Member Article

Small businesses are missing out on energy savings

With the big chill upon us, businesses in the UK are being urged to take full advantage of the savings they could make by switching their energy supplier.

Failure to switch to cheaper energy providers has cost the UK’s SMEs a staggering £2.4 billion over the past five years and 30 per cent of the nation’s 5.4 million small and medium-sized businesses have not switched electricity or gas supplier for half a decade.*

Steph Salusbury, Channel Manager for Insurance and Energy at Businesscomparison.com, comments:

“Switching has become increasingly popular among consumers in recent years, however many small businesses are missing out on savings on their energy due to their failure to shop around for the best deal. A recent YouGov study found that only one in ten SME business owners claimed to have decreased their energy usage over the past year. ** With higher energy consumption, particularly over the recent cold snap, it’s time for companies to review their tariffs and save money.

“Many business owners are still unaware of automatic contract renewal which involves them being rolled over and can result in firms being locked into a much higher rate for their business energy. Regulations are now in place to ensure suppliers must inform businesses of when their contract is to come to an end, however, a lack of awareness can still leave companies open to being rolled over. Knowing when the contract is up for renewal gives firms the opportunity to shop around for a new contact and better deal.”

Businesscomparison.com has published these four steps for businesses switching energy suppliers:

Step 1: Know when your existing contract is due to expire

Typically, your supplier will send you a renewal letter detailing the new prices they intend to charge for your energy use. Usually this is sent 60 days before the end of your current contract, however this can vary.

At this point you can either choose to renew your contract at the rate suggested or save money by switching to a different supplier with a new contract.

Step 2: Compare the best deals

Compare gas and electricity energy deals for your business using a comparison finder tool. Businesscomparison.com offer a free energy comparison service.

Upon comparing prices it’s useful to have a copy of a recent energy bill in front of you. On this document, you’ll also find important reference numbers that you will need to give to switch.

Step 3: Arrange the switch within 30 days of expiring

Ordinarily you have up to 30 days before your existing deal expires to switch to a new supplier.

This is referred to as Notice Period End Date and you must inform your supplier of your intention to switch before this date.

Step 4: Use a business energy broker

Use a business energy broker to process the switch and inform your existing supplier that you are taking your business elsewhere.

Businesscomparison.com offer a free energy comparison service.

See www.businesscomparison.com and follow @BizComparison

*Figures provided by Love Energy Savings.

**Research commissioned by Scottish Power. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 571 senior decision makers in SMEs. Fieldwork was undertaken between 15th - 22nd August 2016. The survey was carried out online. The figures have been weighted and are representative of British business size.

This was posted in Bdaily's Members' News section by Lucy Liddiard .