SMEs have the power to change

SMEs have the power to change

As the Competition Markets Authority (CMA) continues to shake up the energy sector and support small businesses, Bradley Groves, CEO and chairman of Great Annual Savings Group (GAS), looks at how it could affect SMEs across the UK.

Every firm, from the SME round the corner to the multi-national exporter, needs a helping hand when their world starts to change shape.

Certainly the energy sector has had to take a step back and reassess the landscape after some game-changing decisions from the Competition Markets Authority (CMA).

The CMA is sharing our cost-cutting goals here at GAS by making sure consumers get every chance to save money from their bills – and has come up with a series of measures to boost competition and bring down prices.

These included a cap on tariffs for the four million people with pre-payment meters, saving up to £90 a year and letting the UK’s 37 energy companies know when households have been on a standard variable tariff with their power supplier for at least three years and could be ready for a cheaper alternative.

Unfortunately, that could mean a few hundred leaflets wafting through your letterbox, but at least it is showing the depth of choice available and the potential to save money.

That echoes a driving force behind our strategy – the savings are out there, but sometimes firms need a fresh eye to flag up the opportunities and take the lead to deliver the savings.

Power companies have only just felt the wrath of the CMA in a report that criticised them for only passing on a fraction of their own energy savings – with a CMA inquiry finding that families and businesses are effectively being overcharged by £1.7bn a year.

And as we’ve been discovering more and more in the four years we’ve been operating, SMEs are paying way above the odds for basic essential services. The CMA obviously agrees, revealing that SMEs are paying a combined £280m per year too much for their energy – but many still feel unsure of tackling the big change.

From our Spectrum Business Park base in Seaham, County Durham, we believe that businesses of all sizes can benefit from using services like ours to drive savings and make changes.

New rules, new companies, new markets and ever-rising costs means that no firm can sit back and presume it is getting the best deal – or settle for one it knows it can afford for the next five years.

Manufacturing and innovation are the backbone of the economy and firms that are at the cutting edge of both need to be able to focus on their work and leave the energy champions to look after their cost base.

If you would like more information on how you can cut your business’ energy bills, contact our experts on 0191 500 5757.