Why switch utility suppliers? Is it really worth switching utility suppliers? How will it benefit your business? What’s the deal with smart meters? We find out We speak to Lyndsey Monaghan, Retentions Account Manager at utilities broker Inenco to get the expert opinion on all things energy
Can you make significant cost savings by switching?
Is it best to go for a shortor long-term contract?
Some people can, yes. It depends on your individual case. Lots of people pay no attention to their energy bills and just pay them, whatever the cost. They might only consider the big six providers and stay on variable rates after their deal is up so they might not be getting the best value for money. With the longer term fixed contracts, you can make savings. If you have a small chain, say two or three sites, and they’re all on different tariffs and start/end dates, we could work with you to align them, which could lead to cost savings as well.
Pre-Covid, 12- and 24-month contracts were cheaper. But at the moment, longer term are more competitive because providers want to get guaranteed customers for longer. If you can, switch in the summer as prices tend to be cheaper. Generally, autumn/winter is more expensive because demand is higher. A large amount of energy costs – 63%-64% – is not actually the energy itself, it’s what we call ‘non-commodity costs’, which are things like taxes and transportation of energy. Some providers offer tariffs that allow you to fix that part of the bill for three to four years and save money. I’d advise going longer term to get price protection. It means you can budget better, too.
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