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Business Energy Switching Up by a Third
The number of businesses switching their energy supplier is expected to increase by a third during 2014.
The increase is based on the proportion of businesses expressing an intention to review their energy contracts rising from 51% to 70% over the past 12 months and modelling that uplift against last year's actual business switching numbers, published by Ofgem.
|Intention to Review Energy Contracts||51%*||70%*|
|Actually Review (51% of above)||26%**||36%|
|Actually Switch (54% of above)||14%**||19%|
Jonathan Elliott, founder and CEO of Make It Cheaper, commented: "The furore over energy prices at the end of last year has undoubtedly made more businesses intent on switching. We've already seen the number of businesses calling up for prices and help in switching shoot up significantly compared to this time last year."
Furthermore, Make It Cheaper says its research shows that almost two-thirds (63%) of businesses are expecting the unit cost of gas and electricity to rise again this year, despite the government's focus to keep tighter control over energy prices.
Switching to a new contract can mean a dramatic reduction in the amount a business ultimately pays for its energy. Figures published by Ofgem in December show the average business using both gas and electricity is charged between £3,500 and £6,500 annually, depending on their type of contract.*** Here, for example, are the typical unit rates by contract type that a business can expect to pay today:
|New Contract||Auto-Renewed Contract||Not in Contract|
|Electricity||11p / kWh||16p / kWh||Up to 25p / kWh|
|Gas||4.5p / kWh||6p / kWh||Up to 8p / kWh|
Any business asking Make It Cheaper to arrange a switch of its energy supplier before the end of April 2014 will be entered into a prizedraw for a year's free energy, worth up to £10,000. Call 0800 1884 999.
- ENDS -
* Make It Cheaper Business Costs Outlook Survey 2013 & 2014
** Quantitative Research into Non-Domestic Consumer Engagement in the Energy Market (P.6) https://www.ofgem.gov.uk/publications-and-updates/quantitative-research-non-domestic-consumer-engagement-energy-market
*** Non-Domestic Supplier Information Request(Pp. 10 & 12) https://www.ofgem.gov.uk/ofgem-publications/85211/autorolloversslides021213final.pdf
Examples of businesses switching energy companies this year:
- Annabelle Valentine at The Valentine Gallery in Blandford Forum saved £432 switching her electricity contract to Opus Energy with Make It Cheaper earlier this month: "I can trust this company as I have used their services for many years"
- Likewise, Ruth Morris - who runs a farm near Wrexham - saved £2,543 on her electricity: "Friendly, knowledgeable service. This is the second time I have used this service and will return again next year."
- Gurmail Dokal at Dokal & Sons - a cash & carry business in Southall, London - saved a similar amount (£2,641) by switching electricity to Scottish Power: "With ever rising energy prices and the current economic climate it has become more and more important to keep costs down. Make It Cheaper has helped me get a great 3 year deal that is cheaper than I was currently paying."
- Andrew Wright at Priory Road Post Office in Pontefract saved £1,893 by switching to business gas specialist, CNG , again via Make It Cheaper: "Nice customer relations and very helpful in sorting out all that is required."
- Suzanne Bradshaw at DNA Windows & Home Improvements in Crewe saved a total of £4,740 via Make It Cheaper: "Very helpful. Sorted our electricity in October and now our gas in January. Took all the hassle out of the whole process and was even helpful when other companies were telling me lies to force me to transfer to them. I have had a lot of hassle from these other companies who were lying to try to get the contracts but Make It Cheaper told me what to look out for and assured me the contracts have all been set up successfully."
About Make It Cheaper: Based in Central London with 140 staff, Make It Cheaper has been the No.1 destination for businesses to get a better deal on their utilities since its launch in 2007. Following its acquisition of UK Power in 2012, Make It Cheaper also now provides competitive energy prices and expert advice for households. Its supplier panel includes all of the 'Big 6' and over 20 of the smaller domestic and non-domestic energy companies. For businesses and charities it also offers savings across other overheads including: telecoms, insurance and merchant services (Chip & PIN). By switching suppliers or helping to renegotiate deals with existing ones, Make It Cheaper will typically save over 30% of costs (as well as a considerable amount of time) that its customers can then spend elsewhere. The company has appeared in the Fast Track 100 every year since 2011 and in 2013 it won the titles of 'SME Consumer Champion' & 'SME Most Trusted' at the Energy Live Consultancy Awards. Its 2014 Net Promoter Score, based on 856 customer satisfaction questionnaires completed to date this year, is 70.
Further information: Nick Heath 020 7654 0730 / email@example.com