If your business uses more than 1 terajoule (TJ) of gas annually, there’s a strong chance you’re paying too much for your gas. Many high-usage sites are still billed under small business gas plans, which are designed for light commercial users. These plans often carry variable rates and bundled charges, making them cost-ineffective for larger businesses.
The good news is – even with a basic gas meter (one that requires manual readings), you may still qualify for a large market gas agreement — and the savings can be substantial.
The Problem with Small Business Gas Plans
For gas users consuming over 1TJ per annum, small business tariffs often create unnecessary cost pressures:
- Variable rates expose you to market movements, without offering protection or control.
- Bundled pricing hides the true costs of distribution and retail, reducing transparency.
- “One-size-fits-all” structure means you’re grouped with smaller users, even though your consumption profile is very different.
These plans may be convenient for low-usage businesses, but for larger gas users they are usually a cost trap.
The Opportunity: Large Business Gas Agreement
If your site uses more than 1TJ annually, you may be eligible to move onto a large market gas agreement. These contracts differ from small business plans in several important ways:
- Unbundled charges – Distribution, retail, and other components are separated, giving you visibility and potential levers for cost optimisation.
- Tailored pricing – Rates are structured to reflect your actual gas usage, not a generic small business profile.
- Improved alignment with consumption – Even without interval data, retailers can still recognise your higher volume and treat you as a large customer.
We have identified significant savings for clients who have made this move — in some cases, enough to materially improve their operating margins.
The Risks & Considerations
While large business agreements can unlock major benefits, they do come with added complexity:
- Tighter terms & conditions – Large market contracts often include stricter obligations, from take-or-pay provisions to termination penalties.
- Fewer retailer options – With a basic meter, you won’t have the same breadth of offers as customers on interval meters.
- Greater exposure to market dynamics – Without careful structuring, these agreements can increase risk instead of reducing it, and could become very costly.
This is why expert guidance is critical — to ensure that your business is positioned to capture the upside without being blindsided by hidden pitfalls.
Next Step: Evaluate Your Eligibility
If your business consumes more than 1TJ of gas per year, it may be time to review your current plan.
Contact us today for a complimentary evaluation of your gas contract options. Our specialists will:
- Analyse your current plan,
- Assess your eligibility for a large business gas agreement,
- Model potential savings, and
- Help you negotiate the best-fit contract with available retailers.
Don’t let your business be stuck on a small-user plan when your consumption clearly qualifies you for more. The right agreement could translate into meaningful annual savings and stronger cost control.
