Cheaper utility bills for business

Much has been written in the press about "fat cat" utility bosses raking in huge salaries even as oil and gas prices rise and standards of service fail to improve. Energy regulator Ofgem is lobbying to force utility bills down, but providers in the energy industry have been able to consistently increase prices in recent years. That's certainly not what the government had in mind when it privatised the gas and electricity industries.

To understand why utility bills are higher than they should be, and how businesses can take advantage of cheaper electricity, it is important to be aware that all suppliers are selling an identical product - electricity. That electricity is generated at the same power plants and transferred to your power socket via the same infrastructure no matter which supplier you use. Suppliers are the customer side of the supply chain, buying energy on exchanges and selling it on to customers and businesses. They simply set the prices, read the meter and send a bill at the end of every month.

In theory, fierce competition between companies offering essentially the same product should be enough to force utility bills down. However, even as the electricity industry has developed from a monopolistic to a competitive market, major suppliers have done everything they can to push prices up - and they don't mind losing a few customers as they do so.

Reducing electricity utility bills

So how can businesses reduce their utility bills? Since the energy market was regulated, new players have entered the market, and some of them are at last starting to put pressure on prices. However, the big 6 continue to dominate by tying customers into annual contracts that are renewed automatically, often at a higher price.

The first way for businesses to save on their electricity bills is to switch to a cheaper supplier as soon as possible. Most businesses are on evergreen contracts that renew automatically unless broken by the customer. In other words, businesses need give notice in advance to avoid automatic renewal, and a potential price hike.

The catch is that most businesses forget to do this and miss their chance. If you don't want to be ripped off for another year, click here to register for an automatic renewal alert from Electricity4Business.

In the meantime, there are many ways businesses can reduce consumption by using electricity more efficiently. Electricity4Business offers comprehensive advice on reducing electricity bills by simply using less electricity. Download our Energy Efficiency Advice document for free now.

Electricity4Business - electricity utility bills

E4B not only supplies businesses with the cheapest electricity around, it is also committed to providing invaluable advice and all-round service to every customer. Like your business, E4B is a dynamic company with a long-term outlook - that's why we have the interests of all our customers at heart.