Overheads can make or break a small business. But, whilst it’s comparatively easy for a small business to shop around for a cheaper office or hire to its budget, ensuring it’s getting the best deal on its utilities isn’t always as straightforward. Fortunately, the Federation of Small Businesses (FSB) is launching a new energy comparison service that it hopes will help shave 23% off SMEs’ gas and electric bills.
Recent FSB research has revealed that small businesses are being let down by the energy market, with 70% finding it difficult to compare energy tariffs and 43% admitting they’ve never switched energy suppliers. Meanwhile, the Competition & Markets Authority has revealed that as many as 45% of SMEs are being placed on default tariffs, which could cost them over twice as much as a negotiated tariff. It also claimed that SMEs are paying approximately £500m more than they would be if the energy market operated in a more competitive manner.
In light of this, the FSB has decided to launch new service FSB Energy – with help from business saving experts Make it Cheaper – to help its members obtain advice on competitive rates, find how much they can save annually by switching tariffs and arrange new contracts. The service will also take care of the paperwork that comes with switching and notify businesses before their fixed price period ends to ensure that they don’t automatically get switched to more expensive rates. On average, it believes this will save businesses almost £1,000 a year on their energy bills.
“Energy is an increasingly important issue for smaller businesses,” said Dave Stallon, operations director at the FSB. “There are many ways they can make substantial savings through the implementation of energy efficiency measures, as well as ensuring they get the best tariff they can on their gas and electricity. Many smaller businesses, however, either don’t believe they can make substantial savings or haven’t trusted the market and the system enough to engage in the process.”
So if you’re a small business looking to save some greenbacks on your gas, head on over to FSB Energy and get involved.