Thursday, 24 August 2017

Only 1/5 business shop around for energy

81% of SMEs don't shop around for energy

Most small and medium-sized firms were missing out on savings by failing to shop around for their energy supplies.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said he was shocked by the findings of the survey by independent supplier Opus Energy.

The survey found that 81% of small businesses failed to shop around for their energy supplies, while almost one-quarter were paying out-of-contract rates for their gas and electricity.

Significantly, 12% of businesses had never switched suppliers, opting to stay loyal to their existing energy company.

“It’s very clear, and actually quite shocking, to see that so many time-pressed small business owners and decision makers are simply not prioritizing their energy supplies,” Mr Morgan said.

“There’s no doubt that most of these firms are paying more than they need to by not switching – and depending on the size of the company and the sector they are in – this could amount to hundreds of pounds in lost savings each year.

“Those companies that have never switched suppliers have lost out the most, probably by a significant amount.”

Mr Morgan said many SME owners wrongly believed it was not worth their while to switch suppliers, and that it would be a long and complicated process to shop around.

“Nothing could be further from the truth, “ Mr Morgan said. “Using a reliable and reputable switching service like the Energy Advice line means business owners save themselves all the legwork. 
“And once we find them a cheaper deal, we handle the switching and provide a free contract management service as well. There’s no obligation and the service is free.”
Mr Morgan particularly appealed to small firms that had never switched suppliers, and those who were on expensive out-of-contract rates to shop around for good fixed-rate deals.
In other areas, the Opus Business Boost Report showed that the majority of UK SMEs were trying to manage their energy better and had adopted a positive attitude towards renewable supplies. 
Of the 500 SMEs surveyed, 78% said they were keen to be supplied with renewable energy and of these, 40% wanted it because of its smaller environmental impact and 38% to advance their green credentials. 
More than half (51%) of businesses already have smart meters to help them keep track of their energy use, although a fifth didn’t know how to use their meter.
The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.
The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice service for business energy customers throughout the to of their energy contracts.
For further information visit www.energyadviceline.org.uk