UK SMEs risk overpaying on energy bills by up to 50%

Energy companies have been given the green light by the government to chase unpaid bills again as more lockdown restrictions ease and unfortunately UK SMEs can't rely on coronavirus-related payment holidays anymore. As this historic debt is now chased many small businesses in the UK will be reviewing suppliers and looking at how they can reduce costs.

In a letter sent to their suppliers, Ofgem explained that although they are aware many customers are still struggling to pay their bills, it would be impossible to halt debt collection indefinitely. Small businesses in the UK have a huge struggle now to reopen and address historic debt that has been put on hold during lockdown but hasn't disappeared. Many of these business will have to look at other ways to reduce costs down as they adjust to the challenge of reopening with added costs and stress from social distancing measures.

According to Smarter Technologies small businesses in the UK are estimated to pay an average of £289 more than necessary for electricity every year. Some statistics even suggest that this figure is often as high as £1,100 a year, or as much as 50 percent of the annual bill for many of these SMES.

So many times these high energy prices is due to energy suppliers locking small businesses into long term 'deals' that are unfair and not competitive. This unfair reality has prevented many small businesses in the UK being able to switch to better deals and some contracts can go so far as to block a move to a new supplier.

The SME club offers free help and advice and we have an energy broker as a partner who can help you manage your energy bill and help you discuss what options are available to you. Speak to us if you need help and feel you are stuck in a restrictive and unfair contract.

Remember that if a UK SME energy customer does not notify the supplier of their intention to leave at the end of a fixed deal, they are often rolled over onto a new contract which is often as much as twice as expensive as the original contract deal.

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