One of the biggest expenses for small businesses (SMBs) is probably the cost of gas and electricity. But by not moving to better deals when contracts expire, many companies like yours are overpaying hundreds of pounds a year for energy.
The Carbon Trust found that small business concerns about energy costs increased from 46% in 2016 to 67% in 2019.
That’s why it’s important to research the corporate energy market to find providers that offer the greenest options for small businesses and have the lowest daily and monthly rates. You can achieve this by conducting a business energy comparison, enabling you to gain a better understanding of the level of service they provide.
The Dilemma of How to Deal with Soaring Energy Bills in the UK
Small businesses across the United Kingdom are struggling to make ends meet due to rising energy costs, other rising costs, and the rapidly declining purchasing power of consumers.
Inflation in the United Kingdom hit a 40-year high of 10.1% in July, 2022 as food and energy prices continued to soar. At the time, the Bank of England predicted that inflation would peak at 13.3 percent with average energy bills (which are capped) rising sharply in the fourth quarter and surpassing £4,266 ($5,170) annually by early 2023.
A director at Ofgem recently resigned in protest of the agency’s decision to increase monthly bills by hundreds of pounds. The head of the watchdog claimed they did not do a good job of striking a “balance between the interests of consumers and the interests of suppliers.”
Wage growth in the United Kingdom lagged behind the rising cost of living in the second quarter of 2022, leading to the steepest quarterly decline in real wages on record. A new survey showed that consumer confidence was at its lowest level since 1974.
Commercial Energy Users Take on Rising Energy Costs
“While the energy price caps do not apply to businesses directly, millions of small business owners are still experiencing increased energy bills at a time when costs are rising in most operational areas,” said Alan Thomas, U.K. CEO at insurance firm Simply Business.
At the same time, consumer purchasing power is going down because Brits are cutting back on non-essential spending, which hurts the books of SME owners.
How Do I Change My Company’s Energy Supplier?
As your current contract nears its end date, you should consider changing your gas and electricity suppliers. Ideally, you should set aside a month to see if a cheaper deal is available. This can be done using our comparison service.
You must notify your current supplier, who will ask you to produce a final meter reading. The new supplier will have to handle all management tasks related to the switch itself. You get the same power through the same pipes and cables, so you don’t have to do manual labor on site. The only exception to this is if a smart meter is installed as part of the switch.
How can I Cut Back on My Business Energy Costs?
Switching to a cheaper rate is the easiest way to cut your energy bills, but you can also save money by using less energy in your business, such as by improving insulation or blocking drafts. Doing simple things can help keep temperatures consistent, and installing motion-sensitive lighting controls can reduce power consumption.
You can also ensure that all machines or devices are turned off when not in use and that the devices are working efficiently. If you can work nights and/or weekends, you may also be able to take advantage of metered plans that offer cheaper electricity.
What Happens If I Relocate My Business?
If you’re moving, it’s important to let your gas and electricity suppliers know in advance. They may offer to “port” your contract to the new location or ask you to terminate the current arrangement and start over at the new location.
Alternatively, if you are able to move at the end of your current contract period, you can explore the market for a new energy provider and select a plan that works best for your business in its new location.
Final Thoughts
This is a good time to check if there are cheaper rates on the market compared to our exchange service. If you cancel your existing subscription and switch to a new provider, your old provider may charge a cancellation fee.
However, the savings you make by switching to cheaper offers can offset those costs. It is important to consider the duration. Doing so will also ensure that you get the best deal over the long term.
