Business energy switching up by a third
100,000 more businesses will change their energy supplier this year than last year as switching levels rise by over a third from 14% to 19%, according to the price comparison service Make It Cheaper.
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
Source: Make It Cheaper February 2014
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.