suppliers there is an equally wide range of gas prices, which are organised through an array of pricing plans. These plans provide a different set of benefits to different consumers, depending on the energy needs of the business or household.
Most suppliers offer standard or default plans but there are a range of specialist structures with their own system for determining gas prices, such as green plans, which are designed to mitigate climate change; fixed plans, which freeze the price of a unit of energy for a certain period; capped plans, where gas prices won’t rise for a set period but can be reduced if prices fall; online plans, which allow households to sign up via the internet and manage their accounts online; business energy plans tailor-made for commercial gas and electricity consumption; and social plans, which are equal to an energy provider’s cheapest deal and which they are obliged to provide to help the poorest households pay their bills.
Since 1999 all UK consumers of gas and electricity consumers have the right to switch their supply to any of the regulated gas providers in the market, allowing households to move on if their gas supply becomes unacceptably expensive or service standards fall below an acceptable level. Many customers have saved up to £425 a year by simply switching supplier.
The process of switching supplier is less complicated than people think and is completely free when using some price comparison websites. All gas suppliers use the same supply lines, wires and meters and when a customer informs them that they wish to switch to them, they are obliged to contact the old supplier themselves and arrange the transfer. If the switch goes according to plan, then the only difference that the customer will notice should be a new supplier’s name and logo on the bill – and cheaper gas.
