Switch Business Gas and Power to Save Your Business Money
The time is now to switch business gas and power! Energy industry regulator Ofgem recently ran a collective switching trial in which energy customers have saved at least £261. Although the trial tested individual consumers, the same can apply to businesses throughout the UK.
What is collective switching?
Collective switching is when a group of customers swap supplier in one go. The economies of scale enable representatives to negotiate lower prices.
How the trial worked:
- Ofgem approached 50,000 people who had typically been on the same variable tariff for six years.
- Approximately one in five agreed to switch providers.
- The customers received letters showing how much they could save by moving to negotiated collective switch tariff.
What made the trial different to typical supplier switching situations is that customers did not have to provide complex information about their existing tariff in order to see a personalised savings calculation.
The results of the energy switching trial
- 22.4% switched (this can be compared to a 2.6% switching rate in a trial control group of customers who did not receive any information about the offer.)
- The customers who switched achieved average savings of about £300
Group switching success
As a result of the successful trial, Ofgem is planning a larger collective switching initiative involving over 200,000 customers in the next few weeks.
Record number of energy switches in 2017
The UK’s competition authority recently revealed that consumers were collectively losing out on £1.4bn of savings by choosing not to switch suppliers.
However, 2017 saw the highest rates of energy supplier switching for nearly a decade:
- 18% of consumers switched electricity suppliers
- 19% of consumers switched their gas suppliers
Read more about 2017’s switching stats.
What the success of the trial tells us
The results of the trial suggest that when the process of switching is simplified, more people are likely to switch. Many customers on poor value standard tariffs rarely switch because either they think it’s too much hassle, or they may not realise how much they stand to save – or both!
Switch business gas and power the simple way
When you decide to switch business gas and power, using the services of an energy broker takes the hard work out of energy procurement and management.