Most business owners can tell you their electricity rate. Almost none can tell you their gas rate. That’s because gas bills are deliberately confusing — different units, different network, different contract shape, all wrapped in industry jargon nobody bothered to translate.
This guide is the plain-English version of how commercial gas pricing actually works in Queensland.
What you’ll get out of reading this:
- The units gas is measured and billed in (it’s not kWh)
- Every line on a commercial gas bill, decoded
- The four retailers actually worth quoting against
- What “capacity” charges are and why your kitchen has one
- How a gas tender differs from an electricity one
If you’d rather skip the reading: upload your last gas bill and we’ll mark it up free. We’ll tell you what you’re paying for, what’s negotiable, and what a sharper deal would look like.
The 30-second version
Commercial gas in Queensland is billed on three things:
- Volume — how much gas you used, in gigajoules (GJ). Not kWh. 1 GJ ≈ 278 kWh of heat energy.
- Capacity — what your peak demand looks like in MJ/hour. Like electricity demand, but for gas.
- Daily charges — fixed supply fee, regardless of usage.
A small cafe with a gas oven might use 20-40 GJ/year and pay $1,200-$2,500/year all-in. A pub kitchen might use 200-400 GJ/year and pay $14,000-$30,000. A bakery or commercial kitchen at scale: 500-1,500 GJ/year, $35,000-$100,000.
Different retailers price each component differently. The biggest negotiation opportunity is usually the wholesale rate per GJ (the volume charge) — that’s where 60-75% of the bill sits.
The four parts of a commercial gas bill
1. Identity — the MIRN
Like electricity has an NMI (National Metering Identifier), gas has a MIRN (Meter Installation Reference Number). It’s the unique ID for your gas connection on the network.
The MIRN is on the front page of every gas bill. It’s a longer string than the NMI (typically 10-12 digits with some letters). Every retailer that quotes you needs it.
2. Network operator
Queensland commercial gas is mostly distributed by AGN (Australian Gas Networks) in SEQ, and APA Group for some pipeline-fed sites in industrial areas. The network sets the network charges that the retailer then passes through.
3. Volume — the gigajoules
This is the biggest line on most commercial gas bills. Your meter reads volume in cubic metres (m³); your bill converts to gigajoules using a heating value factor (typically 38-42 MJ/m³, set by the network).
1 GJ = roughly the energy in 26 litres of natural gas at standard pressure. For perspective:
- A 4-burner gas hob running 4 hours/day for a month: ~3 GJ
- A small commercial gas oven running 8 hours/day for a month: ~15-25 GJ
- A pub kitchen with multiple gas appliances + commercial hot water: ~30-60 GJ/month
4. Charges — the breakdown
A commercial gas bill typically shows:
- Volume charge — $/GJ × GJ used. Set by retailer, negotiable. Typically $15-$25/GJ in Brisbane 2026.
- Network charge — $/GJ × GJ used. Set by network (AGN/APA), pass-through, non-negotiable. Typically $4-$8/GJ.
- Capacity charge — $/MJ/day for sites with demand above a threshold. Set by network, varies by tariff.
- Daily supply charge — fixed $/day. Network + retailer combined. Typically $1-$4/day for commercial sites.
- Environmental — GreenPower or carbon offset charges if you’ve opted in. Optional.
- GST — 10% on the lot.
Capacity charges — like demand, but for gas
If your gas site uses more than ~3 TJ/year (3,000 GJ — large kitchens, industrial bakeries, big hospitality groups), you’ll see a capacity charge on the bill.
It works like electricity demand: the network records your peak hourly consumption (in MJ/hour) and charges you for the wires + valves + storage it needed to provision for that peak.
Unlike electricity demand:
- Gas capacity readings are usually monthly, not based on a 30-min spike
- The charges are typically smaller as a % of bill than electricity demand
- Less negotiable on the network side, more on the retailer side
If you have a capacity line on your bill and you don’t understand it, ask your retailer. We’ve found discrepancies in capacity readings in roughly 1 in 30 commercial gas bills we’ve audited.
The four retailers worth tendering for SEQ commercial gas
Australia has fewer commercial gas retailers than electricity retailers. The four that consistently price sharp for SEQ commercial sites:
AGL Business Gas
- Sweet spot: small-to-medium commercial (50-500 GJ/year)
- Strengths: bundling with electricity, sharp volume rates for cafes/restaurants
- Weaknesses: less competitive on large sites
Origin Energy Business Gas
- Sweet spot: medium commercial (100-1,500 GJ/year)
- Strengths: middle-of-the-pack pricing, good account management for established customers
- Weaknesses: default renewal rates often above market
EnergyAustralia Business Gas
- Sweet spot: large hospitality (above 500 GJ/year)
- Strengths: aggressive on big hospitality kitchens, willing to bundle gas + electricity sharply
- Weaknesses: less consistent on small sites
Shell Energy Gas (commercial)
- Sweet spot: large industrial (above 5 TJ/year)
- Strengths: very sharp on industrial-scale volume, capable of structured gas tenders
- Weaknesses: minimum site sizes — they often won’t quote small commercial
For most Brisbane hospitality and small commercial: a quick panel of AGL + Origin + EnergyAustralia is usually enough. For larger sites or industrial: add Shell.
Bundled gas + electricity contracts
If your site uses both gas and electricity, bundling them with one retailer can save 3-8% on top of the individually-quoted savings.
Why retailers offer the discount:
- Single customer account = simpler back-office
- Higher annual revenue per customer = better retention metrics
- Bundle commission scales for the broker (so we’re aligned with you here)
Two cautions on bundling:
- The bundle discount is rarely as big as advertised. “Save 15% on your gas” often means “save 15% off the published gas rate” — which was 15% above market anyway. Always compare bundled price to standalone competitive prices.
- Bundle contracts can lock you in harder. If you switch gas mid-contract, you might lose the bundle discount on electricity. Read the exit clauses before signing.
We model both scenarios for clients: bundled and unbundled. Whichever wins on total annual cost is the answer.
How a gas tender differs from electricity
Three meaningful differences:
1. Smaller retailer pool
Four serious commercial gas retailers vs eight on the SME electricity panel. Less competition = less aggressive pricing movement. We typically see 4-10% negotiation room on gas vs 8-22% on electricity.
2. Slower turnaround
Gas retailers take 3-5 business days to come back with a quote, compared to 24-72 hours for electricity. The data they need to model (volume forecast, capacity profile) is harder to assemble.
3. Longer typical terms
Commercial gas contracts often run 36 months by default, where electricity is more commonly 12-24. Longer terms = more pricing risk if wholesale gas markets move. We typically recommend 24-month gas contracts when possible.
What you can do this month
If you’ve got a commercial gas connection:
- Find your last bill. Identify the MIRN, your annual GJ usage, and your contract end date.
- Check the volume rate ($/GJ). If it’s above ~$25/GJ for an SME or above ~$18/GJ for a larger commercial site in Brisbane, you’re probably above market.
- Check whether you’re on a bundled contract with electricity. If yes — what’s the unbundled-equivalent rate? Worth a comparison.
- Request a re-quote 90 days before your contract expires (same logic as electricity — see our renewal checklist guide).
Or upload your bill to us and we’ll do the math.
Multi-site gas portfolios
If you run multiple hospitality or commercial sites with gas (pub group, restaurant chain, multi-location bakery), the same C&I tender logic applies to gas as to electricity — see our multi-site guide.
Key differences for gas portfolios:
- The retailer pool is smaller, so the tender process is shorter (2-3 weeks vs 3-4 for electricity)
- Bundling gas + electricity across the portfolio is where the meaningful additional saving lives
- Capacity charges per site can vary wildly — model them site-by-site, not portfolio-aggregate
We’ve helped a 14-site pub group save $42,000/year on a bundled gas + electricity tender across their portfolio (previously on individual single-site contracts signed at different times).
Common questions
Why is my gas bill quoted in cents per MJ instead of dollars per GJ?
Some retailers display gas rates in cents/MJ (smaller number, looks cheaper) instead of $/GJ (industry standard). 1 GJ = 1,000 MJ, so divide cents/MJ by 100 to get $/GJ. A “1.8c/MJ” rate is $18/GJ.
What’s a “heating value adjustment”?
Natural gas energy content varies slightly by source. The network applies a heating value factor (typically 38-42 MJ/m³) to convert your meter’s volume reading to billable energy. The adjustment line balances any month-to-month variation. Usually a few dollars either way.
Can I have a meter installed at a new site?
Yes — AGN handles new commercial gas connections in SEQ. Lead time is typically 6-12 weeks. The retailer you sign with can usually project-manage the new connection on your behalf.
Is biomethane / green gas a real option?
Yes, for sites with sustainability commitments. AGL, Origin, and a few specialists offer green gas certificates that offset your natural gas usage. Cost is roughly $3-8/GJ premium over standard. Most SMEs don’t bother; some large hospitality groups with ESG commitments do.
Can I switch from natural gas to electric?
Yes, and many cafes and restaurants in Brisbane have done it. Induction cooktops + electric ovens + heat pump hot water can replace most commercial gas applications. The upfront capital cost is meaningful ($20-80k for a full kitchen retrofit) but the running cost is often lower and the demand profile is easier to manage. We don’t sell the appliances — but we can help model the energy contract implications of a switch.
One last thing
Commercial gas pricing has moved a lot in the last 3 years — both up and down depending on the LNG export cycle. Contracts signed in 2022-2023 are almost certainly above market for 2026 conditions. If your gas contract is from that window and hasn’t been reviewed, it’s the single best place in your business overhead to find savings right now.
If you’d like that audit: upload your last gas bill or send the MIRN + annual usage to hello@smartaswitch.com.au.
Joe Lawrence — Co-founder, Smarta Switch Australia
0435 642 592 · joseff@smartaswitch.com.au