Time to switch

July 19, 2016

Joseph Letras, head of corporate at Great Annual Savings Group, says SMEs should shop around for the best deals on their utilities

Running a business needs courage, foresight and calm common sense. So why do these seem to desert some bosses when it comes to keeping track of their energy costs? Competition Markets Authority (CMA) figures show that SMEs have been paying a combined £280 million per year too much for their energy and their reluctance to switch supplier is undoubtedly a contributing factor.

There are several perceived barriers which stop people switching supplier – but they can be bypassed with the help of an industry expert:

“My contract isn’t due for renewal for another 12-18 months.”

Companies can agree a price in advance so that their new contract begins immediately after the current one has ended. A Third Party Intermediary (TPI) can approach the market on the company’s behalf, secure a fixed price early and, in most cases, reduce the cost.

“It’s a hassle and time-consuming.”

Not necessarily. Companies can scour comparison sites or, for a more accurate solution that’s tailored to their requirements, use a TPI to do the work. The TPI will present a variety of options and possible savings, leaving their client to simply sign on the dotted line.

“I can’t afford an interruption to my supply.”

Supplies won’t be interrupted. Fact. Companies’ energy is supplied through the same infrastructure regardless of supplier. What’s more, if the contract is arranged in advance there’s no need to even think about the issue as the contract will simply switch over.

“I’ve looked at the big six, there’s no opportunity to save.”

Many smaller suppliers offer cheaper contracts on more favourable terms. A good TPI will understand these deals in forensic detail and secure a better price than that found on a comparison website or the open market.

“What about exit charges?” 

Leaving some contracts early can result in penalty charges but TPIs can negotiate a deal whereby the benefits of leaving outweigh any charges.


Great Annual Savings


0191 500 5610

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