SMEs paying £0.5bn too much for energy
Posted on in Business News , Cycles News , Creative News, Outdoor News
Energy firms make £500m in excess profits from small business customers, concludes watchdog
Small businesses are collectively paying around half a billion pounds more each year for gas and electricity than would be the case "had competition functioned more effectively", an analysis of the profitability of UK energy firms has found
The Competition and Markets Authority (CMA) said that between 2009 and 2013 average prices offered by the "big six" companies were around 14 per cent above the "competitive level" in the SME segment.
‘This equates to SME customers paying around £500million more on an annual basis than would have been the case had competition functioned more effectively,' it said.
‘For SMEs, the evidence suggests that average prices have been substantially above the levels we would expect to see in a well-functioning competitive market.'
The CMA also revealed that on average rollover tariffs for small and microbusinesses are 29% to 36% higher than retention tariffs for electricity and 25% to 28% higher for gas.
Despite this, a survey of 7,000 people found more than 34% of respondents had never considered switching provider.
The CMA added that this is due to a lack of awareness of what deals are available, confusing and inaccurate bills and the real and perceived difficulties of changing suppliers.
See how much you could save
Get professional, independent and impartial advice to ensure you secure the best energy prices for your business.
USC are completely independent which means they are not tied to any particular provider. They have formed good relationships with every major electricity and gas supplier in the UK to ensure you can get the most competitive contract available. They will use their expertise to contact suppliers and undertake all negotiations on your behalf providing you with a proven specialist service which can reduce your costs and take the hassle out of dealing with utilities companies.
Why spend hours dealing with electricity and gas suppliers haggling over tariffs and contracts when USC can do it all for you?
Simply return the letter to USC and they'll take care of the rest.
Click here to find out more