Small businesses’ engagement with the energy market

money energy

 

Ofgem has published its 2018 report on the engagement of micro and small businesses in the energy market. This report is based on the results of a survey of 1253 businesses. It measures the level of micro and small business engagement in the energy market, business attitudes and behaviours around reviewing energy consumption, perceptions about the price differentiation in the market and the ease of comparing and switching suppliers.

The research confirmed that businesses are becoming increasingly engaged in the energy market.  While supplier and tariff switching rates are stable, comparison of prices is increasing and more businesses are renegotiating contracts. Businesses that switched supplier in the past 12 months tend to be larger, are very focused on price savings and are aware that there is price differentiation in the market. Whereas businesses that haven’t switched are less aware of price differences between suppliers, and not all may understand there can be benefits if they switch supplier. The report also states that small businesses that have not switched suppliers are more likely to be apprehensive about the switching process, which may further discourage them from switching.

In related news, the Competition and Markets Authority will be investigating a “loyalty penalty” super-complaint received from the Citizen Advice Bureau. The complaint highlights the concern that consumers who stay with their provider can end up paying significantly more than new customers.

The investigation will consider a range of markets, including mobile, broadband, savings accounts, home insurance and mortgages.

More information can be found here.

Tags Ofgem, SME, Markel Law, enegry market, energy consumption