As businesses across Northern Ireland continue to grapple with the cost of energy, new research has revealed 42% of firms surveyed here have never switched electricity provider.
The survey of local SMEs found some of the main barriers to changing providers included the perceived time (42%) and effort (46%) involved, and the potential fees and penalties (40%).
Red C Research, commissioned by Budget Energy, also revealed almost a quarter of businesses were concerned about disruption to their operations.
Despite the high numbers of businesses which have never changed electricity provider, the survey also found that 45% of these firms would consider switching in the near future. Of these companies, 90% said price plans are one of the main incentives for switching.
The findings come as a study from Enterprise NI and the British Business Bank reveals that 76% of Northern Ireland’s SMEs are concerned about rising energy costs, while 87% of businesses have noticed an increase in utility prices.
The facts and figures
Sean O’Loughlin, Managing Director, Budget Energy, said businesses should consider switching provider to secure a tariff that’s tailored for their needs.
He said: “We know energy prices are a big concern for businesses across Northern Ireland at present, therefore, it was surprising to learn that almost half of firms have never switched provider.
“We are in a period when electricity providers need to be competitive on price. They are also acutely aware that the best way to retain customers beyond that first supply period is through the provision of excellent customer service.
“Often the alleged barriers to switching providers that businesses cite, such as the perceived time and effort involved, aren’t a true reflection of the reality of switching, but work needs to be done to make firms aware of the benefits they can unlock through changing suppliers.
“It is important for businesses to be on a tariff that is right for their needs and staying with the same provider may not be the best way to achieve this.”
Sean O’Loughlin, Budget Energy Managing Director
For businesses which change providers more regularly, the survey found the main drivers are better rates and price plans along with improved customer service.
However, it also found some businesses in Northern Ireland are so ‘risk averse’ they are ‘willing to tolerate higher prices’ than face the perceived challenges of switching.
Budget Energy supports the Northern Ireland Utility Regulator with measures, such as the Small Business Energy Charter that was launched last October, to ensure SMEs actively engage with the market and get the right support to meet their needs.
Mr O’Loughlin added: “Energy can be a significant expense for any small business and can represent a high proportion of operating costs. Small businesses need all the help, support and information they can get. With the right approach, they could control their energy use and ultimately improve their profit margin.”