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.
Get advice from our Energy Management Consultants
Philip Glasscock
Energy Management Consultant
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