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PowerExperts.co.uk Warn 86% of UK Small Businesses are Paying At Least 30% Too Much on Their Energy Bills

December 18, 2012

LONDON, December 18, 2012 /PRNewswire/ –

Business price comparison site PowerExperts.co.uk [http://www.powerexperts.co.uk ] has
warned at least 86% of small to medium UK businesses are being charged on average 30% more
than they should be on their energy bills.

Research carried out this year (2012) on behalf of statutory consumer body Consumer
Focus shows 48% of polled businesses simply let their energy provider increase their rates
by an average 30% without even questioning if they were receiving the most competitive
deal on the market.

This common practice by all major UK energy companies is known as “rollover
contracts”. The higher rates offered will automatically renew for another 12 months if you
don’t do anything.

While almost half of small to medium enterprises (SMEs) failed to act at all, even
more shockingly, 38% directly accepted the higher rollover rates offered – potentially
leaving themselves hundreds of pounds out of pocket each year.

Only 14% of businesses declined rollover rates.

James York, a spokesperson for PowerExperts.co.uk, described the figures as
“concerning”, and urged all UK SMEs to refuse rollover rates and search for a competitive
deal.

He said, “Businesses should never accept rollover rates without first investigating
what else is available to them.

“The fact that almost half of businesses are failing to act and ending up on more
expensive rates is concerning enough, but when you consider that nearly 40% are actively
accepting these rates, it’s even more troubling – especially when businesses need to
conserve as much cash as possible in this economic climate.

“That’s a huge percentage of SMEs who are paying far too much for their energy, simply
by not shopping around.”

Mr York added that while a huge number of businesses have found themselves marooned on
rollover rates, the actual number of businesses paying too much for their energy could be
even higher.

He explained, “The truth is, the situation could be even worse than it seems because
when you consider 14% of businesses rejected the rollover rates, there’s a question about
what happened to them.

“There’s a real danger that a percentage of those companies, having terminated their
contract, may have failed to take out a new contract within the period stipulated by their
previous supplier. When that happens, the old supplier can implement out-of-contract
rates.

“These can be literally up to 300% higher than ordinary rates. That’s why it’s vital -
particularly for SMEs – to be proactive and make sure they have a new deal in place.

“PowerExperts.co.uk can help in that regard. We compare tariffs from all the major
suppliers – and several independents – to make sure we offer businesses the cheapest
prices we can. When it comes to renewing, that’s crucial, otherwise, there’s a real danger
companies could end up paying more than they need to.”

Properly obtained SME contract prices are always lower than rollover rates. If you got
caught out last year, PowerExperts.co.uk could save your business up to 70% in today’s
competitive market.

NOTES FOR EDITORS

PowerExperts.co.uk is an online price comparison site – specifically designed for UK
businesses.

More information on rollover contracts and how to avoid them can be found at:

http://www.powerexperts.co.uk/business-energy/switch.html

All research contained in this release is taken from “Micro-business energy markets
2012: a review for Consumer Focus
[http://www.consumerfocus.org.uk/files/2012/09/Under-the-microscope.pdf ]“.

A micro-business is defined by Consumer Focus as a company that meets at least one of
the following criteria:

        - Annual electricity demand less than 55,000kWh
        - Annual gas demand less than 200,000kWh
        - Fewer than 10 employees (or their full-time equivalent) and an annual balance
          sheet not exceeding EUR2 million.

        For more information contact:

        Sean Hamilton
        MediaCo (UK) Ltd.
        T: +44(01382)525227
        E: sean.h@media.co.uk

SOURCE PowerExperts.co.uk


Source: PR Newswire