Switching energy suppliers might not be the first thing that comes to mind when you think about cost-saving strategies, but it’s one of the easiest and most impactful changes you can make. 

Here are a few compelling reasons why switching could be the right move for your business:

• Competitive Rates: The energy market is highly competitive, with numerous suppliers offering various tariffs and deals. By switching suppliers, you can take advantage of lower rates that could significantly reduce your monthly bills.
• Fixed-Rate Contracts: Many suppliers offer fixed-rate contracts, which means you’ll pay a consistent rate for the duration of your contract. This can protect your business from market fluctuations and make budgeting easier if you get the contract at the right time.
• Better Customer Service: Not all energy suppliers are created equal. If you’ve been unhappy with your current supplier’s customer service, switching to a provider known for excellent customer support can improve your overall experience.
• Sustainable Energy Options: If your business is committed to sustainability, switching to a supplier that offers green energy tariffs could help you reduce your carbon footprint and enhance your brand’s reputation.

If you don’t switch to a new contract when your current one ends, your supplier will typically move you to their out-of-contract rates. 

These rates are often much higher, sometimes up to 50% more than your previous rates. Because these higher rates benefit suppliers, they have little motivation to encourage you to switch to a better deal.

A study by the Competition and Markets Authority (CMA) revealed that 45% of microbusinesses (generally those with fewer than 10 employees) were stuck on their suppliers’ most expensive default tariffs. 

As a result, these businesses were collectively paying about £180 million more each year than they would in a more competitive market.

In response to this issue, new rules have been implemented to help microbusinesses avoid being overcharged. However, it is still very important to be proactive when it comes to your energy supply.

Whilst switching energy suppliers is a straightforward process, identifying the best possible deal for your business can be exceptionally tricky.

It’s important to approach it with a clear strategy to ensure you’re making the best decision for your business. 

Here’s a step-by-step guide to help you through the process:

Start by checking the terms of your current energy contract. Note the end date and any exit fees that might apply if you switch before the contract expires.

Use a trusted comparison service or consult with an energy consultancy like National Utility Hub. Comparing tariffs from different suppliers can help you identify the best deal for your business needs.

Understanding your business’s energy consumption patterns can help you choose a tariff that best matches your needs. Look at your past bills to get a clear picture of your usage.

Once you’ve shortlisted potential suppliers, request quotes based on your energy usage. Be sure to ask about any additional fees or charges that might apply.

Before making a decision, carefully review the terms of the new contract. Ensure there are no hidden costs and that the contract aligns with your business goals.

After choosing a supplier, they will handle most of the switching process, including contacting your current supplier. The process typically takes a few weeks, and there should be no interruption to your energy supply.

We appreciate that managing all this while running a business can be extremely challenging.

At National Utility Hub, our expert analysts can take the burden off your shoulders by ensuring that all your energy figures are thoroughly checked and kept up to date. 

We’ll also make sure you receive the most competitive and beneficial quotes from suppliers, so you can focus on running your business.

Yes, you can switch to a new energy supplier if you owe money to your current one, provided that you’ve been in debt for less than 28 days. The amount you owe will be added to your final bill from the old supplier.

However, if your debt has been outstanding for more than 28 days, you’ll need to settle that balance before you can switch to a new supplier or tariff.

If you have a prepayment meter and owe your current supplier up to £500 for gas and £500 for electricity, you can still switch to a new supplier.

If you receive a welcome letter or final energy bill that you didn’t expect, you may have been switched to another supplier without your consent. This can happen due to:

• A mistake by the supplier, such as confusing your address with someone else’s, known as an “erroneous transfer.”
• Being misled by a salesperson.

In such cases, you are entitled to £30 from either your old or new supplier if the switch wasn’t authorised by you. 

However, small businesses are not eligible for this compensation but can still file a complaint with Ofgem.

A fixed-rate tariff locks in the price you pay for each unit of energy, protecting you from price increases. 

However, if energy prices drop, your rate will remain the same.

When choosing an energy tariff, consider your energy usage and personal circumstances. 

Be aware that if you switch tariffs or suppliers before your fixed-rate term ends, you might have to pay an “exit fee.”

While energy costs are a significant part of your utility expenses, other services such as water and waste management can also impact your bottom line. 

Just as with energy suppliers, switching service providers for these utilities can unlock substantial savings and improve service quality.

Since the deregulation of the water market for businesses in the UK, SMEs now have the freedom to choose their water supplier. 

This allows you to shop around for the best rates and services, just like with energy suppliers. 

Switching water providers can lead to lower tariffs, improved customer service, and even tailored water efficiency services that can reduce your overall consumption.

Waste management is another area where SMEs can save money by switching providers. 

Many businesses are unaware that they can negotiate better rates or switch to a provider that offers more comprehensive recycling options, which can not only save money but also align with your sustainability goals. 

Consider assessing your waste disposal needs and shopping around for a provider that offers better rates or services that better fit your business.