Member Article

Businesses in Leeds Urged To Switch To Kick-Start Energy Savings

The UK’s fastest growing independent energy provider, Utilita, is calling for greater transparency in energy packages available to micro-businesses after new research revealed more than three quarters (81 per cent) of businesses in Leeds struggle to shop around regularly for the best energy deal.

The findings come at a time when it has been reported that 80 per cent[1] of Britain’s small businesses are overpaying for their energy.

This is in stark contrast to the UK consumer market, with almost five million people switching their electricity provider in 2016 – up by a quarter (26 per cent) on 2015[2].

The findings, in an independent study commissioned by Utilita on the challenges facing UK high street, revealed fewer than half of micro-businesses in Leeds (46 per cent) believe they are getting a fair deal – and often face crippling upfront deposits, high tariff rates and prohibitive payment structures.

Less than one in five (18 per cent) local businesses in Leeds review their energy at least once a year and 23 per cent only review their deal every two to five years. In addition, one in ten (nine per cent) businesses in Leeds admitted they have NEVER shopped around for a better deal.

The Competition and Markets Authority has ordered energy firms to stop locking businesses into expensive, automatic rollover contracts - and make it easier for them to compare the cheapest energy prices. It is anticipated that these changes could help micro-businesses save up to £180 million a year[1]. As a result of the findings, Utilita has become the first provider to create a single tariff for micro-businesses, with flexible payment options and no upfront deposits.

Should customers face cash flow issues, Utilita will switch them onto a pay-as-you-go smart meter solution and roll up the current bill so that energy supply is maintained and the businesses can carry on trading – improving their credit rating at the same time. More information can be found by visiting https://utilita.co.uk/business.[3]

Shaun Underwood, Director of Utilita Business Energy, said: “We understand that many small businesses are time-poor and can find securing a fair energy deal challenging as they often face cash flow problems. More needs to be done by the UK energy sector to provide these businesses – the backbone of Britain’s economy – with a fairer and easier solution.

“Our commitment to these businesses, no matter what their situation, is a transparent pricing philosophy which ensures all our customers are treated fairly. No matter how they choose to pay, the price stays the same, with no crippling deposits.”

Utilita has 555,000 domestic customers and was the first independent supplier to challenge the Big 6 in the smart pay-as-you-go domestic market. It has been at the forefront of the UK’s smart meter rollout since it was founded in 2003. According to Utilita’s findings, micro-business owners work over 44 hours a week with almost a third working over 50 hours a week to secure the success of their business.

The full findings of the ‘Powering the UK High Street’ report can be downloaded by visiting https://utilita.co.uk/downloads/business/220UCE_Powering_The_Uk_High_Street_Book_SPREADS_09.pdf.

Sources [1] http://smallbusiness.co.uk/eight-every-ten-smes-overcharged-energy-2540214/

[2] http://www.energy-uk.org.uk/press-releases/370-2017/6000-2016-a-record-year-for-consumers-switching.html

[3] Terms and conditions may apply

This was posted in Bdaily's Members' News section by Utilita Business Energy .