As Northern Ireland businesses continue to struggle with energy costs, new research has shown that 42% of firms surveyed have never switched electricity provider. The study of local SMEs identified the main barriers to changing providers as the perceived time (42%) and effort (46%) involved, along with potential fees and penalties (40%).
The research, commissioned by Budget Energy and conducted by Red C Research, also found that nearly a quarter of businesses were worried about disruption to their operations. Despite the high number of businesses who have never changed electricity provider, the survey 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. These findings coincide with a study from Enterprise NI and the British Business Bank revealing that 76% of Northern Ireland’s SMEs are concerned about rising energy costs, while 87% of businesses have noticed an increase in utility prices.
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 Irelandat 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.”
For businesses who 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.
“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,” Sean added.
Founded in Northern Ireland in 2010, Budget Energy has grown to become Northern Ireland’s third largest energy provider.
In May 2020, Budget Energy was acquired by Flogas Ireland as part of its strategy to become a leading all-island energy provider. Flogas is part of DCC plc, a leading international sales, marketing and support services group and a FTSE100 company.
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