Are business owners paying too much for their electricity?

posted by 4 years ago in Features

Statistics show that a whopping 40% of SME’s have not changed their energy supplier in over 5 years! The chances are that these businesses are paying way over the odds for their business electricity, and there’s really no need because switching is such a simple process!

Why are businesses reluctant to switch energy providers?

Some of the reasons we have heard for not switching, or not switching energy providers sooner include:

  • “I haven’t had the time”
  • “I don’t know how to do it”
  • “I don’t really understand how energy is priced”
  • “I don’t want my supply to be disrupted”

If this sounds like you, allow us to explain why you need not worry about switching your business energy!

“I haven’t had the time”

How much do you charge for your time per hour? £10? £50? £100? £500? Maybe more? Your time is incredibly valuable and perhaps you feel it is better spent on actions that generate sales revenue for your business. But think of it like this; if you spend a total of 30 minutes (yes, that’s all it takes to find a better deal and action the process!) and you save several hundred pounds from that action, you’re making a better profit from saving money than from sales!

“I don’t know how to do it”

It really is super simple – you enter a few  details on this page and we will do the rest!

“I don’t really understand how energy is priced”

Don’t worry, you’re not alone! Many small business owners are flummoxed by talk of ‘Kilowatts’ and ‘Standing charges’, but trust us, it’s dead easy!

Standing charge – this is a small amount per day that you pay your supplier regardless of how much energy you use. This is typically somewhere between 22-30 pence per day, but some people are paying an eye-watering 70 pence per day – that alone could be £175 per year down the drain.

kWh – this is amount you pay per unit of energy used (a Kilowatt) and generally speaking one unit on your meter equates to one kWh of energy. This can be as little as 14p per kWh, but you could be paying a lot more!

“I don’t want my energy supply to be disrupted”

There is no downtime and no disruption to your business energy supply when you switch providers – so panic over!

How much could I be saving?

Let’s say you’re a micro business using 7,500 kWh of electricity per year and you’re currently paying 20 pence per kWh, but could be paying 14.5 pence per kWh – your saving per year would be £412.50 per year!

And that’s just for a very small business.

Imagine how much you could be saving if you’re a medium business with larger premises?

Table of average business energy usage

If you were a high consumption energy user, using 35,000 kWh per year and paying 20 pence per unit – that would equate to a pretty hefty saving of £1,925 per year. That would get you over 687 pints of beer in Wetherspoon’s (or 300 in London…) and I bet I know your team would rather you spent it on beer than business electricity! *We’re not suggesting you do.

How do I find out what I’m paying for my electric?

If you get a copy of a recent electricity bill and take a look on the back you will see the breakdown of cost.

Here it will state the standing charge that you are paying and the cost per kWh.

If this is more than 14-16 pence per kWk then click here and get a better price today!