Micro Businesses & Switching Energy

Switching energy tariffs can be a tough task for any business if you’re not sure what to avoid, but for micro businesses (as defined by the EU, an organisation with fewer than 10 employees and a turnover of less than €2 million per year) it was even harder until 2017. It has previously been very easy for micro businesses to fall into the trap of paying more for their gas and electricity with many energy suppliers not providing enough information to customers about their options. Poor communication and costly exit fees have also meant that 45% of micro businesses have been moved onto incredibly expensive Out-of-Contract rates.

However, the Competition and Markets Authority (CMA) has released the findings from their 2 year investigation and changed the way energy suppliers work with micro businesses.

The CMA recommendations include:

• Suppliers must clearly state their prices online, or provide a list to a price comparison website about the energy rates they offer.
• Micro businesses will be allowed to move from their current supplier’s Out-of-Contract rates to an agreed contract without incurring any exit fees.
• Suppliers must display their Out-of-Contract rates on their website so that customers are aware of how much they could save by moving onto agreed energy rates.

Energy suppliers must now comply with these recommendations, and which have been officially in enforced since 2017. Ofgem has welcomed these regulations from the CMA.

This means that as a micro business, you are much better protected from having to pay over the odds for your gas and electricity supply. Cheaper energy rates are much easier for micro businesses to obtain now suppliers are required to be transparent about the prices they offer, and they can no longer charge exit fees to customers who have been moved onto Out-of-Contract rates.

If you are a micro business and are concerned you are paying too much for your gas and electricity bills, then don’t hesitate to compare energy rates with us today to make sure you are getting the best deal for your business. SwitchMyBusiness.com compares rates from a wide range of suppliers to find you the cheapest energy tariff for your business’s needs, so stick with us and you can be certain you are receiving the best prices available.