By Daniel Hunter
It has been widely reported that British Gas will be announcing an increase in domestic energy prices tomorrow (Friday) morning, affecting millions of households across the UK.
It is expected to raise its charges for both gas and electricity by about 8%, adding £100 a year to the average dual fuel bill.
This comes just days before SSE's price rise of 9% takes effect on Monday. There is clearly cause for concern among consumer groups, but what about businesses? If similar trends occur in the business energy market, it could have catastrophic consequences for many organisations.
James Constant, Chairman of the Energy Forecaster, believes more attention needs to be given to business energy prices in order to raise awareness in the market: “The business energy market is in a constant state of flux, with price rises occurring more frequently than people might expect. In the last week alone, three energy supplier have put up their prices for businesses.
"But many business owners are likely to be oblivious to this fact as no one is paying attention to what’s happening with business energy. We know that 7% of UK businesses could actually be forced out of business if their energy bills continue to rise by 15% every year and yet just over a fifth of UK businesses say they do not have the time or motivation to switch supplier.
“Domestic energy prices are a constant talking point, but it is important that businesses do not bury their heads in the sand when it comes to their energy bills. Those people responsible for their businesses’ energy need to start actively engaging in the energy market if they want to avoid being caught out by price increases. Despite prices going up, a business can still save an average of £868 by switching supplier. Furthermore, a typical business switching from the highest electricity unit rate on the market to the lowest would be in line to save £6,665 a year.
“This just goes to show how beneficial simply checking tariffs can be for businesses. They must regularly compare prices — right down to the decimal point — if they want to ensure they are not only getting the best deal, but making some significant financial savings at the same time”
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