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How do energy companies calculate business gas usage?

By Sean Burke Subscribe to RSS | May 4th 2012 | Views:

Gas is one of the core utilities for business premises, whether you rely on it extensively or just for water heating. If you don't take adequate steps to compare gas rates and ensure you're getting the most for your money, your business could be paying more in overheads for its fuel supply.

Learning how gas prices are calculated, and how much gas your company is using, is important if you're hoping to reduce expenses, and will put you in a better position to negotiate with your provider for lower prices. If you find a better deal elsewhere, your gas provider may be able to offer you a lower cost deal, depending on your circumstances, with a tariff customised for your company's gas usage.

More homes and businesses consume gas each year, with the totals being recorded in terms of cubic feet of gas consumed. 100 cubic feet is equal to one therm, commonly abbreviated as CCF. Finding out how much your company is charged per cubic foot of gas consumed will allow you to easily work out the cost per CCF, when these details are included on your bill or read from your meter. For example, consumption of 250 CCFs equals a total of 25,000 cubic feet of natural gas consumed by your company, which should be multiplied by the cost per cubic foot.

The type of gas meter you have in your business premises can also offer you greater independence and control over the amount of gas you consume, with smart meters that can be read online being the most convenient option. Being able to regularly check your meter and receive timely information on your gas consumption will make it easier to react to changes in the markets or reduce your consumption if you feel your business is paying too much, rather than having to wait for the bill to arrive at the next scheduled interval.

Your gas tariff should also be reviewed each time your current contract is approaching renewal, as your provider may require a notice period if you're thinking of switching to a different company. Dedicated business gas tariffs are specially designed for the needs of businesses, and could save you significantly compared to the cost of domestic gas. If you receive your business gas and electricity from the same provider and they charge a single total for both, it may be necessary to convert your gas units from cubic feet or cubic metres into kWh.

Sean Burke - About Author:
Sean Burke writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

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