How much is your renewal?

Customers need to be wary of not ignoring their renewal letter when it arrives from their current business electricity supplier.

A number of suppliers in the UK will tend to offer a renewal rate that is 30-40% in excess of the current retail price with the primary objective that the customer will not act on the letter so that the contract can be rolled over onto more expensive renewal rates.

The suppliers renewal letter is very misleading... 

A supplier's renewal letter can be very misleading in the way that it presents the price to the customer by using terminology such as "Don't worry, we are protecting your business prices for a further 12 months". If this terminology is used in the subject header of the letter many customers will trust their supplier and assume that the electricity rates detailed within the letter are competitive and the supplier is offering their best price first time.

A supplier intends to place you on an expensive renewal rate... 

This is unfortunately the case as most suppliers will always try and put business energy customers on a expensive renewal rate hoping that the letter is filed away and it is only when the customer gets their first bill after the roll over that they realise how much their energy spend has gone up. Unfortunately in many cases it is then too late to act and the renewal has been assumed.

Read more about 'Avoid Expensive Business Electricity Renewal Prices' here

Only 1/5 business 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

Government ensure failing SMEs are protected

The Energy Advice Line has welcomed a government initiative to protect failing but viable small and medium-sized firms from having their energy supplies disconnected.

Under the plans, struggling SMEs will have their gas, electricity, water and essential IT services safeguarded while administrators put together a financial rescue package.

Suppliers will have their payments guaranteed before other creditors so that they can be certain their bills will be prioritized. Only if bills remain unpaid 28 days after the rescue package has been implemented will they be allowed to disconnect services.

Are business energy bills a worry?

More small and medium-sized firms should seek help with reducing their energy bills says The Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said a new survey by Vickers Energy Group suggested firms were not taking control of their gas and electricity supplies.

"It's crucial for SMEs not to put their energy supplies in the too hard basket and just coast along hoping for the best," Mr Morgan said.

Be aware of hidden charges

Consumers shopping for cheaper business electricity rates should ensure that they compare like-for-like tariffs following changes in the way some suppliers itemise their bills, according to the Energy Advice Line.

Some customers could be signing up to deals unaware that a Feed-in Tariff (FiT) charge was payable on top.

The FiT scheme was designed to encourage homeowners and businesses to invest in green technology such as solar panels and wind turbines. People who install the technology receive a subsidy and a guarantee that any surplus electricity will be bought back by the national grid.

Suppliers can not longer absorb the costs... 

The subsidy is paid for by adding an extra charge onto the bills of those who don't install the technology. Up until recently, most suppliers just incorporated this into their unit rate so it was invisible. However, this is changing. The number of people taking advantage of the FiT scheme grew tenfold in 2012 and, combined with the fact that the subsidy is set high to encourage people to join up, there's heavy financial pressure on the system.

It was only a matter of time before business electricity suppliers started itemising this as an extra charge, and some have started to do this. The crucial thing for consumers is to make sure that the price they are quoted for their electricity does in fact include this FiT charge, as we estimate that it adds a not-insignificant 2 - 3% onto a bill.
When comparing prices ask about the FiT Charge... 

When comparing energy prices, consumers need to be very careful that they are comparing like-for-like and ask suppliers whether the price they are quoting includes the FiT charge, or if it will be added on top.


Read more about 'Beware of Hidden Charges Before Switching Suppliers' here

Businesses lose millions by failing to be energy active

Small and medium-sized firms are losing out on millions of pounds in potential savings by failing to engage with the energy market, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said a new YouGov survey showed that SMEs who did not negotiate with suppliers were paying a high financial cost.

The survey, commission by npower Business, found that 70% of SMEs surveyed don't bother to ask suppliers for discounts and price savings. Those SMEs who did ask saved a total of £511 million on their energy bills - an average £2,800 per business.

"So many businesses assume there is nothing they can do about the size of their energy bills because prices are beyond their control. It simply isn't true," Mr Morgan said.

"Just as shopping around for the cheapest deals can achieve substantial savings, so can negotiating to secure the very best deals.

"The sruvey proves that the size of the potential savings is staggering - up to £10,000 for some businesses.

"The lesson is that businesses have to take charge of their energy supplies by shopping around and trying to drive a hard bargain. Energy is exactly the same as any other good or service - you don't settle for any old deal."

To encourage more businesses to negotiate with their suppliers, the Big Six has launched a campaign that offers tips on how to get the most out of their negotiations, including the importance of research and planning ahead.

But Mr Morgan said that using an independent and respected service like the Energy Advice Line was another option for business leaders and decision makers who wanted to save time and legwork.

"Businesses can really improve their bottom line by taking a good hard look at their energy costs and suppliers - and we can help with that," Mr Morgan said.

"We have expert business energy advisers who know all the traps, tricks and pitfalls involved in analyzing the market and choosing the best deal.

"The service is completely free and involves no pressure or cold calling. It just makes financial sense."

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic 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 line for business energy customers.

For further information visit energyadviceline.org.uk

Consumers tricked by cold callers

An unsolicited cold caller has deliberately tricked a Business Electricity customer into a contract by claiming that they were calling from their current supplier, according to Energy Advice Line.

The customer was literally bombarded by calls from this cold caller and quoted to Energy Advice Line that she "could not get anything done in between calls" as the frequency was so high. The customer admitted that she was "badgered into submission" and eventually agreed to sign up.

Unfortunately, this is where the real issues started for this particular customer as when she contacted the supplier in response to a significant increase on her businesses bills she was told that she had been miss-sold the contract by the agency and the liability did not rest with them as the supplier.

 The customer was tricked... 

The customer was not just tricked into the contract but then found out that the bills had increased as a result. This is unfortunately the big problem with unsolicited cold calling as the customer is literally forced into contracts with high pressure sales techniques with no proof that the caller has checked the market to offer the best price possible. The sheer number of calls that the cold callers make is staggering but is purely designed to wear down the unsuspecting customer into agreeing a contract that is usually very heavily commission weighted.

Read more about 'Be Wary of Business Electricity Cold Callers' here

Suppliers must support collective switching

The Energy Advice Line has welcomed an Ofgem ruling that requires energy suppliers to publicise "collective switch" tariffs on their Cheapest Tariff Message (CTM).

Suppliers are already obliged to include information on bills about the cheapest tariffs available and how much a customer might save by switching to the deal.

But under a new ruling, suppliers must also include details of the tariffs available through collective switches - those organised by a group of people who use their buying power to get a better deal.

Normally a customer would have to register with the collective before switching, but under the new ruling they will be able to switch after the collective rate has already been fixed.

"When carried out in a responsible and trustworthy manner, we value collective switches as an innovative way of engaging consumers and facilitating the switching process," Ofgem says. "Collective switches provide consumers, including the vulnerable, with another means of accessing better energy deals, which in turn enables them to save money."

But Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said it was important for consumers to examine collective switch tariffs very carefully as often they were not as cheap as they appeared at first glance.

"There's no reason why more customers should not benefit from collective switch tariffs, an innovative way of securing good deals and encouraging consumers to switch," said Julian Morgan, managing director of the Energy Advice Line, the UK's leading price comparison, switching and advice service.

"But it's important to look at the details of the tariffs and ascertain wehther it is genuinely cheaper than other deals available elsewhere. The collective may not have had access to the best deals, for whatever reason, so consumers need to be careful."

Mr Morgan said there was no better way to find the best deal than shopping around and checking the market.

"You should do this yourself or use the services of a reliable and reputable service like ours. Our quotes are quick, simple and you can compare this with what you are already paying, or the collective switch tariff publicised on the CTM.

"The important thing is to stay in control of your energy supplies, switch regularly and make informed decisions. That's the best recipe for saving money on your energy bills."

The Energy Advice Line is a concumer champaign and an indepdendent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.

For further information, visit energyadviceline.org.uk

One Million Consumers Ditch Big Six

New figures that show more than one million consumers ditched the Big Six suppliers in favour of smaller companies over the past year were no surprise, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said there had been a noticeable drift away from the major suppliers in the past year.

"Years of bad service and high prices have taken their toll on the Big Six and these figure confirm that," Mr Morgan said.

Survey reveals 50% of SMEs can't pay their energy bills

More small and medium-sized firms should seek help with reducing their energy bills says The Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said a new survey by Vickers Energy Group suggested firms were not taking control of their gas and electricity supplies.

"It's crucial for SMEs not to put their energy supplies in the too hard basket and just coast along hoping for the best," Mr Morgan said.

Failing to Shop Around Results in a Loss of Savings

 Most small and medium-sized firms were missing out on savings by failing to shop around for their energy supplies, according to the Energy Advice Line following the release of a new report.

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.

Go Independent for Better Service

 SMEs right to consider independent energy suppliers, says Energy Advice Line

The Energy Advice Line has urged SMEs to consider switching to independent energy suppliers following a report showing they enjoy higher customer satisfaction ratings than the Big Six.

Julian Morgan, managing director of the price comparison, switching and advice service, said Datamonitor’s B2B Energy Buyer Customer Satisfaction survey showed small firms continued to be unhappy with the major suppliers.

#SmallBizSat is Here Again - We're Here For You

Calling all small businesses! We're here to help you this winter, in fact we're here to help you all year round. The festive season is upon us once more and the purse strings are tighter than ever - every little helps when it comes to saving at the festive season. The easiest way to save on energy bills? Switching.

Switching is easily overlooked as so many perceive it to be too much hassle, but in reality it's easier than ever. The gurus at Energy Advice Line are here for you. We'll find you the cheapest quote available on the market right now based on your own consumption rates, and where you are in the country. Not only that but once we have all the details your personal advisor will complete the process for you.

Be Wary of Your Renewal Rates

Customers need to be wary of not ignoring their renewal letter when it arrives from their current business electricity supplier.

A number of suppliers in the UK will tend to offer a renewal rate that is 30-40% in excess of the current retail price with the primary objective that the customer will not act on the letter so that the contract can be rolled over onto more expensive renewal rates.

Energy Insider Calls For Fairer Customer Service

The Energy Advice Line has welcomed calls by an industry insider for the Big Six suppliers to introduce simple changes that would see customers paying less for their energy, and being treated more fairly.

Julian Morgan, managing directer of the price comparison, switching, and advice service for energy users, said regulators should heed the comments by First Utility, a leading independent supplier, and enforce the changes.

"First Utility has echoed what we have been saying for some time - that energy companies need to make simple changes, like actually talking to their customers, in order to restore trust and deliver them a better deal," Mr Morgan said.

Is Your Business Ready for Winter?

Energy Saving Tips for the Business from Energy Advice Line

Energy Companies Letting Down SMEs

The Energy Advice Line has welcomed calls by business leaders for small firms to be offered more help by energy companies to keep their gas and electricity prices down.

Julian Morgan, managing director of the price comparison, switching and advice service, agreed with the Federation of Small Businesses (FSB) that energy companies could reap rewards by offering more tailored support to SMEs.

“Energy costs now represent a significant proportion of a small firm’s overheads but many owners are so busy with the day-to-day running of their organisation they don’t get around to developing an energy strategy,” Mr Morgan said.

Falling Bills Doesn't Mean It's Time To Be Complacent

The Energy Advice Line has urged caution following the release of new consumer data showing falling energy bills have caused consumers to feel “their richest in four years”.

Julian Morgan, managing director of the price comparison, switching and advice service, said bills were down but many fixed-term contracts were about to expire and consumers could be flipped to more expensive standard tariffs.

Business Electricity Price Review - Quarter Two 2015

Business energy users are opting for more short term contracts in response to the current price drops, and hoping that the trends will be similar when their contracts are up for renewal in the same quarter of 2016. However, Energy Advice Line recommends that you take these cheaper prices and lock them in to a fixed term contract of a longer length and avoid the risk of prices going up next year.

According to Julian Morgan, managing director of the price comparison, switching and advice service for energy consumers, longer-term contracts continue to be a more viable option than ever for firms as protection against price fluctuation in a volatile market.

Seek Help When Relocating Your Business

The Energy Advice Line has urged small businesses that need to move premises to get in touch after a survey showed 20% of firms put off relocating because they cannot face changing service providers.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users said it was unfortunate that so many business owners were staying in potentially inappropriate premises because dealing with suppliers was so hard.

“Small business owners should get in touch with us because we can sort out their business energy needs, leaving them free to get on with moving and ensuring their firms make a smooth transition to new premises,” Mr Morgan said.