According to the Competitions & Markets Authority’s (CMA) energy market investigation report, 45 per cent of electricity and 49 per cent of gas SME customers were on default (i.e. not negotiated) rates, including out of contract, deemed and auto-rollover rates.
These default rates are usually the most expensive deals offered by energy suppliers.
Essentially, what this means is that too many SMEs are paying too much for their gas and electricity. In an increasingly competitive energy market (there are over 60 energy suppliers in the UK alone), this need not be the case. As a result of Ofgem educating consumers about switching and saving, increased energy prices and other contributing factors, over 666 000 UK customers switched their supplier in February this year, an increase of 60% from February 2017.
What stops SMEs from switching and saving?
- The time and resources required to shop around and compare quotes.
- The complexity involved in comparing different energy unit prices and variable tariffs.
- Loyalty to an existing supplier.
- Lack of knowledge about how much the business stands to save by switching suppliers.
The simple way to switch
Time and resources are precious to SMEs. Whilst potential savings may sound attractive, the process of acquiring and comparing electricity quotes can be confusing and time-consuming.
Aside from cost-savings through switching suppliers, energy brokers can also provide full energy efficiency audits which identify areas of energy usage and reduction to drive down costs and reduce carbon emissions.
What you’ll need to start the process:
- A copy of your current energy bill
- Details about the type and size of your business size
- Your postcode
- Your gas and electricity supply numbers