The answer? Very important.
Just think of it like this. As a small business owner, your company’s success and growth is largely dependent on smart investment. A lack of this could lead to failure.
You don’t want to be ripped off when you are buying supplies, and you’ll almost certainly take great care over your payroll expenses.
Negotiating with clients and customers is second nature. But do you give the same thought to where you get your energy from? Or like many, are you unnecessarily paying the price for not caring enough?
A report by SwitchMyBusiness.com has revealed that surprisingly, energy doesn’t seem to be a priority for SMEs. The survey revealed a lack of understanding:
- Over half of businesses don’t understand their energy contract
- 1.3 million SMEs are unsure of how to terminate their contract
SMEs are missing out on savings by not shopping around. Ideally they should be taking action to avoid being ripped off.
The Big Rip Off
The report also suggests that 18.4% of small firms are becoming locked into expensive auto-renewal deals without actually realising. It sounds ridiculous, especially when it only takes a small fraction of your day to suss out what you are paying on your current deal.
Shockingly, energy companies make a staggering £500million profit each year because of this.
Following its findings, SwitchMyBusiness.com outlined some strong action they want the government to take:
- Auto-renewal must be outlawed
- A cap must be introduced at 10% on auto-renewed contracts, which currently cost around 80% more
SwitchMyBusiness.com is clearly committed to the cause. But why aren’t SMEs equally as invested?
SMEs Need Clear Goals
The government acknowledges that energy is important to UK businesses, but they and independent bodies can only encourage. It’s up to the owners of small businesses to take action.
Consider this. 57% of SMEs said they would welcome any help when it comes to ensuring their business survives, but are they following this up?
For many SMEs, it could just be a case of figuring out who is in charge of internal energy matters and increasing employee awareness on energy efficiency.
Make sure decision-makers are aware of their roles and create clear guidelines and goals that will move the business’ future energy plans in the right direction.
Save time and money with Project Lower
It’s very easy to change your energy supplier; you can do it in a few steps.
Save your business time and money by calling Project Lower on 0330 333 4106 or by using our contact us page and we’ll get back to you shortly.