Business owners across the UK are paying up to £7.1 billion more than they need to on gas for heating systems and manufacturing processes.
Figures from the ‘Flogas Business Energy Report 2016' have revealed that businesses including warehouses, restaurants, offices, manufacturing companies and public sector buildings are paying as much as 24.4% more than they could be paying if they switched energy suppliers.
Given the potential savings on offer, the report looked into the reasons why more businesses aren’t making the switch, and it seems a lack of knowledge was the biggest barrier, with almost of third of business owners in the dark about whether they could switch and how much they could save.
|Reason for not switching||Percentage of businesses|
|Didn’t know we could save, or how much we could save||32%|
|Thought it would be too time-consuming or complicated||3%|
|Been with the same company for years||19%|
|Want to switch, but haven’t got round to it||13%|
|Couldn’t be bothered||9%|
|Didn’t realise we could switch||3%|
These findings were echoed in a Twitter poll we ran, which also found the biggest reasons for not switching were that business owners thought switching was too time consuming, and they didn't know the potential savings they could make. The good news is, apathy wasn't a problem, so more education for business owners could be what's needed.
— UKPower.co.uk (@ukpower) October 3, 2017
If you think your business is paying over the odds for its energy supply, but you’re reluctant to switch because maybe you think it’s too much hassle, or worried your business will be without power while the switch takes place, check out our energy switching mythbusters below…
Fiction : Energy bills are too confusing.
Fact: 4 out of 5 SMEs state their energy bills are not clear and 1 out of 10 say they don't understand their bills at all. However, the only thing you need to find is a copy of your energy bill and look for the contract renewal date. If you are still unsure, you can use the Small Print Pointer tool which will show you where your key contract dates are located.
Fiction: I'll have to inform my current supplier about the energy switch.
Fact: 6 out of 10 SMEs had a bad customer experience when they engaged with the energy supplier. You surely don't want to be trying to reach your energy provider through email, phone and online just to say the contact is over. No worries! In most cases, we can contact your previous supplier for you or provide you with a termination template which will speed up the process.
Fiction: I can't switch my energy provider because it is a rented property.
Fact: Unless your tenancy contract includes energy costs that must be paid directly to your landlord, you can switch your business energy supplier any time.
Fiction: Switching my energy supplier will temporarily cut my energy supply.
Fact: It is simply not true. Your service will not be interrupted as energy will be supplied through the existing pipework. There’s no need for any extra digging or drilling at your premises.
Fiction : The switching process is too complicated.
Fact: The current process can indeed be complicated, 71% of SMEs believe it should be easier to switch your energy supplier. Furthermore, 1 in 5 businesses who tried to switch supplier ended up staying with their existing provider.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.