30-Second Overview
Understanding your gas tariff structure is essential for keeping energy costs under control, and ensuring you’re not overpaying on unit prices or capacity charges.
Commercial gas tariff is determined by two key factors:
- The Estimated Annual Consumption (EAC): The EAC is set by Gas Networks Ireland based on the prior years usage.
- The Supply Point Capacity (SPC): The SPC is also set by Gas Networks Ireland and is a crude measure of the maximum amount of gas that will be used in a single day.
Based on the EAC and SPC, your meter will fall into one of three pricing categories:
- SBU (Small Business User): for low-volume users
- MBU (Medium Business User): for medium-sized energy consumers
- FVT (Fuel Variation Tariff): for high-usage and large-site businesses
⚡For quick answers, upload a recent business gas bill using the link below, and our energy experts will analyse it for free. No obligation for you, just savings insights 👇
What are the Categories of Business Gas Tariffs?
Ireland’s commercial gas market offers three primary pricing structures for businesses based on their SPC and annual usage:
| Tariff | Annual Usage (kWh) | SPC Level | Typical Users |
|---|---|---|---|
| SBU (Small Business User) | Under 73,000 kWh | Any | Small shops, cafés, pubs, local offices |
| MBU (Medium Business User) | 73,000 – 750,000 kWh | Under 3,750 kWh | Hotels, schools, restaurants, small factories |
| FVT (Fuel Variation Tariff) | Over 750,000 kWh | Over 3,750 kWh | Manufacturing sites, large buildings |
Gas Tariff Breakdown – What Charges are Included?
Small Business User (SBU) Tariff
This is the default tariff for small businesses with lower usage and simple billing. The annual usage must be under 73,000 kWh.
The charges included on bills include:
- Commodity charge (per kWh);
- Daily standing charge;
- Carbon tax;
- VAT.
Medium Business User (MBU) Tariff
The annual usage must be between 73,000 kWh and 750,000 kWh. In addition, the SPC must be under 3,750 kWh.
The charges included on bills include:
- Commodity charge (lower than SBU);
- Capacity charge (per SPC per day);
- Daily standing charge;
- Carbon tax;
- VAT.
💡 Note: While MBU customers benefit from a lower unit price per kWh, there is an additional capacity charge based on the meter's SPC. This means that setting the SPC correctly is critical to avoid unnecessary costs.
Fuel Variation Tariff (FVT)
This tariff is for high-demand gas users with more complex billing. While unit cost per kWh is lower, fixed charges and capacity-related charges are substantial. The annual usage must be greater than 750,000 kWh. In addition the SPC must be over 3,750 kWh.
The charges included on bills include:
- Commodity charge (lowest per kWh);
- Fixed charge (per kWh);
- Site charge (per SPC per day);
- Shrinkage charge (covers network gas loss);
- Carbon tax;
- VAT.
Why Your Business Gas Tariff Matters
Your business gas tariff affects far more than just the unit rate you pay for gas. It also influences overall commercial energy costs, contract options and billing structures.
A business gas tariff can impact:
- Commercial gas rates per kWh;
- Standing and capacity-related charges;
- Eligibility for fixed or flexible gas contracts;
- And access to supplier discounts.
Your gas supplier automatically assigns you to the correct tariff based on your Supply Point Capacity (SPC), and Estimated Annual Consumption (EAC).
These are updated annually by Gas Networks Ireland using data from the prior year's usage. However, if your business has changed operations, or your SPC is set too high, it’s worth contacting your gas supplier and requesting that it be reviewed.
💡 Businesses on the wrong tariff structure, or with incorrectly assigned capacity levels, may pay significantly more than necessary for commercial gas.
How to Get the Best Gas Prices
The quickest and easiest way to lower your gas bill is to ensure that you are on the lowest gas rate available. Many businesses overpay simply because they have not had a chance to review their contract.
Utilityfair is Ireland’s leading commercial energy broker, with over 20 years of experience helping 20,000+ businesses nationwide. With an impressive track record of 1,600+ 5-Star reviews on Trustpilot, we can help lower your commercial gas bills by putting you on the best gas rate on the market. We will send you a full price comparison across all suppliers, completely free.
We take the hassle out of energy contract management, giving you more time to focus on keeping your business successful.
👉 Get Started Today!
Fill out our enquiry form, click the link below or call 01 547 0999 to speak with a Utilityfair energy expert and start saving.
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Frequently Asked Questions (FAQs)
The three main business gas tariffs in Ireland are SBU (Small Business User), MBU (Medium Business User), and FVT (Fuel Variation Tariff). Each is assigned based on your annual gas usage and Supply Point Capacity (SPC).
Your business is automatically assigned a gas tariff by your supplier based on your Estimated Annual Consumption (EAC) and Supply Point Capacity (SPC), both of which are reviewed annually.
The SBU (Small Business User) tariff is for businesses using less than 73,000 kWh of gas per year. Charges include a commodity rate, daily standing charge, carbon tax, and VAT.
The MBU (Medium Business User) tariff applies to businesses with an annual gas usage between 73,000 and 750,000 kWh and an SPC below 3,750 kWh. It includes a capacity charge in addition to standard charges.
The FVT tariff is for high-usage gas customers consuming over 750,000 kWh annually and with SPCs above 3,750 kWh. It includes additional charges like fixed, site, and shrinkage fees.
Your gas tariff affects your unit price, standing charges, and capacity-related costs. Being on the wrong tariff can result in overpaying, especially if your SPC is set too high.
You can’t manually select your tariff, but reviewing your usage and SPC with an energy expert can trigger a reclassification if your consumption has changed.
MBU customers usually benefit from lower per-kWh rates than SBU customers, but the savings may be offset by additional capacity charges.
FVT gas bills include a commodity charge, fixed charge, site charge (based on SPC), shrinkage charge, carbon tax, and VAT.
Speak to an energy broker like Utilityfair to review your consumption and SPC. We can ensure your business is assigned the most cost-effective tariff and supplier plan.
