Understanding the way in which gas and electricity bills work is something that can lead to confusion all too often, especially for small businesses who have to watch every penny. However, changes due to be implemented very soon could make it easier for them to know how much they’re expected to pay for their energy supply.
The proposals by energy watchdog Ofgem will help to make it easier for small firms to switch supplier and will also see energy suppliers give their customers clearer information on how much they’re expected to pay. Shopping around for better deals with different suppliers could also be simplified too.
How Ofgem will make it easier for companies to see when they’re able to switch suppliers is by ensuring all energy firms clearly show in paperwork when contracts with customers are due to expire. This makes shopping around and switching a little easier than it was beforehand.
Another part of the plan from the energy regulator to help make it easier for smaller businesses to understand how they can get the best possible deal on their monthly bills is by forcing all energy suppliers to notify customers of their cheapest deals. This move is one that could be welcomed by hard-pressed companies struggling with rising energy costs.
Despite the moves from Ofgem, they don’t hide the fact that shopping around is difficult for many firms, especially those who are locked into contracts with their existing suppliers. A danger of being in a long-term contract is paying more than expected, which can be hard to cope with, especially in the case of smaller companies who need to keep a firm eye on their finances.
SMEs that have contracts with larger energy suppliers tend to be the ones who are struggling when trying to find a better deal elsewhere. They believe that switching is essential when finding the right deal.
Although it’s uncertain whether Ofgem’s move will ensure that businesses looking to switch will find it easier, any move designed to make it easier for smaller firms to understand what they can do about paying too much for gas and electricity should be welcomed with open arms.
