As small businesses across the UK get ready to fully reopen, owners are making difficult decisions to find areas within their business plan to save money and reduce costs that can be reinvested in driving growth. A recent survey of 500 small business owners by commercial utility experts Yü Energy has revealed that during the pandemic , reducing staff (43%), reduced hours of service (33%) and reduced salaries (28%) were the most common money saving factors put in place. However, as businesses build their operations back up, they need to find new ways to streamline their cost base without stifling growth.
Despite these pressures, few have considered the cost savings that can be achieved by switching their energy tariff, even though 77% of business owners believe they are paying too much for their energy.
Small businesses reopening in line with the Government roadmap will inevitably be increasing their energy usage. They could be overpaying by as much as 40% on their electricity bill and a staggering 60% on their gas bill if they are on out of contract rates with their existing supplier. For a business within the hospitality sector with a floor area of 1,000sqm, this could save a massive £16,678 per year if their energy tariff is currently out of contract. A business within the retail sector with a similar floor area could save £14,031 per year by switching from their out-of-contract energy tariff.
Yet, one in three (30%) business owners admit the last time they changed energy provider was three years ago, one in five (20%) admit switching five or more years ago and one in 10 (8%) admit to never changing their provider. What’s more, over a quarter (28%) of businesses admitted they don’t know what type of energy tariff they are currently on or when their current plan is up for renewal (30%).
In response to this, Yü Energy, has launched two new energy plans, Agile and Boost, created to meet both the immediate and longer-term challenges faced by businesses as they look to rebuild in the wake of the Covid pandemic.
The Agile energy plan is designed for those businesses looking for competitive rates, whilst retaining the flexibility of a short-term three-month plan as they get back on their feet. The Boost energy plan allows businesses to boost their fixed energy rates for longer than the usual 12-month and 24-month contract lengths, and at highly competitive rates. This helps to provide businesses with greater budget certainty as they rebuild and plan for the future during uncertain times.
Group Sales and Marketing Director for Yü Energy, Simon Smith said:
“As businesses look to get back on a firm footing and rebuild for the future, it’s more important than ever that they manage their cost base effectively. Our new Agile and Boost energy plans address key concerns for businesses right now; keeping energy costs as low as possible, whilst providing short-term flexibility or longer-term certainty, depending on their particular priorities.
“A short amount of time reviewing their energy supply could deliver significant benefits to the bottom line at a time when every penny counts. Over the coming months we’ll be continuing to develop further solutions to support the utility needs of the small business sector during these unprecedented times.”