The range in commercial energy prices in the UK is such that the cheapest business electricity rates are a third of the price of the most expensive. The difference between ‘new customer’ and ‘repeat business’ electricity rates, for example, can mean a savings of thousands of pounds, even to the smallest of companies. Consequently, there are two types of business that switch regularly: those with a high consumption of energy in relation to their size and those on tight budgets that simply can’t afford not to.

There are about 1.8 million business electricity customers on the UK mainland that are classed as neither residential nor heavy industrial. Of theses, hotels and B&Bs are the most cost-conscious when it comes to their business energy bills. In fact, providers of accommodation are three-and-a-half times more likely than the average business to switch supplier, having topped a list of 100,000 companies that have shopped around throughout 2009 to compare business electricity and/or business gas prices.

The list, worked out proportionately for each business type, also ranks pubs, bars and restaurants in the top three, just after wholesale premises. Other savvy business types include: manufacturers, post offices, printers and membership/sports organisations. The latter group includes clubs such as British Legions, Scout groups, community centres and other not-for profit organisations – all treated as business premises in the eyes of the energy suppliers.

Rank              Business Type                   Switching Likelihood

1                      Hotels / B&Bs                                 x3.5

2                      Wholesalers                                   x3.3

3                      Pubs, Bars & Restaurants            x2.7

4=                   Manufacturers                                 x2.6

4=                   Post Offices                                      x2.6

6                      Printers                                             x2.5

7                      Membership & Sports                    x2.3

8                      Engineering                                     x1.8

9                      Churches                                         x1.7

10=                 Hairdressers                                     x1.6

10=                 Dry Cleaners                                    x1.6

 

Further evidence suggests that businesses that have recently changed hands are also among the most common types to switch. A ‘change of tenancy’ usually means the energy supplier to the previous occupier will charge the new business out-of-contract, or ‘deemed’, rates which are significantly higher than average.

Here’s how one typical hospitality business has managed to save £3,000 this year following its discovery that it was being charged out-of-contract for its business electricity and business gas.

‘The George’ is a traditional coaching inn set in the heart of the village of Silsoe, Bedfordshire, close to places of interest such as Woburn and convenient for Luton Airport. Accommodation is available in the form of six letting rooms on a bed and breakfast basis. Owner Sue Goldsmith’s New Year resolution was to do something about lowering her business energy bills which had crept up to a total of £10,000 for electricity and gas combined.

Sue was being charged out-of-contact by both her gas and electricity suppliers and that these rates – 16.5p/unit for business electricity and 3.5p/unit for business gas – were much higher than rates normally available. Sue went for in-contract rates of 9.8p/unit for electricity and 2.5p/unit for gas. Because Sue was not in an existing contract with her suppliers she was able to immediately accept. Based on its energy consumption this year, The George has saved at least £2,000 on electricity and £1,000 on gas, bringing the annual energy bill down to a much more manageable £7,000.

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