In its latest State of the Energy Market Reports, Ofgem has highlighted the fact that small UK businesses are paying around 50% more for gas and electricity than large businesses. The primary reason for such a state of affairs comes down to switching culture within this competitive marketplace.
The industry regulator has detailed that small and micro businesses within the UK are paying these higher rates as big business customers are better able to negotiate more cost-effective deals with suppliers and, as such, small businesses tend to switch less frequently than their larger counterparts.
The market stands to benefit those customers who shop around and around 60% of customers have stayed on their original standard tariffs which attribute poor value for money. However, Ofgem has reported that this number is starting to fall. 58% of customers have never switched or only switched supplier once.
In light of these findings, if you are a small business, there is a likelihood that you are paying an inflated tariff for gas and electricity. If you haven’t compared tariffs – or don’t compare them regularly enough – you could be missing out on some of your business’s easiest savings. Contact Smarter Business and talk to your dedicated account manager to find out more about how we can negotiate the best tariffs for your business for gas and electricity to make sure you are getting the best out of your energy contract.