Plan Smart—Don’t Just Switch Fast
Chasing cheaper energy rates might seem like the smart move, but it could cost your business more rather than saving you money. While switching suppliers can offer real benefits, making changes without understanding the full picture may lead to hidden fees, billing delays, or service disruptions that outweigh short-term savings.
Before making a change, it’s important to consider the long-term impact and fully understand the potential costs—especially if your goal is to genuinely save you money.
In the evolving UK energy market, businesses are experiencing a notable shift: it’s now marginally more cost-effective to renew contracts with existing energy suppliers than to switch. POWWR’s latest Quarterly Energy Barometer Report indicates that the average electricity bill for businesses has decreased by 5% compared to the previous quarter, dropping from £5,117 to £4,863. (Power Info Today)
“This is a paradigm shift for the UK energy industry,” says Matt Tormollen, CEO of POWWR. “The difference may be slight—1.4%—but it is something we haven’t seen for a long time.”
While switching suppliers can offer benefits, making changes without understanding the whole picture may lead to hidden fees, billing delays, or service disruptions that outweigh short-term savings. Before making a change, it’s essential to consider the long-term impact and fully understand the potential costs—especially if your goal is genuine savings.
The Illusion of “Cheaper” Deals
When offered lower rates, it’s tempting to switch energy suppliers. However, these apparent savings often come with hidden pitfalls.
Switching suppliers can lead to inflated rates during transition periods, billing delays, disrupted cash flow planning, and service gaps—especially if the new supplier is unfamiliar with your business’s specific needs.
What seems like a saving on the surface can unravel into unexpected costs and headaches over time.
Why Long-Term Contracts Can Save You More
In an unpredictable energy market, stability is power. Longer-term contracts help businesses lock in consistent pricing to avoid future market spikes.
The average energy contract length has increased to 29 months, up from 27 months in the previous quarter, indicating a growing preference for longer-term deals.
These contracts improve cash flow forecasting with predictable billing, provide better service through relationships with suppliers who value long-term partnerships, and reduce the administrative burden of annual contract negotiations. With wholesale prices still volatile, securing a longer deal can act like an insurance policy—protecting your budget and saving you money over time.
When Switching Does Make Sense
Switching suppliers isn’t inherently bad. It’s sometimes the smartest move. If your current provider no longer meets your business needs, offers poor support, or can’t compete on price at renewal, exploring new options can be a strategic advantage.
The key is making the decision for the right reasons—not just to chase a lower rate but to align your energy contract with your operational and financial goals.
The Bottom Line
Switching suppliers can be part of a smart energy strategy—but only when done with the whole picture in mind. Actual savings come from informed, long-term thinking—not just reacting to the lowest rate.
By evaluating your options carefully, you can avoid common pitfalls and ensure your energy decisions contribute to the success of your business.
Need Expert Guidance on Your Energy Strategy?
If you’re unsure whether to switch suppliers or stay with your current provider, Black Sheep Utilities can help.
Our team of energy experts will analyse your business’s unique energy consumption patterns and financial goals to provide tailored advice. We aim to help you make informed decisions that align with your long-term objectives.
Whether it’s negotiating better terms with your existing supplier or exploring new options, we’re committed to finding the most cost-effective and efficient energy solutions for your business.
GET IN CONTACT WITH US
Is switching energy suppliers always the best way to save money?
Not always. While switching energy suppliers can offer savings, it may also lead to hidden fees, billing issues, or service disruptions that could outweigh the benefits.
Why are long-term energy contracts becoming more popular?
They offer pricing stability, simplify cash flow planning, and reduce admin by avoiding frequent contract renewals—helping protect your business from market volatility.
What’s the risk of chasing cheaper energy deals?
Lower rates can be misleading. They may come with inflated transition costs, poor service, or mismatched terms that don’t suit your business’s needs.
When does switching energy suppliers make sense?
Switching energy suppliers can be the right choice if your current provider offers poor support, isn’t competitive at renewal, or no longer aligns with your business needs.
How can I decide whether to switch or stay with my current energy supplier?
Consulting an energy expert can help. Black Sheep Utilities can assess your usage and goals to recommend whether switching suppliers or renegotiating terms with your current provider is the better option.
