SMEs warned on ‘rolled-over’ energy bills
SMALL and medium-sized-businesses are overpaying for their energy by up to £2.5bn a year, according to a Liverpool company.
Inenco Direct says many SMEs are not monitoring their contract date ends and are automatically moving on to more expensive tarifs.
The company is keen to raise awareness among SMEs because energy prices are set to increase as the UK is forced to import more oil and gas as a result of older power stations being closed down.
Inenco Direct believes that one in four small businesses have had their energy contracts rolled over onto higher rates, which can be up to 200% per cent higher.
It is calling on the government to ensure energy firms put contract end dates on all invoices – so small firms can then shop around for the best deal.
Karen Trepte, managing director of Inenco Direct, said: “Knowledge is the key to ensuring businesses have the power to keep their energy bills in check. That means ensuring they know the contract they are in and when it ends.
In some cases lack of knowledge has seen firms’ contracts moved from a discounted rate onto standard rates, which can be up to 35% higher or even ‘out of contract’ rates, which can be up to 200% higher.
Karen Trepte adds: “The fact that some 3.5 million of those businesses could still be paying too much for their gas and electricity, simply because they don’t keep a track on basic information, is worrying.
“It can have a major impact on their profitability, ultimately threatening jobs and even risking the closure of the business.”
Inenco Direct provides analysis and advice on the energy markets to thousands of companies and organisations across the UK, including manufacturing businesses, retailers, hospitals and the public sector.
Innenco’s research is based on information obtained in 50,000+ calls a year it makes to SMEs. The £2.5bn figure is based on a 35% increase in charges if contracts are allowed to roll over, on annual energy bill of £2,000, across 3.5 million small businesses.
