Utility Bidder Energy Insights 2022 - Flipbook - Page 15
Utility Bidder has
influence when it comes
to negotiating your
energy
• Speak to Utility Bidder as we can check you have processed the Climate Change
Levy and VAT at the appropriate rates and commission an history audit of your bills –
you could be owed money.
What about Large-Scale Enterprise (LSEs)?.
Our reports are confirmed by those
by the likes of the Federation of Small
Businesses (FSB) who say that energy
costs are the biggest concern facing
their members and could cause ‘an
existential threat’ to their survival.
It also noted that “small companies
don’t have the commercial influence
of larger firms which are able to
negotiate competitive longer-term
energy tariffs with a supplier.”
Thousands of micro businesses are at
risk. This sector, which employs fewer
than 10 people each, but together
account for 4.2 million employees
is in real trouble. They will either
have to slash their profits or lose
staff – or worst-case scenario, shut
Micro businesses and SMEs will struggle to pay their bills, but of course, energy-
their business completely. Utility
intensive industries are particularly exposed to these price increases. Energy costs
Bidder support the FSB who want the
are at the top of everyone’s agenda now, but outside of fixed price contacts there are
government to extend the protection
few avenues for companies to turn.
offered to households to help these
micro businesses too.
Lloyds Bank reports that the dramatic developments in the energy market will
present further challenges for manufacturers recovering from the impact of the
If you are an SME, you may not have
pandemic. Most firms will need to factor the likelihood of continued price pressures
the necessary power to do complex
into their plans for some time to come.
negotiations, but we do. That’s why
it makes sense to work with Utility
It seems that every sector has its issues, for example the car manufacturing sector
Bidder.
is struggling with semi-conductor supply but once this is resolved, energy will be
the most urgent and pressing challenge in terms of price increases. The margins
Many companies face a considerable
on volume car manufacturers are wafer thin and energy will potentially be going up
rise in their bills. That could mean they
50%, 60% or 70%- it’s likely these costs will be passed on to the consumer. Similarly,
have to:
food manufacturers have had to deal with supplier shortages and distribution issues
• Reduce or pause production - or
and once again an energy price spike will have an impact on production which will
even cease trading - which could cause
see consumers bear the brunt.
job losses
• Pass their increased costs on to
customers through higher prices
Utility Bidder’s advice to SME business
is:
• Only pay for the energy you use and
if you have a smart meter give detailed
readings.
• Speak to their provider ASAP if you
are struggling to pay your bill – don’t
ignore it.
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