NEWS
Do not be fooled by energy price cuts
19/1/2012
Businesses are being told not to be fooled by the ‘Big Six’ cutting their energy prices but instead to brace themselves for increasing energy costs in the non-domestic market.
The past few weeks have seen Britain’s biggest energy suppliers cutting their prices and yesterday Scottish Power and E.ON were the final two to join. Businesses are being told that just because the domestic market has seen price cuts, they should not take this as a sign that energy tariffs for businesses will follow suit.
Nick Heath, spokesperson for energy broker Make It Cheaper told Greenwise:
“Don’t fall into the mistaken belief that the price cuts being announce are going to be passed onto business customers. It is not true. If businesses sit back and do nothing, they are actually going to see their tariffs go up because roll-over rates are actually 50% higher.”
Make It Cheaper commissioned research last year from the Cente for Economics and Business Research stating that by the end of 2012 businesses could be looking at gas and electric prices at a rate of 15% higher than what they are already paying.
The Carbon Trust estimates that a small to medium-sized business can cut their energy costs by 20% through energy efficiency methods such as lighting solutions and loft insulation.
“During these difficult times, businesses may have a narrow focus on revenue or survival but businesses need to be as efficient as possible if they don’t want costs to continue to grow. What we are trying to highlight is if you are having to invest in new equipment anyway, look at energy costs when upgrading as these will equal real savings,” said MD of Carbon Trust Implementation Services, Myles McCarthy.
If you would like help with learning how your business could become more energy efficient, or even cut bills further by branching into renewables then please contact Freesource Energy on 0800 1313 161 and one of our advisors will be happy to help.
