DCP228 and Business Electricity
What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...Read More
Businesses are being rolled over and locked into energy contracts without their permission, SwitchMyBusiness.com has found, alongside a catalogue of other issues.
The findings are striking – we found that 18.4% of businesses have been automatically rolled over onto a new contract without their permission and a further 16% don’t know whether they have been a victim of auto-renewal.
The study comes in the wake of the Competition and Markets Authority (CMA) report which found that UK SMEs are unnecessarily losing £500 million a year on energy.
While Ofgem and some energy suppliers have made steps towards making the business energy market fairer, the practice of ‘auto-renewal’ – where businesses are ‘locked in’ to another fixed-term contract without their express permission – continues.
The SwitchMyBusiness.com research also showed that more than 30% of small businesses have been shunted onto a ‘deemed contract’ (30.4%) with the same supplier at the end of a fixed contract, leaving them paying up to 80% more.
A further 16.8% are unsure whether they have been put onto a deemed contract, and the majority of UK SMEs stated they have had problems understanding their energy contract at all (50.4%), a sign the business energy market urgently needs more clarity.
Knowing how to switch supplier is vital if businesses are to avoid getting ripped off or paying more than they need to. But more than a quarter of smaller to medium-sized businesses (25.6%) do not fully understand how to terminate their current business energy contract, meaning as many as 1.3 million businesses are losing out on better energy deals.
“These findings prove that the UK’s SMEs are still getting a raw deal,” says Ivan McKeever, CEO of SwitchMyBusiness.com. “Smaller to medium-sized businesses are in a uniquely challenging position: the business energy market lacks the transparency that consumers now have and smaller businesses do not have the resources to liaise with lots of suppliers and negotiate a good deal.”
The research shows that much more needs to be done to help small businesses with their energy bills. SwitchMyBusiness.com has publicly appealed for the Government to take urgent action:
As we have proven, cheaper business electricity and gas is available for many, many small to medium sized businesses. We are passionate about stopping UK SMEs paying too much and will keep campaigning to make the energy market fairer. In the meantime, we offer practical help – we always contact all of our customers ahead of their renewal date to ensure they have the option to switch to the cheapest energy supplier.
Our process takes only 20 minutes and has received the top rating on independent site Trust Pilot. Fill in our simple form (also at the top right of this page) or give us a call on 0330 0100 251 now to start saving.
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"Mark Weeks has been great this week helping me to switch my business energy. His knowledge is excellent and he explained everything fully so that I understood! I would have no hesitation in recommending and would definitely use again."This review was posted by Nicola Fears on the 15th of February 2019
Pamwan Johnson was excellent
"Pamwan Johnson was excellent. Spent the time to go over all my options with costs fully explained. Very pleasant manner. Would not hesitate to recommend."This review was posted by RJ on the 14th of February 2019
Toni was very helpful and most pleasant…
"Toni was very helpful and most pleasant on the phone arranging our switch today. Would recommend."This review was posted by Keith Jones on the 14th of February 2019
I had a good experience today talking…
"I had a good experience today talking to Lorraine. Who was very helpful. Giving me the best rates ."This review was posted by Kieran Meehan on the 13th of February 2019
"Ian Howell has been very helpful this morning in assisting me to switch our hall gas supply to a new supplier, on a 3-year contract. I have used Switch My Business before and would be more than happy to do so again, next time the contract comes up for renewal."This review was posted by Jacky Robinson on the 13th of February 2019