Article Cabinet » Business » Why UK SMEs should stick with independent energy suppliers
Why UK SMEs should stick with independent energy suppliers
by: Graham Paul
Total views: 21
Word Count: 531
Many businesses have come to the conclusion that sticking with the ‘big 6’ electricity suppliers means that they are getting the most efficient service, fairly accurate billing and of course, the best price. But often, this is most simply not the case.
Other independent suppliers are SMEs themselves and understand how important it is for small businesses to bolster their profit margins, especially in today’s economic climate.
Leading independent electricity supplier to small businesses, Electricity4business (E4B) doesn’t spend its profits on sponsoring the cricket, or on pumping millions of pounds of their customer’s money into the 2012 Olympics – but uses its profits to ensure that it has the most efficient IT systems in the industry by encouraging customers to self-serve and be in charge of their account to reduce estimated billing.
This means that customer’s bills are extremely precise – its SME customers aren’t ever ‘caught short’ with a large bill to pay at the end of the year contract and don’t need to pay over the odds for their electricity.
Recent findings of research commissioned by Nielsen Media found that the big 6 providers spent around £58.5 million on their marketing during just the first half of 2008 – which is a huge £10 million more than during the same time last year(1).
The first half of this year has seen all the big 6 announcing two separate rounds of price hikes – meaning the average gas and electricity bill has now increased significantly. And going into the winter when energy usage is significantly higher – this is not good news for SMEs and households alike.
Although these price increases relate to the domestic market – don’t be fooled to believe that these rises don’t have a knock-on effect upon commercial electricity too.
Even the £58.5 million spent in the first 6 months of 2008 (coincidently in tandem with the price rise announcements), doesn’t mean that it improves the service or price of SME business electricity. It only means that more SMEs are potentially sacrificing their profits whilst being at risk of plunging into fuel poverty at the same time.
Other research commissioned by E4B earlier this year shockingly found that 20% of SME businesses are currently in fuel poverty – with another 40% fast approaching the threshold(2).
A combination of the two rounds of big 6 price rises, emerging industry research and the rising numbers at the bottom of the electricity bill, means businesses are fast learning that it is time to get smart in order to survive.
With businesses throughout the UK being faced with the credit crunch, it is paramount that SMEs find out their contract renewal date with their current supplier and hand in a notice of termination in plenty of time in order for them to shop around and take advantage of the best price.
For more information about knowing when to submit your termination notice to your current electricity supplier, visit http://www.electricity4business.co.uk/energy-white-paper to download a free guide to understanding the small print of business electricity supply contracts.
(1) - Available at: http://www.brandrepublic.com/marketing/News/841660/Energy-brands-ramp-spend-amid-price-hikes/
(2) - Available at: http://www.electricity4business.co.uk/_assets/files/SMESurveyFinalWhitePaper.pdf
About the Author
Electricty4Business (E4B) is a supplier of cheap business electricity for the small and medium sized business market.
UK Media enquiries, please contact:
Emma Churchill
Electricity4Business
t. 01908 628504
e. echurchill@electricity4business.co.uk
Lisa Boustead / Nick Clark
Nelson Bostock Communications
t. 020 7229 4400
e. lisa.boustead@nelsonbostock.co.uk