30-Second Overview
Business gas tariffs in Ireland are determined by two main factors: Supply Point Capacity (SPC) and Estimated Annual Consumption (EAC/AQ). Based on these values, businesses are assigned to tariff categories such as Small Business User (SBU), Medium Business User (MBU), or Fuel Variation Tariff (FVT).
These settings are reviewed by Gas Networks Ireland annually. They should be set correctly to avoid overpaying for natural gas.
In this article, we will cover:
- What natural gas price plans are available for businesses;
- The different gas meter categories, such as small business user, medium business user and fuel variation tariff;
- What does Supply Point Capacity and Annual Quantity or Estimated Annual Consumption mean.
⚡ If you are pressed for time and want quick answers, upload a recent gas bill using the link below, and our energy experts will analyse it for free. No obligation for you, just savings insights 👇
Business Gas Tariff Categories in Ireland
There are four tariffs categories that apply to gas meters:
- Small Business User (SBU)
- Medium Business User (MBU)
- Fuel Variation Tariff (FVT)
- Daily Metered (DM).
Business customers are automatically allocated to their appropriate tariff by natural gas suppliers, depending on the meter Supply Point Capacity (SPC) and Annual Quantity (AQ).
What is a Gas Small Business User (SBU) pricing structure?
Small Business User (SBU) gas customers have an Estimated Annual Consumption (EAC) or Annual Quantity (AQ) of less than 73,000 kWh.
Customer bills include:
- a commodity charge (cents per kWh);
- daily standing charge (cents per day);
- carbon tax (cents per kWh) ;
- VAT.
What is a Gas Medium Business User (MBU) pricing structure?
Medium Business User (MBU) gas customers have an Estimated Annual Consumption (EAC) or Annual Quantity (AQ) between 73,000 kWh and 750,000 kWh, and a Supply Point Capacity (SPC) of less than 3,750 kWh.
Customer bills include:
- a commodity charge (cents per kWh);
- capacity charge (cents per SPC per day);
- daily standing charge (cents per day);
- carbon tax (cents per kWh);
- VAT.
MBU customers pay a lower commodity charge than SBU customers, but this is offset by an additional capacity charge.
💡 Setting the SPC correctly is important to avoid overpaying on the capacity charge.
What is a Gas Fuel Variation Tariff (FVT) pricing structure?
Fuel Variation Tariff (FVT) customers generally have Estimated Annual Consumption (EAC) or Annual Quantity (AQ) greater than 750,000 kWh, with a Supply Point Capacity (SPC) above 3,750 kWh.
Customer bills include:
- a commodity charge (cents per kWh);
- fixed charge (cents per kWh);
- site charge (cents per SPC per day);
- shrinkage charge (cents per kWh);
- carbon tax (cents per kWh);
- VAT.
FVT customers pay a lower commodity charge than SBU and MBU customers, but this is partially offset by the fixed charge, site charge and shrinkage charge.
💡 Setting the SPC correctly is important to avoid overpaying for the site charge.
| 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 |
You can read more about the different gas tariffs in Ireland in our "Business Gas Tariffs in Ireland – SBU, MBU, and FVT Explained" article.
What Is Gas Supply Point Capacity (SPC)?
Gas Networks Ireland owns and operates the natural gas network in Ireland, transporting natural gas around the country on behalf of licensed natural gas suppliers. Natural gas suppliers are required to reserve "space" in the natural gas network to guarantee a secure supply to each of their customers. The amount of space reserved by gas suppliers for each customer is referred to as the Supply Point Capacity (SPC).
- Gas Networks Ireland charges all natural gas suppliers for reserving this capacity on the network and will guarantee gas supply to match the customers 'peak' demand level.
- The charge is agreed with the Commission for Regulation of Utilities (CRU) and is reviewed annually. It is important to provide a realistic Estimated Annual Quantity (EAQ) to ensure that an appropriate Supply Point Capacity is set for your business.
- This ultimately affects the initial costs payable by you to your chosen gas supplier in monthly standing charges.
- The SPC for each customer is reviewed and updated annually by Gas Networks Ireland based on actual usage in the past year. The revised SPC settings are applied on 1st October every year.
What is Estimated Annual Consumption (EAC) or Annual Quantity (AQ) for Gas Meters?
- The Estimated Annual Consumption (EAC) or Annual Quantity (AQ) is measured in kilowatt-hours (kWh) and is the best estimate of the amount of natural gas your business will consume in a year.
- This estimate is based on your previous year's usage. For new connections, the applicant estimates their requirement and a Registered Gas Installer provides the estimates to Gas Networks Ireland.
- This estimate of annual consumption is based on the types and numbers of appliances being used (e.g. boilers, cookers, fryers, tumble dryers, air conditioning etc), and on the number of hours and days per year that these appliances are operating.
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Frequently Asked Questions (FAQs)
SBU customers generally have an Estimated Annual Consumption (EAC) or Annual Quantity (AQ) of less than 73,000 kWh.
MBU customers generally have Estimated Annual Consumption (EAC) or Annual Quantity (AQ) between 73,000 kWh and 750,000 kWh and a Supply Point Capacity (SPC) of less than 3,750 kWh. Customer bills include:
FVT customers generally have Estimated Annual Consumption (EAC) or Annual Quantity (AQ) greater than 750,000 kWh and a Supply Point Capacity (SPC) greater than 3,750 kWh.
This is amount of space reserved by gas suppliers for each customer. Gas Networks Ireland charges all natural gas suppliers for reserving this capacity on the network and will guarantee gas supply to match the customers 'peak day' demand level.
The is the best estimate of the amount of natural gas your business will consume in any given year measured in Kilowatt Hours (kWh).
We are Ireland's largest commercial energy broker. We can show you the latest gas rates on offer across all suppliers in Ireland, help you pick the best plan for your business, arrange your new contract hassle-free, and we will monitor your new contract end date so that you are not automatically rolled onto expensive variable rates by suppliers.
