8th September 2016

7 Myths Busted for SMEs Thinking of Switching Energy

The latest energy market review has found that there are still not enough small businesses switching electricity and gas suppliers.

In fact, the Competition and Markets Authority said that UK SMEs could be saving £180 million each year! So with this in mind, here is our Energy Myth Buster from our industry insider to demystify switching your business.

Myth 1
If I change electricity or gas provider my supply will be interrupted.
Energy suppliers are governed by OFGEM and switching off your supply is not an option! All that you will see is the bills will change from one supplier to another. 1
Myth 2
I will get a better deal by staying with the renewal from my current supplier.
It’s a bit like your personal car insurance renewal; if you automatically renew, it is likely that you could have achieved 30% savings by switching. Energy suppliers make most of their profit from those who do not switch regularly.  2
Myth 3
It is best to wait until a month or two before my renewal date before I begin shopping around.

It is better to start shopping around 3-6 months before your contract renews. This gives plenty of time to ensure that you are getting prices from multiple energy suppliers.

Myth 4
The switching process is to hard and takes too much time when compared with the benefits.
The majority of SMEs are on “non half hourly” meters that are similar to a domestic tariff structure. This means that you don’t need to get lots of annual data – everything you need to know is on your bills. Furthermore, it is now possible to switch these business via online price comparison websites.  4
Myth 5
My business property is rented therefore it’s down to my landlord to switch and save.
Most businesses pay their gas and electricity bills directly, even those who don’t own the building. If you get energy bills then you can switch. 5
Myth 6
It’s difficult to get transparency of pricing for business energy tariffs.
There are many energy brokers in the UK who can compare multiple deals from energy suppliers, give you a report and manage the switch. Less common are the companies who can provide online price comparison and switching – BUT – they do exist. 6
Myth 7
New energy companies are really putting large energy suppliers under pressure to be fairer and more transparent. 
Whilst there are many more suppliers in the market, “The Big 6” still have 90% of the SME market. In all honesty, you probably wouldn’t know the younger contenders given that they are not a household name yet. This why you need a broad scan of the market and not just the usual suspects. 7

So there you have it, 7 myths busted for those SME’s thinking of switching energy! If you have any other questions that you’d like one of our Switchologists™ to demystify for you then simply get in touch.  You can download this guide in pdf here: 7-myths-by-switchmy.

#Energy Guides
Rachel Hurley

Rachel is one of the SwitchMy content contributors. It's Rachel's job to hunt out the best news and content to arm our customers with everything they need to know about business energy and the pros of switching.

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