News

Changing energy suppliers can often be seen as a hassle but many businesses are missing out on the benefits that can be reaped by switching-savvy enterprises, according to new research.

Businesses in the catering sector are in the dark on energy purchasing as new research shows that over half (52%) have never switched suppliers or tariffs, with one in five (22%) not knowing that switching is an option for them.

Three-quarters of SMEs (73%) in the catering sector believe they pay too much for utilities and the same number (73%) understand there are savings to be made.

Following recent consumer switching campaigns, the study, published by energy and water consultancy Utilitywise explores what catering businesses know about energy switching and found that despite feeling they pay too much, there is a lack of understanding about the options or perceived barriers that stop them taking action.

Although one in five (18%) businesses in the catering sector switched in the last year, many others avoided moving to new suppliers and tariffs due to the belief it is not worth the hassle (29%) and the return would not outweigh the time it takes to organise (20%).

Over half of businesses (51%) in the sector reported that a feeling of taking the power back into their hands would encourage them to switch energy suppliers, on top of a financial motivation. A saving of £100 - £200 per year would be enough to encourage 28% of them to switch and over half (60%) already believe they would save up to £300 if they were to switch in 2015.

Andrew Richardson, deputy CEO of Utilitywise, said: “There has been much in the news about domestic customers switching to get better energy deals, which is positive in terms of building a competitive market place and educating consumers about energy. Businesses in the catering sector can do the same and there are real savings to be made.

“However, it is daunting and more complicated for commercial enterprises to navigate switching as they may have a number of sites, meters and different contracts – this is where working with Utilitywise can help.”

David Riches, executive director for Commercial, Trade and Marketing from the British Chambers of Commerce, said: “Many Chamber members in the catering sector are small business owners and have to juggle long-term planning at the same time as running the day-to-day operations of their company.

“Understanding their energy overheads is an important element in managing their business costs effectively. Our research, conducted amongst thousands of Chamber business members across the UK, tells us that many businesses need help when they look to cut their energy costs by switching suppliers. Our Affinity Partnership with Utilitywise was established with this in mind.”