30-Second Overview
Business gas tariffs are divided into four categories: Small Business User (SBU), Medium Business User (MBU), Fuel Variation Tariff (FVT) and Daily Metered (DM).
Your tariff category is determined by your Estimated Annual Consumption (EAC), Supply Point Capacity (SPC) and metering arrangements. These affect how your business is charged for gas, including unit rates, standing charges and capacity-related costs.
Understanding your tariff category can help you identify unnecessary charges and opportunities to reduce your gas bills.
⚡Are you on the right gas tariff? Upload a recent bill and our energy experts will check your tariff, review your charges and identify potential savings. Fast, free and simple. 👇
Business Gas Tariff Categories Explained
Commercial gas customers are classified into four main tariff categories based on annual gas consumption, Supply Point Capacity (SPC) and metering arrangements. Each category has a different charging structure, which affects the unit rates, standing charges and capacity-related costs businesses pay.
| Tariff | Annual Usage (kWh) | SPC Level | Typical Users |
|---|---|---|---|
| SBU (Small Business User) | Under 73,000 kWh | Any | Small shops, cafés, pubs and offices |
| MBU (Medium Business User) | 73,000 – 750,000 kWh | Under 3,750 kWh | Hotels, schools, restaurants and smaller factories |
| FVT (Fuel Variation Tariff) | 750,000 – 5,500,000 kWh | Over 3,750 kWh | Manufacturing sites and large commercial buildings |
| DM (Daily Metered) | Over 5,500,000 kWh | Over 3,750 kWh | Manufacturing sites, hospitals and large commercial buildings |
The tariff category determines how gas charges are structured. While smaller businesses generally have simpler tariffs with unit rates and standing charges, larger gas users have more complex pricing that includes capacity, transportation and other fixed charges.
Understanding which category your business falls into is the first step towards checking whether your gas costs are being calculated correctly.
Gas Tariff Breakdown – What Charges Are Included?
Small Business User (SBU) Tariff
An SBU tariff applies to businesses consuming less than 73,000 kWh of natural gas annually. It has a relatively simple charging structure, with no separate capacity charge. The charges included on bills are:
- Gas unit rate (per kWh)
- Daily standing charge
- Carbon tax
- VAT
Medium Business User (MBU) Tariff
An MBU tariff applies to businesses consuming between 73,000 kWh and 750,000 kWh of natural gas annually, with a Supply Point Capacity (SPC) below 3,750 kWh. The charges included on bills are:
- Gas unit rate (per kWh)
- Capacity charge (based on SPC)
- Daily standing charge
- Carbon tax
- VAT
💡 Important: MBU customers generally pay lower gas unit rates than SBU customers but also incur capacity-related charges. If your SPC is higher than your business requires, you could be paying more in capacity charges than necessary.
Fuel Variation Tariff (FVT)
An FVT tariff applies to larger businesses consuming between 750,000 kWh and 5,500,000 kWh of natural gas annually, with a Supply Point Capacity (SPC) above 3,750 kWh. FVT customers have a more complex charging structure than SBU and MBU customers, with additional fixed and capacity-related charges. The charges included on bills are:
- Gas unit rate (per kWh)
- Fixed charge (per kWh)
- Site charge (based on SPC)
- Shrinkage charge (covering gas losses within the network)
- Carbon tax
- VAT
Daily Metered (DM) Tariff
A DM tariff applies to large gas users consuming over 5,500,000 kWh of natural gas annually, with a Supply Point Capacity (SPC) above 3,750 kWh. Unlike smaller businesses, DM customers have their gas consumption recorded daily, allowing suppliers to calculate charges based on actual daily usage. These customers generally have more complex contracts with separate gas supply, transportation, currency and capacity-related charges. The charges included on bills are:
- Gas unit rate (per kWh)
- Transportation charges
- Capacity-related charges
- Fixed and site charges
- Currency adjustment (based on the EUR/GBP exchange rate)
- Carbon tax
- VAT
Why Your Business Gas Tariff Matters
Your gas tariff determines how your business is charged for natural gas. While smaller businesses pay relatively simple unit rates and standing charges, larger gas users face additional capacity, transportation and fixed charges. Your tariff category affects:
- Gas unit rates and pricing structures
- Standing, capacity and transportation charges
- Available contract options
- Overall annual gas costs
Gas Networks Ireland sets your Estimated Annual Consumption (EAC) and Supply Point Capacity (SPC). Gas suppliers use these figures to determine which tariff category and price plan apply to your business.
These figures are reviewed annually, with changes taking effect from 1 October. Your supplier will notify you of any changes. If you believe the revised consumption or capacity figures are incorrect, you can contact your supplier to request a review.
How to Get the Best Business Gas Prices
Understanding your gas tariff is important, but securing the best available gas rates is what makes the biggest difference to your energy costs.
Utilityfair is Ireland's largest and most reviewed business energy broker, trusted by over 20,000 business customers nationwide. We compare business gas prices across all suppliers to get you the best available rates. Our energy experts will review your current tariff, explain your contract options and provide a side-by-side price comparison, completely free.
Whether you're a small business on an SBU tariff or a large gas user on an FVT or Daily Metered contract, we can help you reduce your gas costs.
👉 Get Started Today!
Click the link below to fill out our enquiry form and upload a recent gas bill, or call 01 547 0999 to speak with a Utilityfair energy expert and start saving.
Frequently Asked Questions (FAQs)
The four main business gas tariff categories are Small Business User, Medium Business User, Fuel Variation Tariff and Daily Metered. Each category has different consumption thresholds and charging structures. Your gas supplier uses the Estimated Annual Consumption (EAC) and Supply Point Capacity (SPC) set by Gas Networks Ireland to determine the applicable tariff and price plan.
A Small Business User tariff applies to businesses consuming less than 73,000 kWh of gas annually. A Medium Business User tariff applies to businesses consuming 73,000 kWh to 750,000 kWh annually, with an SPC below 3,750 kWh. SBU customers pay a gas unit rate and daily standing charge, while MBU customers also pay capacity-related charges. MBU unit rates are generally lower than SBU rates.
A Fuel Variation Tariff (FVT) applies to larger businesses consuming between 750,000 kWh and 5,500,000 kWh of natural gas annually, with a Supply Point Capacity (SPC) above 3,750 kWh. FVT customers pay a gas unit rate, fixed charge, site charge based on SPC, shrinkage charge, carbon tax and VAT. These additional charges make it important to compare the total annual cost of gas contracts rather than just the unit rate.
A Daily Metered (DM) gas tariff applies to large businesses consuming over 5,500,000 kWh of natural gas annually, with a Supply Point Capacity (SPC) above 3,750 kWh. Gas consumption is recorded daily rather than relying on periodic meter readings. DM contracts have a more complex charging structure, including gas unit rates, transportation charges, capacity-related charges, fixed or site charges, currency adjustments, carbon tax and VAT.
Estimated Annual Consumption (EAC) is the amount of natural gas your business is expected to use over a 12-month period, measured in kilowatt-hours (kWh). Gas Networks Ireland calculates and reviews your EAC annually using historical consumption data. Your gas supplier uses this figure, together with your Supply Point Capacity (SPC), to determine your tariff category and applicable pricing structure.
Supply Point Capacity (SPC) is the maximum daily quantity of natural gas allocated to your business, measured in kilowatt-hours (kWh). Gas Networks Ireland sets and reviews your SPC annually. It is used alongside your Estimated Annual Consumption (EAC) to determine your gas tariff category and calculate capacity-related charges. A higher SPC can result in higher fixed costs, even if your actual gas consumption remains unchanged.
Gas Networks Ireland sets your Estimated Annual Consumption (EAC) and Supply Point Capacity (SPC). Your gas supplier uses these figures, together with your metering arrangements, to determine which business gas tariff category and price plan apply to your business. Gas Networks Ireland is responsible for the consumption and capacity figures, while your supplier determines the rates and charges under your gas contract.
Gas Networks Ireland reviews Estimated Annual Consumption (EAC) and Supply Point Capacity (SPC) annually, with revised figures taking effect from 1 October. Your gas supplier will notify you of any changes that affect your tariff classification. If you believe your revised consumption or capacity figures are incorrect, you can contact your supplier to request a review.
You cannot choose your business gas tariff category, as it is determined by your Estimated Annual Consumption (EAC) and Supply Point Capacity (SPC). Gas Networks Ireland reviews these figures annually, with changes taking effect from 1 October. If you believe your EAC or SPC is incorrect, you can contact your gas supplier to request a review. You can also compare suppliers and price plans within your existing tariff category to reduce your gas costs.
