What Is a Gas Supply Contract & Why Do I Need One?

Why do I need a Gas Supply Contract before I get a Gas Meter installed?

First question: Is this for domestic or commercial premises?

Domestic Consumers

In the case of domestic consumers with a live gas pipe connection it’s generally a simply a case of asking a domestic gas supplier (also known as a shipper) to quote their unit rate & standing/daily charges. Often, they will install a gas meter which may be free of charge.
Domestic supply contracts are usually flexible whereby you can leave for another supplier after submitting 30 days’ notice, subject to bills being paid and up to date. You could be better off with a fixed term deal where rates are agreed for a longer period, but you won’t be able to leave until the end of the contract.

Non-domestic or Commercial sites

Ofgem guidelines state that there must be responsibility taken by a customer to pay for gas used before access to gas is given. This means there needs to be a company to invoice for gas usage. This is to avoid the rare circumstances where sometimes meters have no related contract or supplier (known as a Shipperless supply). This results in consumers having free access to gas which can be deemed theft and result in pipe connections being cut off without warning, or even a criminal prosecution.

Following the correct procedure to enable a new gas supply connection/meter being fitted, a gas supply contract must be signed with a supplier. This is normally a fixed term agreement of 12, 24 or 36 months. Once a meter is fitted there is access to gas. For information and market leading tariffs call us now.

A gas supplier will be the company that sends you a monthly or quarterly bill for gas used. Some suppliers may say that they cannot provide a supply contract unless a meter already exists. This can appear like a ‘chicken and egg’ situation but we can easily resolve such problems.

Contracting gas supply where no meter currently exists may be complicated, but we can help make the process easier for you if you wish. Feel free to get in touch.

We will require the following information:

  • Contact name and telephone
  • Required contract start date
  • Contract term length: 1, 2 or 3 years
  • Company name and Company Registration Number (if applicable)
  • Registered Company Address
  • Meter Point Reference number (MPR or MPRN) if available

To make sure you get the right meter size you will need to know your Peak Demand, that is the maximum amount of gas in one hour to run the installed equipment and processes. This will dictate the meter size you require i.e.: U6, U16, U25, U40, U65, U100 (if known). If you don’t know, we can help you by calculating your requirements.

  • Your estimated annual consumption AQ (Annual Quantity) / also known as the estimated annual consumption of gas (kWh):

Gas prices are subject to a variety of factors and can be volatile. Prices that are offered are generally valid only for the day issued and can be withdrawn without notice in exceptional circumstances.

Bearing this in mind, if you are happy with the rates offered it is prudent to sign and accept the offer as soon as you receive prices.

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