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Do you need to break up with your energy supplier after Valentine’s Day?

It’s the week after Valentine’s Day - your flowers have died and the champagne has turned sour. Everybody seems to have returned back to a sober reality – so with a heavy love hangover, and in the absence of any rose-tinted glasses, perhaps it’s time to reconsider some of your business supplier relationships. The most obvious place to start would be with your business energy supplier. Today, the Competition and Market Authority (CMA) released a report which found that both domestic and non-domestic customers could save money if they shopped around for a better deal on their energy. It found a large group of ‘loyal’ customers who rarely, if ever, change their energy supplier. These so called sticky customers tend to pay far higher premiums than the customers that regularly switch between suppliers, looking for a better deal.

Small businesses suffer in the UK energy market

Importantly, the report found that it was not just individuals or domestic customers who were ‘sticky’ but businesses were also relatively immobile. This applies in particular to smaller businesses which lack the resources needed to leverage suppliers and get cheaper prices. The report also suggests that because of the energy markets non-transparent nature, and a lack of energy expertise on behalf of small businesses, they often prove unable to negotiate with suppliers. Clearly then, businesses who are prepared to break-up with suppliers and shop around can secure themselves a much better deal than those stick in long and loveless marriages. This report also suggests that businesses, and particularly SMEs, might be better off seeking help from someone who knows the market and can negotiate effectively. The investigation has also raised concerns about a number of other industry practices that are proving harmful to business. Rollover and deemed contracts, which tend to be applied to businesses if they fail to renew before their contracts end-date have left many business energy buyers paying a far higher premium than those on retention contracts.

Key percentages %

Percentage rise in SME energy prices - 9.5%

Percentage difference between rollover and retention contracts - 33%

Percentage of microbusinesses on a rollover contract in 2013 - 24%

Business energy brokers get cheaper prices

By choosing an energy broker like Utility Helpline you will be able to secure a better deal on your energy. At Utility Helpline we understand the energy market and are not put-off by opaque price structures or predatory contracts. Currently, too many small and medium sized businesses are being treated as if they were individual, domestic consumers. By letting Utility Helpline match you up with an energy supplier, you will gain negotiating power and secure the upper hand in the supplier relationship. And because we partner you up with a dedicated Utility Helpline adviser, there is no need to worry about remembering contract expiry dates. Our advisers will always be there for you – letting you know well in advance when it’s time to renew.

Published by Utility Helpline on