Here at Great Annual Savings (GAS), we’ve worked with thousands of UK businesses to save them time and money on their energy. When you’re as experienced as we are, you become accustomed to hearing the same misconceptions about a complex industry with so many pitfalls.
In the following piece, we put to bed some of the biggest business energy myths out there when it comes to switching.
Myth #1: It’ll be cheaper for me to just go directly with the supplier.
From our experience, this is very rarely the case.
It would always be advisable to consult an energy procurement expert at the start of the process. Those who specialise in the sector will often have formal relationships with the UK’s leading energy suppliers. These partnerships allow them access to prices (on your behalf) otherwise unavailable to those in the business world.
Next time you’re looking to renew, try comparing your supplier’s offer with a deal sourced from a consultant, you’d be surprised at the potential savings on offer.
Myth #2: Switching isn’t worth it, it’ll be far too time-consuming for me.
Here’s the beauty of working with energy procurement consultants: They do the hard work for you.
They’ll speak with several leading suppliers, source you the best prices, then present them to you when they’re done. All you’ll need to do is choose which option is best for you and they’ll process the paperwork on your behalf ready for you to sign, allowing you get on with what you do best: running your business.
Myth #3: I’ll find the best deal if I use a price comparison website.
One of the biggest myths out there. Despite their reputation, comparison websites aren’t as convenient for switching business energy as they are for domestic energy users. The factors influencing a business energy price far outnumber those determining a domestic rate.
Many people using these sites believe, mistakenly, that the prices they’re viewing are the best available. In fact, a recent energy market investigation report by the Competition and Markets Authority (CMA), revealed that 60% of the best energy deals are not available on switching sites. This is predominately down to the fact that suppliers don’t routinely publish their best tariffs, especially not on a price comparison site.
Myth #4: My premises are small, so it’s pointless carrying out an energy audit.
An energy audit isn’t just for big businesses. It doesn’t matter what size your premises are, if you’re using more energy than you need, then you’re wasting money.
Just because you don’t have numerous floors or large-scale machinery, it doesn’t mean you can’t make changes that will make a tangible difference to your business. Even small-scale alterations in the way your staff go about their everyday activities could see a surprising decrease in your energy consumption.
Myth #5: I must wait until my current contract is nearing expiry before sourcing a new deal.
No matter how long is left on your current deal, you are entitled to negotiate a new contract. Once you’ve agreed terms and signed on the dotted line, your new tariff will go live immediately following the completion of your current term.
This tactic is often employed by businesses who are looking to take advantage of any dips in the energy market, or those concerned that prices will have increased come their renewal date.
Myth #6: I can’t switch my energy provider because it is a rented property.
Unless it is specifically stated under the terms and conditions of your contract, this is not true.
If you’re renting your premises and directly responsible for paying the energy bills, then you have the right to choose who your supplier is.
Myth #7: I’ll get the best price on a one-year contract.
Although you might perceive a one-year contract as possessing less-risk, bear in mind that future energy prices are volatile and likely to fluctuate over time. We need only look at the current climate, including the impending impact of Brexit and the recent rise in inflation, to realise how unstable the market is.
In such an environment, signing a longer-term contract now (on today’s rates) could shield you from future price increases.
For more hints and tips on switching business energy, check out our definitive 8 things you need to know guide.