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Business energy costs on the rise

Mar 22, 2016

On Monday 10th March, The Competition and Markets Authority (CMA) published findings that small and medium sized businesses paid £280 million more per year for their energy during the period of 2007-2014, a shocking figure. Last year there was a big investigation into domestic energy prices with suppliers charging more than they should and now the spotlight has been turned onto business spend.

Our customers are all small and medium sized businesses so this report is particularly important to us as it highlights the reasons why business owners should look at switching their energy contracts regularly, a message we often try to shout about in the media.  There are lots of comparison sites out there all offering cheap energy deals but here are some important points that make us slightly different.

Don’t waste time waiting
We always recommend customers to look into new contracts as early as possible – sometimes we place new contracts with suppliers up to 6 months in advance of the existing contract expiring.  Suppliers are offering rates earlier to be competitive and our relationship with them means we get better rates than our customers could find themselves searching online.

Open, honest and clear communications
Complete honesty and price transparency is key. This is why we provide our customers with a list of the best price deals from all the suppliers on our books – each offer will have different contract terms and durations – you can get 1 year, 2 year or even up to 5 year contracts now.  We send all the options to our customers so that they are fully aware of all the tariffs available and can then choose a contract to go with – we also share our own recommendations, however customers are never placed under any pressure to go with these.

Beware of Out of Contract rates
Out of Contract (OCC) rates can mean that your current contract has ended but a new one is yet to be agreed so you will be put on default prices. These will remain until a new pricing arrangement is agreed. We agree suppliers should publicise their Out of Contract (OCC) rates online to avoid any nasty surprises for customers – some OCC rates can be up to 23.46p per KWh and if customers are unaware of these it can create a huge dent in business profits.  We often find new customers turn to us for help because they have found themselves on OCC rates which are more than double the typical market rate. We do all we can to secure them a new deal as quickly as possible.

Don’t accept renewal offers before talking to us
We encourage customers to look around for a better deal and not to just accept their renewal offer because and we often find that we can beat renewal offers from incumbent suppliers, on average saving companies 23% ( we saved one customer  56%!) so before you go ahead and sign up for another year, talk to us as we could get you some savings.  If however we find you are on the best deal for your business, we will be honest with you and will tell you to stay with your existing provider.

And finally…

We do the remembering
We send customers regular renewal reminder emails to make sure they know well in advance when their contract is due for renewal. Even if you are not a customer of ours you can always call us and leave your details with one of our Energy Advisors and they’ll make sure you’re sent a renewal reminder when the time is right.

So it really is time to start looking at your own business energy costs because you could be making significant savings. The recent CMA study only supports the fact that businesses can often forget what impact energy bills have on a business’s bottom line and how much they are spending versus saving. 

Make a call to us today and make a difference to your business spend.

To read the full CMA report click this link