Turning down the thermostats and switching to LED lights will certainly decrease your company’s energy bill, but did you know there’s a simpler, better way to do so?
Instead of making changes in your office that are either cumbersome or costly, you should first take a look at your energy provider. A new provider could save you up to 65% on your energy bill just for switching over—we’ll show you how.
Don’t Invest in Energy Efficiency. Switch Your Bills!
Lowering your energy consumption is a great initiative to reduce your carbon footprint. The FSB reports that 58% of small and medium business (SMEs) have already made changes to improve energy efficiency. These initiatives all have costs and time associated with them. The Department of Energy and Climate Change (DECC) estimates that the average payback of such schemes is under 18 months with savings of up to 25%.
Contrast that with SME energy switching data that shows 64% of businesses won’t be switching suppliers this year. The majority appear happy with their bills or just don’t have the time. However, it’s really easy to make a change that could cut your costs immediately and takes just a few minutes of your time.
Be Careful with Renewal Letters
The regulator Ofgem made changes a few years back requiring energy suppliers to send SMEs reminders when their contracts come to an end. Renewal letters provide all manner of information and include new rates when your current contract expires. You’ll automatically incur the new charges if you’re happy with the status quo.
What these renewal letters omit to tell you are your current tariff rates. You therefore can’t compare what you’re currently paying against the new proposal. Much like the insurance industry, you have to compare last year’s rates by finding the contract you previously signed. Only then will you see that an increase of 40% or more has been applied. The FSB estimates SMEs overpay £230 million each year from simple inertia.
With high renewal rates on business electricity contracts, it makes sense to concentrate on finding the lowest prices in the market that have an immediate payback to your bottom line. If you’ve never switched, are out of contract, or recently moved premises, then you could save even more. The most expensive rates compared with the cheapest are different by 65%!
Take Five Minutes to Save 40% - 65% on Your Bills
While it seems that we shouldn’t have to be switching providers each year, unfortunately it’s a necessary evil. Consumers are bombarded with advertising encouraging them to switch all manner of utilities from car insurance, broadband and, of course, energy.
Businesses can now take control of their costs, as there are various options to find the lowest prices in the market.
By switching, you’re guaranteed to:
- Move to lower prices than your renewal quote
- Keep your gas and electricity supply active during the switch
- Have your switch undertaken with minimal fuss and paperwork
First, you’ll need to choose a new supplier! While your current supplier could be cheaper than your current tariff, it’s likely other companies will beat those prices.
Using a price comparison service mean they’ll find the cheapest prices, work with the new supplier to transfer the service, and won’t charge you for their services. There are now services that show you all key prices, such as Utilities Direct, so you can compare the costs of electricity or gas online.
Once you have chosen a new tariff, your new provider moves you over at the end of your current contract. Just remember to take meter readings to ensure your bills are accurate, which will keep your prices as low as possible.
By Jason Smith of Business Electricity Prices.