Struggling UK businesses facing a £500 spike in energy bills

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Millions of Britain’s small businesses risk their electricity bills rising by over a third, if they fail to keep on top of costs, Love Energy Savings has warned.

Love Energy is calling on those firms facing difficulties to not ignore the problem, and talk to their energy supplier.

Failing to do so risks businesses defaulting on their contract – which could result in them being placed on out-of-contract rates where costs are typically 35% higher. 

For an average small business that would see them going from a rate of between 14.3p – 15.1p per unit to 19p – resulting in annual costs rising from between £828 ($1,100) to £1,280 ($1,700) overnight.

The stark warning comes as the scale of the challenges faced by the nation’s small firms has been highlighted by the Federation of Small Businesses who have predicted that a quarter of a million businesses could be lost this year.

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Love Energy Savings CEO Phil Foster says: “The nation’s businesses are the backbone of Britain, but the pandemic is seeing many of them fighting for their survival.

“That’s why it is absolutely vital they do all they can to avoid any unnecessary costs. 

“We’re urging all firms who may be struggling with their energy costs to talk to their suppliers. By opening a dialogue then arrangements and allowances can be made.

“If businesses ignore the problem and default on their contract – then they’ll be immediately placed on a tariff where their costs rocket by over a third.

“At Love Energy Savings we’re experts in driving down energy bills for Britain’s small businesses. To date we’ve helped over 350,000 firms save a total of almost £100 million ($138 million) in energy bills.”

The onset of the pandemic has seen a 15% increase in firms turning to Love Energy Savings to drive down their energy bills.

Phil adds: “By using our platform, in just four clicks, new and existing customers can find a better energy deal 24/7 that could save them hundreds of pounds.

“Spiralling energy costs are an expense no business can bear, especially under the current circumstances.

“We’re determined to continue supporting the nation’s SMEs through these challenging times by providing them with the most competitive energy tariffs on the market.”