SME's missing opportunities to reduce operating costs
- Significant numbers of businesses on poorly-performing contracts
- Failing to shop around and negotiate better deals
- Failing to use technology to reduce consumption
24% of SMEs are being charged expensive out-of-contract rates for energyOut-of-contract rates are notoriously expensive. When businesses fail to negotiate a fair renewal price before their energy contract expires, they are normally put on ‘rollover’ contracts which are around 80% more expensive than regularly negotiated contracts. These contracts are particularly problematic for smaller firms, because busy owners often simply forget when their contract is due for renewal.
81% of SMEs do not shop around for the best dealThe report also found that a huge proportion of small and medium firms fail to shop around the various suppliers when renewing a contract. The concern is that many firms seem to be sleepwalking into the first deal they find, without negotiating terms or any favourable rates.
SMEs miss opportunity to reduce energy consumption by using technologySmart technology has huge potential to help small and medium firms reduce their energy consumption, and overall operating costs. The Opus report found that small business leaders were failing to make use of smart meters to help manage their bills. While more than half of the small businesses had installed smart meters, many owners reported not knowing how to use the data to moderate consumption – or even how to obtain this data. Smart meters, as well as other technologies like energy efficient light bulbs, have huge potential to help businesses save money and reduce their emissions. The problem is that owners do not know how to use them effectively. With the proper advice, businesses can better secure their cashflow by using less energy, and paying less for the energy they do use. Our team of market experts are always on hand to guide customers through the pitfalls of the energy market Speak to a team member today to find out how to secure your energy future. Call: 0800 043 0423
Published by Utility Helpline on
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