What Laundrettes Need to Know About Commercial Gas Prices

24 November 2017

What Laundrettes Need to Know About Commercial Gas Prices

If you need gas for heat and hot water in your laundrette, it’s important you know how commercial gas prices work. After all, you could be paying as much as 80 percent more than you need to for gas. You know how much your gas bills cost, but you may be paying too much.

Not everyone, of course, will be able to save as much as 80 percent, but even a small saving can be significant.

How Commercial Gas Prices Work

The price your laundrette pays for gas depends on the rate of your current contract. Usually, it will be one of the following options:

  • Fixed term gas rates - this is a contract for a fixed length of time that usually also includes a fixed rate for the gas you use. This is the most secure type of gas rate as you’re not affected by fluctuations in the market. You are, however, locked in for the duration of the term. This could be anything from one to three years, although you can sometimes get deals for up to five years.
  • Out of contract business rates - when the contract with your existing supplier gets close to the expiry date, that supplier will write to you offering the option of a new contract. This will usually have a new rate to reflect the current conditions in the energy market. If you don't do anything (i.e. you don't agree to the contract and you don't cancel your service so you can switch), the supplier will often move your laundrette onto its out of contract rates. In most circumstances, these rates are more expensive than the fixed term rates that are available.
  • Rollover rates - some gas suppliers use rollover contracts for all or some of their tariffs. This differs from other types of contract in regard to what happens when the contract expires. On a rollover contract, the energy supplier will write to you to let you know what is going to happen at the expiry date, i.e. they will give you details of the new deal. If you do nothing, your acceptance is assumed and you’ll be locked into a new deal for a fixed period of time. In most situations, this does not represent good value for money as you can usually find better deals if you switch suppliers.
  • Deemed rates - this is a variation of out of contract rates and it only applies if you have just moved into a new property. The gas supplier who previously supplied energy to the property will supply gas for you at its deemed rates, i.e. you’re are deemed to have agreed to the rates.

Of the four types of rates above, fixed term is usually the best option for most laundrettes, although you should look at the deals that are currently available. You should also look at the needs of your business and how the available deals fit in.
Doing nothing, however, is rarely a good idea. By taking a proactive interest in gas prices in general as well as the prices you pay, you’ll be more successful at saving money.

Get in contact

If you’d like to talk to us about minimising the gas and electricity prices for your laundrette, then please don’t hesitate to get in contact. With excellent rates, an emphasis on transparency and flexibility, and a high level of service, saving money for your dry cleaners is made simple and easy with UGP. 

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