If you run a business and you’ve never switched to a new energy contract, you could be paying as much as 40% more than you need to for gas and electricity.
A recent study carried out by the Competition and Markets Authority (CMA) found that a staggering £7 billion is being wasted by small and medium-sized businesses overpaying on their gas and electricity bills.
The study also found that half of the business customers who are supplied by the Big Six energy firms are less likely to switch and have stuck with their supplier for five or more years. This means they’ll be on their provider’s standard variable rate tariff which can be an eye-watering 116% more expensive than the cheapest out there.
Why Aren’t More Businesses Switching Energy?
There seem to be a number of barriers to switching business energy, ranging from the whole process being too time-consuming to some business owners not actually being aware they can switch supplier.
Some business owners aren’t aware of the potential savings on offer, while others simply don’t have the time or inclination to compare business energy quotes.
That’s where our Energy Partner, Make It Cheaper can help. They will do all the legwork for you, searching the market and cutting your energy bills.
Energy Switching Myths – Busted
Many business owners don’t get the best deal on business energy because of some of the myths surrounding switching, so it’s time to bust some of the biggest energy switching myths;
Energy bills are too confusing
Figures from the Flogas Business Energy Report 2016 found that 90% of SME owners think their energy bills are not clear enough, while 10% claim they can’t understand their bills at all.
Although there is a lot of information held on your business energy bill, the energy experts at Make It Cheaper can talk you through your bill and pick out the key information you need to help us switch you on to a better deal for gas and electricity.
My supplier won’t let me switch
There are some instances when you can’t switch supplier, usually because your contract hasn’t entered its switching window or you owe money to your current supplier. But as soon as you contract enters its switching window, which is usually between one and six months before its end date, you’re free to compare deals and set up a new contract.
Switching with Make It Cheaper means they can do all the leg work for you and deal with your supplier directly or provide you with a termination template to help will speed up the switching process.
I can’t switch because I rent my business property
If your business tenancy agreement states that you have to pay energy costs directly to you Landlord, then it’s likely they will handle the energy contracts, but this doesn’t mean you can’t switch.
If you think you can get a better deal elsewhere, let your landlord know you’d like to switch direct them towards the energy experts at Make It Cheaper.
If, on the other hand, you pay the business energy bills yourself, there’s nothing stopping you comparing deals and switching. As a courtesy, you should always let your landlord know before you do though.
My energy supply will be cut off while I switch
This is one of the biggest misconceptions about energy switching – when you switch supplier, your gas and electricity is supplied through the existing pipes and cables, it’s just the supplier that changes. This means there will be no disruption to your energy supply and no need for any extra digging or drilling at your premises.
Switching won’t save me enough money
When you run a business, every penny is precious – but if you think the savings you’ll make by switching energy supplier aren’t big enough for you to bother, consider that our energy experts could help to cut your business energy bills by as much as £1,027 a year.
At least 10% of businesses who switched energy supplier for both gas & electricity with Make It Cheaper between August 2017 and August 2018 saved £1,027 or more.
It takes too long to switch
While it’s true that switching business energy isn’t as straightforward as switching home energy, a quick call with our energy experts is all it takes to compare suppliers and find a better deal for your business.
To find out more, or to start an energy price comparison, simply, call Make It Cheaper on 0800 088 6976, or go to ByteStart.co.uk/Compare to get started.
More from ByteStart
ByteStart is packed with help and tips on all aspects of starting, running and funding your business. Check out some of our most popular guides;
Running your business
- 10 Do’s and Don’ts of Writing a Business Plan
- How to Set Up a Limited Company
- Which Types of Insurance Must Your Business Have?
Funding your business
- Fundraising Mistakes that Will Stop Investors from Investing in Your Business
- How the Enterprise Investment Scheme (EIS) can help you raise funding to grow your business
- What to do when the bank says “NO”
- Revolving Credit Facility – The short term funding solution every small business owner should know about
- Invoice Finance – What is it and how can it help my business?
- The way to get paid – 12-Step Action Plan to stop customers from paying you late