Business Energy Price Update - January 2012

Despite all of the 'Big 6' energy companies having recently announced price cuts for households, businesses are more likely to see a rise than a reduction in their energy bills this year, according to Make It Cheaper. Its monitoring of price movements shows that businesses coming out of contracts are facing increases of more than 50%, unless they can find a better deal before being locked-in for another year by their existing supplier.

                             Av Current Price        Av Renewal Price       Av Acquisition Price

Business Electricity    9.3p/kWh                    14.25p/kWh               10.15p/kWh

Business Gas             2.5p/kWh                    4.5p/kWh                   2.9p/kWh

Even acquisition prices - offered to businesses switching supplier just before the end of their contracts - are still likely to result in a slight increase in their energy bills. However only around 10% of businesses actually manage to switch because the majority fail to act accordingly during their renewal window and end up being 'rolled over' into new contracts.

Jonathan Elliott, managing director of Make It Cheaper, commented: "Businesses expecting to sit back and watch their energy bills come down because of the price cuts announced by the Big 6 should think again. Business contracts typically renew once a year and when they do it's quite common to see rates go up by 50% as contracts are automatically 'rolled over' into new 12 month terms. The best prices are only available to those who are proactive about shopping around during their renewal window and then manage to avoid being rolled over by sending a termination letter to their supplier. There is a knack to this and that's where we can help out because we're doing it for thousands of businesses a week - even if it's just to remind them that their renewal window has opened."

One business currently facing this dilemma is Whites Seafood & Steak Bar, a family-run restaurant, located in a Grade II listed building in the historic Old Town of Hastings (East Sussex TN34 3EA). Owner, Ellie Chapman, is paying 8.8 pence per unit for her electricity but was recently quoted 13p to stay with the same supplier. On the restaurant's consumption of 76,000 units, this 47% increase (described by Ellie as 'astronomical') means that the bills would be going up by £3,192 a year unless she acts fast before her renewal window closes in two weeks' time. Ellie has so far received a quote for alternative business electricity rates from Make It Cheaper of 9.3p, along with a template termination letter to send to her current supplier that will prevent Whites from being locked into paying the higher amount.

For free and impartial advice about business gas and electricity prices, contact Make It Cheaper on 0800 970 0077 / www.makeitcheaper.com.

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Note to editor: See Make It Cheaper's campaign to change the energy 'Rollover' rules www.makeitcheaper.com/ofgem

About Make It Cheaper:  Established in 2007, Make It Cheaper is the number one destination for businesses to get a better deal on their utilities and other services. Based in Central London with 110 staff, the self-styled 'saving experts for business' receive more enquiries and arrange more new contracts than any other business price comparison service. These include the business customers of major domestic price comparison services with whom Make It Cheaper has partnerships, as well as many trade associations and charity membership organisations. Acting on behalf of all these customers with total impartiality and free-of-charge, Make It Cheaper offers year-on-year savings across a range of products including: business energy, telecoms, insurance and merchant services (chip & pin). By switching suppliers or helping to renegotiate deals with existing ones, it will typically save over 30% of costs - as well as a considerable amount of time that its customers can then spend on running their businesses.  Make It Cheaper is currently ranked 39th in the Sunday Times Fast Track 100.